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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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comments-rhsLatest Comments

  • "Not with me Timothy. Sorry."

    By: Mr Taxman at May 17, 2017 8:15PM

    Post: Received your tax refund yet?

  • "Hi I would like to get my tax refund done I'm pretty sure I did it with guys 2014 "

    By: timothyhughes at May 15, 2017 12:47AM

    Post: Received your tax refund yet?

  • "Just wondering if you are in trades via the forex and at 1st July you a still in those trades this would not be considered trading stock as suggested by the ATO as the profits/losses have yet to be..."

    By: Chris at May 11, 2017 5:40AM

    Post: Foreign currency trading

  • "nice work thank you"

    By: AFL Sports news at May 08, 2017 10:01AM

    Post: Marriage

  • "My ex-partner and I broke up at the end of August 2016 and I am now a sole parent who receives Family Tax Benefit. My ex-partner has not does his tax return for the 2015/16 financial year and..."

    By: Melanie at May 05, 2017 12:26AM

    Post: Marriage