As we near the end of what has been another challenging financial year, it is important to consider the financial solutions that can assist you in navigating tax time. If you are practised in tax planning, it might be time to revisit your existing strategy. For those new to tax planning, here are a few tips to get you started. No matter your experience, our dedicated team of professionals is here to support you in your financial goals.
TIP: Claim your home office expenses.
For the 2023 financial year, the ATO has a prescribed shortcut method whereby taxpayers can claim a deduction of 80 cents for every hour they worked from home during the 2023 financial year. This covers expenses including telephone, internet, electricity and depreciation on furniture and equipment. To substantiate this, individuals should have some record of the hours worked from home. If the taxpayer claims the shortcut method, they cannot claim any other deduction relating to home office expenses.
TIP: Ensure deductions are claimed for donations made to deductible gift-recipient charities made in the 2023 financial year.
TIP: Claim work-related car expenses using the cents per KM or travel logbook method.
Under the cents per kilometre (KM) method, taxpayers can claim up to 5,000 KM at 72 cents per KM. Under the travel logbook method, a taxpayer must have maintained a logbook for at least 12 weeks to establish a business use percentage of car travel. The percentage of business use percentage can then be used to claim actual car expenses incurred throughout the year.
TIP: Determine any self-education expenses incurred throughout the year.
If you have invested in upskilling for your current role or additional responsibilities that relate to improving the skillset of your current employment or benefit potential career progression, you could claim self-education expenses. This can include accredited online courses, seminars attended, or post-graduate studies.
TIP: Make a superannuation contribution for a low-income earning spouse.
Did you know a taxpayer can make a superannuation contribution for their low-income earning spouse? To be eligible, the spouse must have a taxable income of less than $40,000, and the taxpayer can then claim an offset of up to $540.
TIP: Make catch-up superannuation contributions (if you are eligible to).
Taxpayers with a superannuation balance of under $500,000 can make additional concessional contributions beyond their $27,500 contribution cap if they did not fully utilise their available contribution cap in prior years – commencing from the 2020 financial year. For example, a taxpayer that has only made concessional contributions of $15,000 in the 2022 year could make a deductible superannuation contribution of $40,000 in the 2023 financial year.
How Yield can help
If you are new to the tax planning game or must revisit how you manage your personal finances, we are here to guide you to the most suitable solution for your situation. Appointments can be made for an in-person consultation at our main office in beautiful Tanunda, Barossa.
Remote appointments are available via Zoom meetings, phone calls, and email — whichever format you are comfortable with.
Alternatively, you can schedule a mobile appointment where a member of our team will come to you! Mobile appointments are not limited to the Barossa region, as Yield partners can visit you in Adelaide and surrounding suburbs from the location on Brighton Road, Glenelg.
For more information
If you have any questions about tax planning, contact the Yield Business Advisory team. Our team can support you with general guidance and business advice and assist individuals to build a stronger financial future.