(03) 9020 2905Hey, it’s June! And June is “grand final” time for personal finances – time to minimise your taxes. And $1000 can give some great tax time rewards.
“I hate tax time!” I hear you scream. Shame, I reckon. People who hate tax time usually pay more tax than they have to.
That’s a cardinal sin, according to the late Kerry Packer, who reckoned governments are hopeless at spending our taxes. Why pay extra, unless you want Kevin Rudd to name the pink batts or school building programs after you?
Planning at tax time can save and even earn you a quick, guaranteed, return on a sum like $1000. Why? Because anything you spend on tax deductible items/services/investments in June, can be claimed from the ATO from July.
If you’ve got a spare $1000, you might purchase some work-related items. Depending on your industry, you might be able to buy a handbag, computer equipment, books, clothes, or other stuff you need anyway.
Property investors could buy something that might make tenants pay more to rent the property. You could potentially spend $1000, get a tax deduction and get an extra $10 a week rent. A double win.
And then there’s geared investors who could earn a tax break for pre-paying interest. Prepay $1000 in interest for next year and you could get up to $465 back on tax.
Save part of your $1000 to make a deductible charitable donation.
Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and a licensed financial adviser.