And just like that, June 30 is nearly upon us — the official end of the financial year. You’ve seen the ‘EOFY’ sales all around, heard them on your radio, TV, at the shopping centre, and in your email inbox. You know it means Something Important for your tax and how much money you’re supposed to pay to the tax office. But you’re not quite sure what that Something Important is, or what to do about it. We got you.
Let’s get one thing straight: paying tax is not a bad thing. It’s how we redistribute wealth to ensure that we all have (theoretically) equal access to services and infrastructure. But that doesn’t mean we should pay more tax than we need to, right?
Here are our top five tips for getting sorted at tax time and ensuring what you’re entitled to stays firmly in your pockets.
- Get organised. Picture this: a glass of wine, candles lit, UberEats arriving on your doorstep, and you’ve got a hot date with your…taxes. It’s the stuff great love stories are made of! Before June 30 rolls around – it’s time to get organised. Even if you’re planning on paying an accountant to do your tax for you, rocking up with a shoe box full of papers is not a great idea; newsflash, they’ll charge you to sort through that box. Ask them how they would like the information organised and hop to it. And, if you have any questions, head over to our Verve Facebook group, where our Financial Coach Zoe is live every Monday at midday to answer your burning money questions.
- Claim on work-related expenses. It’s important to know what deductions are available to you. This is what empowerment looks like ladies, and it looks great on you! Start by downloading the ATO’s myDeductions app to track your deductions. FYI – if you’re employed on a contract basis, you can claim $300 on work-related expenses with.no.receipts.
- Be reasonable – that’s all the ATO is really after. if you use your phone for work, by all means, claim it as a work-related expense. But, if you only use it 50% of the time for work, then only claim it at 50%. Simple!
- Make a donation. You may not know this but, every time a member joins Verve, we make a donation on your behalf to GoodReturn, giving women in developing countries funding they need to build a business or develop their skills. Win-win! Making a tax deductible donation to your favourite charity (or finding the receipts from donations you’ve made throughout the year) can be a great way to give back and reduce your tax. Check out the amazing work of GoodReturn here or have a surf around giving platform GiveNow to find an organisation you’re passionate about.
- Contribute to your super. Making a personal contribution to your super can be another great way to reduce your bill at tax time and invest for your long term future. Read up on Tax & Super on ASIC’s MoneySmart website here. And then login to your Verve Member Portal here and away you go!
There you have it. Lots of ways to get yours at tax time! And, next year, don’t wait until June 29 to do something about your taxes. Be diligent and let’s make sure that the tax man keeps his hands off!