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7 Tax Tips to Follow Before Filing Your Tax Return | FastLane Tax & Accounting Melbourne

1) Consult With Your Tax Advisor

At FastLane Tax & Accounting Melbourne, we stress the importance of consulting with your tax advisor in Melbourne. “Your advisor can help you navigate recent changes in tax rates and reporting obligations,” explains Jimmy from our team. “Keeping up with updates, such as the introduction of Director IDs and changes to the superannuation guarantee threshold, is vital for accurately assessing your tax position.”

2) Develop a Tax Plan

If you’re working with a tax agent in Melbourne, remember that the lodgement deadline is extended to May 15 of the following year. However, if you’re filing independently, aim to complete your return by October 31.

To optimize your tax return, consider these strategic steps:

  • Consolidate Your Expenses: Prepaying costs such as insurance, rent, and professional subscriptions can allow you to claim up to 12 months of the following year’s expenses in your current tax year.
  • Utilize Depreciation Measures: Although temporary full expensing ended on June 30, 2023, it’s essential to understand how previous measures might still impact your deductions. Check the ATO website for more information on depreciation measures in Melbourne.
  • Review Debtors: For those using accrual accounting, reviewing and writing off unrecoverable debts can help you claim deductions for income you can’t recover.

3) Apply for Government Subsidies and Assistance Programs

Despite the challenges of running a business, you can benefit from various government tax assistance programs in Melbourne. “There are numerous state and federal grants available to support businesses,” notes Jimmy. “Even with the focus on COVID-19 relief, many valuable programs remain.”

Explore these options:

  • Pandemic Leave Disaster Payment: Supports businesses unable to earn income due to COVID-19 isolation or quarantine requirements.
  • Instant Asset Write-Off: Provides an immediate deduction for the business portion of the cost of an asset in the year it’s first used or installed.
  • Backing Business Investment: Allows eligible businesses to claim deductions at an accelerated rate for the cost of new depreciating assets.

4) Keep Accurate Records

Maintaining thorough and accurate records throughout the year is essential. This includes tracking all income and expenses, keeping receipts, and documenting any business-related purchases. Proper record-keeping not only ensures compliance but also maximizes potential deductions for your Melbourne tax services.

Tax Return

5) Review Your Superannuation Contributions

Ensure that your superannuation contributions in Melbourne meet the required thresholds and consider making additional contributions if beneficial. This can help you take advantage of tax benefits associated with superannuation.

6) Check for Changes in Tax Legislation

Tax laws frequently change, and staying informed is crucial. Regularly review updates from the ATO or consult with your tax advisor to ensure you’re aware of any new regulations that might affect your tax return. Staying updated with tax legislation in Melbourne is key.

7) Plan for the Future

Consider your long-term tax strategy and plan accordingly. This could involve tax planning in Melbourne for upcoming financial years, setting aside funds for tax payments, or investing in tax-efficient assets. By following these tips, you can better prepare for tax season and ensure you’re making the most of available opportunities. For personalized advice and assistance, contact FastLane Tax & Accounting Melbourne for expert guidance on business tax deductions in Melbourne, superannuation contributions, and more.