31 Oct 2019
BMT explains how to increase your cash flow by claiming depreciation
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A good tax accountant is worth their weight in gold. They are responsible for knowing all the deductions that you are entitled to – things that your annual Tax Pack may not list.
Then let your tax accountant decide what is relevant and what is not.
If you don’t have access to a specific tax tracking software package, ask your accountant exactly what they need from you and set up a spreadsheet to track the information. It’s a small step up from the shoe box!
If you don’t have health insurance, you may get slugged with another 1% Medicare surcharge. This may cost you more than having a health care package! So why not have the healthcare – and more money in your pocket? Talk to your accountant/agent to check your personal situation.
Financial institutions have to supply this information to the Tax Man – so be up front!
You won’t be earning a great deal of interest on your savings at the moment, so it could make a lot more sense to pay outstanding debts instead as they will be accruing a higher interest amount. You may also consider placing your savings in an offset account against your mortgage. This way the interest on your mortgage is calculated on the loan size less the offset balance. It’s like earning interest but without paying the taxes on it.
This includes the costs of getting to and from their office plus any calls or correspondence with them.
(Told you they’re worth their weight in gold!!!)
Your tax agent should also keep you advised of tax categories that you may not be aware of!
Do you think you qualify for the “older and wiser” category? Ask your accountant about the mature age worker offset. (The offset reduces the tax owing, not the taxable income.) To be eligible for the mature age worker tax offset you must be aged 55 or over at the end of the financial year, be an Australian resident for tax purposes and have earned a net income (from working) between $10,000 and $53,000. The maximum offset you may receive is $500.