4 WAYS TO REDUCE YOUR TAX

With the end of the 2014-15 financial year looming what better way than to plan what can make a significant difference to your overall tax position! Here are four ways you can do so:

Receipts should be kept to take advantage of tax deductions especially for large items purchased. This can range from work related laptops to donation receipts. If the total amount you are claiming is $300 or less, written evidence will not be required although you will need to be able to show how you calculated these claims.

Some insurance premiums, such as those for income protection insurance, are generally tax deductible as an expense incurred in earning your income. Income protection insurance helps to secure you in an event of an illness or injury, this can be deducted from your tax return if taken out before the 30th of June 2015.
For sole traders or businesses – business insurance premiums may also be claimed as a deduction.
 

You can claim for a unique uniform; one that is distinctively designed where there is a logo and the clothing is made only for the employer.
If the uniform you wear to work is compulsory, or you are a trades person – the clothes or the laundry expenses are tax-deductible.

In the 2014/15 year a $30,000 per annum cap of super contribution applies for those who are aged less than 49. A concessional contributions cap applies for those aged 49 years or over of $35,000 for the 2014-15 income year. There are specific rules for making super contributions so please seek advice from Optima Partners before contributing to ensure you can take advantage of the deduction.
If your have any questions or would like assistance, please contact your accountant at Optima Partners.

Melinda Wong

Accountant – Optima Partners