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Mr Taxman's top ten individual tax tips for 2010

May 04, 2010

It is that time of the year when we all need to do some tax planning. June 30 is rapidly approaching so here are some excellent tips for you to get your house in order and increase your tax refund.

1. Car log book

Deductions can be in the thousands if you use your car for work purposes and keep a log book for 12 weeks. Keep all costs associated with the running of your car.

2. Super co-contribution

If your income is under $31,920 and you contribute $1,000 post tax into super the government will match it dollar for dollar. It amazes me how few people actually take advantage of this extra $1,000. Whilst the co-contribution is less generous this year it is still free money!

3. Education Tax Refund

Don't miss out on this tax rebate which gives a 50% refund on certain education expenses up to $780 expenditure for each primary school child and $1,559 for each secondary school student. You must be eligible for Family Tax Benefit Part A to receive.

4. Minimise capital gains tax (CGT)

The stockmarket had a bumper year this year so you may have made a nice capital gain or two. Reduce CGT by selling any non-performing shares that you may be holding. If Any unrealised gains should be sold after 1 July to defer tax for another year. And remember that if you hold shares for more than 12 months you reduce CGT by half.

5. Salary sacrifice into super

For those under 50 years of age you can contribute up to $25,000 per year into super & only pay 15% tax. This figure increases to $50,000 if you are over 50. Build your wealth quicker rather than paying up to 46.5%.

6. Prepay interest

Prepaying interest 12 months in advance before year end on your rental property or margin loan is an excellent strategy for those that will have a lower income next year due to factors such as maternity leave or redundancy.

7. Keep your receipts

With the ATO increasing their audit activity this year yet again it is important that you keep your receipts. The ATO motto is no receipt = no deduction so you could be costing yourself $$$ by not keeping those dockets!

8. Spouse super contribution

If one spouse's income is less than $10,800 then the other can put up to $3,000 into the spouse's super fund and receive an 18% rebate ($540) in tax.

9. Get a great accountant

Great accountants are like quantity surveyors ... they know where the boundaries are. Avoid paying too much in tax or leaving yourself to a visit from the ATO. And their fees are tax deductible!

10. Just do it!

You now have got some great tax tips, it's time to take action. Times are tough so every dollar saved counts.

Tags: EducationEmployeesFamilyFinancial PlanningSuper

Author: Mr Taxman

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  • "Currently voided but that may change in the future...."

    By: Mr Taxman at Mar 24, 2017 9:03PM

    Post: Two important dates for those with HECS/HELP debts

  • "Provided you stay under the repayment threshold & you an Australian tax resident, it will continue to accumulate (adjusted for CPI each year). Currently there is no ability for the government to take..."

    By: Mr Taxman at Mar 24, 2017 9:02PM

    Post: Two important dates for those with HECS/HELP debts

  • "Yes you will get that extra tax back when you lodge your return provided you are under the repayment threshold. Consider it a forced form of saving. Please note that for some 2nd jobs, the tax being..."

    By: Mr Taxman at Mar 24, 2017 8:58PM

    Post: Two important dates for those with HECS/HELP debts

  • "Technically no as you are filling out your TFN declaration in good faith that it is accurate that you don't have a HECS debt. If you don't happen to have any extra tax being deducted & you don't make..."

    By: Mr Taxman at Mar 24, 2017 8:56PM

    Post: Two important dates for those with HECS/HELP debts

  • "It will depend on what your taxable income is - if you are over the repayment threshold level https://www.ato.gov.au/Rates/HELP,-TSL-and-SFSS-repayment-thresholds-and-rates/ then some of your extr..."

    By: Mr Taxman at Mar 24, 2017 8:53PM

    Post: Two important dates for those with HECS/HELP debts