By Admin, Saturday, June 16th, 2012
Saving money wherever you can should be everyone’s daily objectives…And of course reducing your tax burdon can often be a real opportunity to either minimise the tax you have to pay at the end of June or increase our refund!
So here are just a few ideas on how to minimise your tax…And maximise your refund…
Health Insurance Rebate
Would you like a $1,000 rebate? Well, it may be possible. If instead of paying your premiums monthly, you pay your premiums before 30 June, 2012 you can get a rebate up to $1,0oo. If you’re in the high income tax bracket, and you pay your premiums in advance (for the 2013 financial year).
Individuals earning above $83,000, and families earning more that $166,000 are set to be hit by a progressive means test and become ineligible for the full health insurance rebate.
The rebate will become zero for singles earning more than $129,000 a year and families above $258,000 per annum. So, if you are able it may be worth your while to pay your premiums in advance.
Other Items To Pre-Pay
Similar to the health rebate…You may consider making some prepayments for valid expenses. Things such as union fees, subscriptions to trade, business or professional associations, income protection insurance, seminars or conferences (note service must be provided by 30 June 2013 for these to 100% deductible in the 2012 year).
Don’t Forget Your Out Of Pocket Medical Expenses
If you incurred out of pocket medical expenses greater than $2,060 in the past year, you can claim a 20 per cent tax offset against those expenses.
Out of pocket medical expenses are costs that you have incurred after any rebates from Medicare or a private health insurer have been made. Specific medical situations may be ineligible so speak to your accountant.
The tax offset against out of pocket medical expenses will also be means tested next financial year. So, if you are outside the income brackets that affect the private health rebate scheme, this may be the last year you can make this medical claim.
Get Your Claimable Work Expenses Ready
You can claim up to $300 in work expenses without receipts, but it is still always best to have them. If, you are ever audited by the tax office, you will be required to show all receipts for any work expenses claimed, including those costing up to that initial $300 claim.
What To Do With That Refund
Don’t spend it..Invest it!
If you’ve got debts. then generally the wisest thing to do would be to put your refund towards the debt/s with the highest interest rate…That’s a great investment!
And, if you’re fortunate enough to be without debt then even if it’s only a modest refund, invest it elsewhere. Investing that money might seem like a drop in the pond of monetary need. But, with compound interest and time, as well as continued small investment amounts, it really is very surprising just how those small investments can grow!
Of course, please ensure that you get qualified and personal advice from a qualified tax adviser prior to taking any action.
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