We’re not far in to the new financial year, big changes are happening in the market place with stimulus packages and benefits, so how can you maximise your tax return?
Get further ahead
I’m always planning because a dollar saved is two dollars earned.
I’m looking to retain my wealth and cashflow while minimising my tax.
Ask yourself what you can be doing in the 12 months leading up to the EOFY, rather than frantically buying things as we approach June to maximise your tax position.
Having a well-defined strategy is important.
What things can you do to prepare?
1. Make sure you are deducting all the necessary items you can. I see people on $100,000 a year that end up paying tax on $50,000. I’ve seen people on $250,000 that end up paying tax on $80,000. You can make large tax deductions without having to buy a negatively geared property or a new property. So it’s important to have the right strategy where your assets are helping you reduce your tax while you build the larger portfolio.
2. Get the right team around you, starting with an accountant who understands your plans, goals and strategy. You don’t want to deduct too much because the biggest regret for some people is that they’ve not paid much tax and now they can’t get finance from lenders. It takes a very good accountant to be able to maximise your deductions AND your borrowing capacity so that you can continue to purchase higher assets.
3. Make sure you’ve got your depreciation in place in order to offset. You might have a property that’s built 15-20 years ago. There could be the ability there to claim the building breakdown.
Use the return
When I was an employee I used to go and claim my taxes the first day that I could so that I’d have extra capital in my pocket to go and purchase more assets.
A lot of people may not realise that they have got a new property deposit coming in the form of a tax return.
If you’re getting a $25-$30,000 tax return that’s enough for a deposit on another property.
If you need help it’s not too late – contact us below!