Chances are, unless you’re an account or tax agent yourself, you won’t be familiar with how to maximize your 2015 tax refund. But don’t despair, that’s where we come in. Our team of friendly, professional, qualified tax agents is available to provide you with advice and support when you lodge your tax return with us. They will then check the final tax return before it is lodged with the Australian Taxation Office.
To really get the ball rolling though, we thought we’d put together some tips and tricks on how to maximize your 2015 tax return refund.
How to Maximize your 2015 Tax Refund: For Individuals
If you know what you’re looking for, there is any number of opportunities available to individuals looking to reduce their 2015 tax bill, and maximize their tax refund this year.
It is vital to remember that when it comes to all of the tax saving options below, they MUST be actioned before 30 June 2015, if you want to reduce your tax liability for your 2015 return. If actioned after 30 June, the expenses will go towards reducing your tax liability for next year instead.
Payment of Deductible Expenses Before 30 June 2015
The first, and probably most obvious, way to maximize your 2015 tax return is to pay for all those tax deductible expenses that are available to you before 30 June. These include:
Memberships and Subscriptions
Paying your annual membership fees, registrations and renewing of subscriptions should be done before 30 June in order to claim a tax deduction for the expense in your 2015 tax return.
Memberships and subscriptions can include anything from nursing registration fees, union fees, professional body and association membership fees, and even journal, magazine and newspaper subscriptions (provided that they are directly associated with the industry in which you work).
Income Protection Insurance
Income protection insurance that is paid by an individual (not via a superannuation fund) is entirely tax deductible. So, it goes without saying that if you considering taking out income protection insurance, or already have existing cover then paying the premiums for the next 12 months in advance, before 30 June would allow those premiums to be claimed as a deduction in your 2015 tax return.
Interest on Investment Loans
Any interest that is owed on investment loans should be paid prior to 30 June. These payments include interest owed on share portfolios and rental property investments. In some cases interest payments can even be made in advance of next year.
Expenses Associated with Rental Properties
If you own an investment property, which is rented out, then you should ensure that all expenses associated with your rental property are all paid in full before 30 June. These expenses may include insurance fees, council rates, repairs, maintenance, and body corporate fees.
If your rental property has not yet been assessed by a Quantity Surveyor to identify and assess depreciation and building write off entitlements it would be a good idea to have that assessment completed before 30 June. The Quantity Surveyor’s fee for the review is tax deductible and the report will ensure you maximise you depreciation and building write off expense claims in 2015.
Capital Gains Tax (CGT)
It is always a good idea to review the gains and losses on each asset within your investment portfolio before year-end. The outcomes of the review could provide opportunities to:
• Realise capital losses to offset any capital gains that were made earlier in the income year.
• Defer the realisation of capital gains until July and/or ensure that assets have been held for a period of time of greater than 12 months before sale so that the 50% discount can be applied to the gross capital gain.
Salary Packaging Arrangements
An effective salary sacrifice arrangement will reduce your marginal rate of tax. A typical salary sacrifice arrangement may include additional superannuation contributions. If this is an option we would suggest you discuss this with your employer especially in relation to possible upcoming bonus payments.
Contact Online Tax Australia:
Your Reliable, Experienced Australian Tax Agent
If you’ve been searching for a reliable, experienced Australian tax agent, then contact the friendly team of professionally qualified, accountants at Online Tax Australia today:
• Call us on (03) 9852 9051
• Email us at email@example.com
• Located at Level 1, 278 High Street, Kew, Vic 3101