Simple Tax Tips for Australians
Well the weather is terrible today here in Sydney, so I thought it would be great to discuss some simple tax saving tips as what better thing to do then attack one of the most boring topics on one of the most boring days? Ok, I take that back, if you are like me you will actually really enjoy learning how to save money on tax and get the most out of these income tax tips.
Now lets start saving some money on tax, and i suggest those of you who are good with tax to submit a comment on this article to share your income tax tips.
Income Tax Tips
Here are a few items that I suggest people investigate further about deducting. These deductions are quite common yet often overlooked by people looking to save on tax. Read below for the easiest tax deductions;
- Work related expenses. Travel, Eating, Accomodation – keep those receipts.
- Self Education. Books on topics you work in, eg; Marketing books and courses.
- Travel expenses
- Gifts and donations are tax deductable. I suggest making a decent donation at the end of each year to a charity in order to get into a lower tax bracket.
- Remember you can claim the depreciation in your assetts. Eg; your laptop, your car etc.
- Claim any losses you made in investmentsto avoid capital gains tax.
- Get private health care insurance to save on medicare levy.
Income Tax Rates for 2009
| Taxable income | Tax on this income |
| $0 – $6,000 | Nil |
| $6,001 – $34,000 | 15c for each $1 over $6,000 |
| $34,001 – $80,000 | $4,200 plus 30c for each $1 over $34,000 |
| $80,001 – $180,000 | $18,000 plus 40c for each $1 over $80,000 |
| $180,001 and over | $58,000 plus 45c for each $1 over $180,000 |
Get into a smaller tax bracket
I suggest that you find out your taxable income via a Tax Accountant, and then make a donation to a charity if you are close to dropping into the lower tax category. Eg; If I earnt $81,000 for the year, it may be worth while donating $1000 to charity so that I get into the lower tax category above, thus savings a lot of money on tax.
Tax Tips for Tradies
Tradies stand to save the most money on tax because they have the options of many deductions and depreciating value costs. I suggest that you read this article I wrote in the past about saving money as a tradesmen, which actually also applies to people who are contractors as well. Read the article by following this link; Tax deductions for Tradies.
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