Why Plan for Tax Time?

Planning for tax time ensures you are prepared for either scenario—a refund or a tax bill. By taking a strategic approach, you can make the most of any refunds and manage any bills effectively. At Leading Advice, we are here to assist you every step of the way, making tax time less stressful and more beneficial.

Here are some tips for every Australian to consider when it comes to tax time.

Before You Lodge Your Individual Tax Return

Review Super Contributions:

• Contact your super fund to check if you have made any after-tax (non-concessional) contributions for the financial year. Depending on contribution limits, there may be an option to claim some of these contributions as a tax deduction.

Income Protection Insurance:

• If you personally paid premiums for an Income Protection insurance policy, these can be tax-deductible. Contact your financial planner or insurance provider to find out the total premiums paid for the financial year.

Gather Receipts:

• Collect all relevant receipts and understand what can be claimed. This task may seem tedious, but it’s essential. There are different allowances for those who worked from home during COVID-19, so you may be able to claim items you previously couldn’t. For more information, visit the ATO website.

After You Lodge Your Individual Tax Return

If You Receive a Refund:

• Plan the best use of your refund. Consider boosting your emergency fund, paying off debt, investing, or adding more to your super fund. It’s easy to spend the money on daily living, but having a plan helps you maximize this opportunity to get ahead.

If You Have a Tax Bill:

• Contact the ATO: Inquire about payment plan options.
• Talk to Your Employer: Ensure there were no errors on their end that resulted in the tax bill.
• Plan for Next Year: If the tax bill isn’t due to an employer error, start planning for the next tax year. Divide the amount owed by 26 to set a fortnightly savings goal. This proactive approach helps you be better prepared for potential tax bills in the future.