Tax Tips

In Australia "Tax Time" is on the doorstep, so here's some information to help you come out on top -

1. Claim all the deductions you can that came about as a result of producing income or carrying on a business. Consider self-education fees, home office expenses, subscriptions and travel expenses. Receipted of course.

2. Delay income and bonuses until after July 1. Tax rates will be indexed as of the new financial year, which means you will pay a lower rate of tax on income next year.

3. Donate to your favourite charity. Any donations of $2 to a registered charity are tax deductible.

3. Make a super. contribution for your spouse. If they earn less than $13,800, you can make up to a $3k contribution and reduce your tax by up to $540.

4. Maximum your super. Salary sacrifices are taxed at only 15% when paid into your fund and reduce your assessable income.

5. Take out health insurance that includes hospital cover. If you earn more than $50k you will be charged 1% of your income otherwise.

6. Pay the premium of an income protection policy. Premiums are tax deductible and by paying now you'll get the tax deduction this year.

Special tip from me: talk to your accountant about claiming massage as "stress management". It can be done.

Note: The ATO has advised if will be paying special attention to the following industries, so make sure your records are in order and claims are legitimate:

Tourism workers, travel consultants and guides
Fitness and sporting industry employees
Construction industry & mining site employees
Guards and security employees.

Resource: 'Business Chicks Latte' magazine Jun/Jul 07. The information was provided by tax professionals Vanessa Hillier of Sentinel Wealth Management & Anthony Bell of Bell Partners.