Submission of Tax Returns is a blessed opportunity for aware people. These persons pave ways to find out ways to create a maximum refund of the sum they paid as tax. According to the Australian Taxation Office, the average annual tax return amounts to AU$2574. (Source)
In this article, I want to come out with some concepts that will help maximize your refund from tax paid.
Fix your tax bracket
Knowing the tax bracket is essential; with this, you can calculate the amount of tax you will have to pay for an assessment year. Without such acquaintance, you will never understand the extent of tax you are obligated to pay. Your tax bracket depends on both marital and financial status. These also change in every assessment year. Experts in the Australian Taxation Office are ready to help you fix the tax bracket. They will also let you know every break-up of the amount payable.
Creating a receipt system
Aware people stuff their receipts in a safe place to stay calm and have peace of mind. Receipts are subject to frequent losses and thus require extreme care. Australian Taxation Office is ready to inform you about the various receipts you can avail of. The list may mesmerize you, but do not get baffled. Consult with their experts if you have any queries regarding this.
Review your deductions
Standard deductions form essential parts of a tax return. Yet, many people often fail to claim the amount the authority may deduct from their taxable payout. ATO expatriates a list of deductible items on whose account a taxpayer can claim deductions. These include:
- Having an education along with jobs
- Work-related supplies
- Australian Taxation Office Interest.
- Travel for Business.
- Work Training Events
And numerous extra. We advise every taxpayer to check with the ATO to confirm the deduction level they are eligible for and the amount.
Put Account on Travel Expenses
Australian Taxation Office likes to encourage traveling for the taxpayers. The organization assures the tax office to reimburse every travel expense related to the taxpayer’s profession. If a person requires traveling because of his profession, the government is ready to reimburse even the meal cost during a night’s stay. However, he must prove that the employer does not reimburse these costs.
Contribute in charity
People who pay regularly offer contributions to organizations who work for different noble causes. Australian Taxation Office says these are not only good-doers, tax savor too. The Government of Australia asks its citizens to contribute to various charitable funds. These people enjoy lucrative tax incentives in turn.
You will have to mention the contribution you make each month and let your taxation authority calculate the annual contribution. The total donation will be deducted from your payable tax amount.