8 EOFY tax saving money tips

It’s that time of year again when we all have to do our tax return.

We all want to have a few more pennies in the piggy bank so we’ve put together 8 top tips on how to maximise the money you get back from the tax man.

1.    Understand what you can claim

Make sure you know what you can claim so you can maximise your return. For example if you drive to work you might be able to claim for the petrol; if you buy tools for your job you might be able to claim for those; or if you wear a uniform to work you might be able to claim for the dry cleaning. You can now use your bank statements to keep track of your expenses that you claim – too easy!

2.    See if you're eligible for the Private Health Rebate 

If you have private health insurance you might be able to get a rebate from the Australian Government to help cover the costs of your premiums, depending on how much you earn. You can visit the Private Health Government website to work out how much you are entitled to claiming.

3.    If you’ve got kids in school, see if you’re eligible for an education tax refund 

This refund is to help families with schools costs, so if you’ve bought education equipment or books you might be able to claim for these.

4.    Increase your super without reducing your salary 

If you’re still working and you’re over 55 you can add more to your super by putting your pre-tax salary into it, or using some of your super in a retirement pension (TRP).

5.    Use your properties value to offset your losses

If you’ve made money on your property and also have some poor performing shares, you should sell them before EOFY so your capital loss can balance the capital gain.

6.   Tax benefits with life insurance through super

If you have life insurance through your super you can claim tax deductions on your super. Claiming this could mean you can afford more cover to protect your family. However, there are both pros and cons of life insurance through super which you can read here.

7.    Compare and save

Cost saving shouldn’t be thought of just once a year at the end of June. It’s just as important to plan in advance to protect your family’s financial future, as it is to think about cost saving now. Life insurance and income protection do just this. Compareinsurance.com.au allows you to compare and save on your life insurance.

8.    Do you have an investment property?

If you have a property that you rent out and a mortgage on the house you live in, if you pay interest only on your rental property you’ll maximise your deduction. You also might be able to claim for Building Allowance Write-off, this is a 2.5% annual deduction for building costs, or structural improvements to the property.