With the financial year ending soon, there are still plenty of ways to reduce your tax and boost your superannuation before July 1. Here are some last-minute tips to help you optimize your finances.
Working from Home
You are entitled to deductions for costs incurred while earning income and working from home. Items of capital equipment, such as furniture, computers, and associated hardware and software, costing less than $300 and used for work-related purposes can be written off immediately. Items costing more than $300 are claimed over the item’s effective life.
With end-of-financial-year sales, purchases made up to June 30 could be claimed as deductions in this year’s tax return, instead of waiting for next year.
Buy a New Handbag
There’s still time to buy a handbag, briefcase, satchel, or backpack that, if used for work purposes like carrying a laptop and work papers, can be claimed as an immediate work expense deduction if it costs less than $300. Remember to apportion your deduction if the bag is used for both private and work purposes.
Super Co-Contribution
Making after-tax contributions to your super fund can help build retirement savings. If your total income is less than $43,445 before tax in the 2023-24 financial year, you can make an after-tax contribution of up to $1000, with the government matching every dollar up to $1000 with 50¢. The co-contribution reduces as your income rises to $58,445, when the government co-contribution cuts out.
This is particularly beneficial for children or grandchildren starting their careers or working part-time, as they could be eligible for a government co-contribution of up to $500.
Concessional Super Limit
The largest tax deduction available to most people is making additional contributions to super to claim up to the maximum concessional limit of $27,500. This is worthwhile for those earning $45,000 and above, as they receive a personal tax deduction and the super fund pays a lower tax rate on earnings. Higher tax brackets offer even more significant tax benefits.
Ensure you do not exceed the $27,500 limit during 2023-24, and act quickly to allow the contributions to clear with your super fund before June 30, which falls on a Sunday.
By taking advantage of these last-minute opportunities, you can make significant improvements to your financial situation before the end of the financial year.
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their personal circumstances before making any financial decisions
Take action now to optimize your tax and super contributions before the end of the financial year.
Consult with a BOA & Co financial advisor at 1300 952 286 or email us at info@boanco.com.auto to make informed decisions based on your personal circumstances.
Visit our website at www.boanco.com.au for more information.