Tips to prepare you for tax time

Tax time can feel stressful, but there are simple things you can do to make filing your return feel less daunting when the time comes around. Here are some of the steps you can take all year round to help you prepare for tax time.

Keep track of your documents

Use a clear filing system to store important salary, super or investment documents throughout the year, this will make them easier to locate when you need them.

Make a savings plan

Tax time can be a great prompt to review your finances more generally. How much of last year’s salary were you able to save? Take some time to implement a savings plan that works for you and your family.

Get advice

Financial management can be daunting, but there is always someone who can help. Make sure you seek help from a professional adviser when you need it as it could save you money down the line.

Protect your income

Not only can income protection insurance help you cover your costs if you were unable to work due to sickness or injury, the premiums may be claimed as a tax deduction to the extent the cover provides benefits designed to replace your income.

Consider the Private health insurance rebate

Your eligibility to this rebate is income tested, meaning that if your income is higher than your rebate entitlement may be reduced or removed. Many people may claim this rebate as a reduction in the premiums they pay to the insurer or alternatively it can be a refundable tax offset.

Self-contribute to your super

By adding personal contributions to your super within the allowable limits, not only do you save a little more for later but they may reduce your overall tax bill.

If you want to review your finances prior to preparing your tax return, get in touch.

Information provided is general in nature and given in good faith and for the information purposes of Australian tax residents only. As the application of tax law depends on each person’s individual circumstances, in turn it is important you seek independent, professional taxation advice. The complexity of taxation laws and rulings is such that any taxation advice should be specific to your circumstances. For comprehensive advice regarding the taxation implications that takes into account your personal circumstances, please contact a registered tax agent, tax (financial) adviser or the Australian Taxation Office

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