9 Top Tips To Reduce What You Owe The ATO in 2019

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9 Top Tips To Reduce What You Owe The ATO in 2019

The law requires all Australians to pay tax for every income. Income tax is deducted from salary, wages and investments, as well.

However, taxpayers can pay less tax by claiming tax deductions from the Australian Tax Office (ATO). Of course, everyone would like the idea of paying less tax and keeping more money in their pockets.

Below are some ways to reduce what you owe the Australian Tax Office in 2019:

Keep Tax Records

When claiming tax deductions from the ATO, ensure that you have all the receipts in place. This will help you in answering some of the questions that you might be asked about your tax deduction claim.

Do you want a greater tax refund? Keep track of all the receipts, so you remember every possible deduction that you can claim.

Donate Money

Claim a tax deduction every time you donate more than $2 to a registered charity.

Australians can claim a tax deduction for donations made to charity. However, ensure you get a receipt after donating and use it to claim tax deductions with the ATO.

Spend Money

Expenses related to earning an income can be claimed for tax deductions.

Keep a receipt every time you have to spend money on your work. This applies even if the item purchased is to be used both at work and at home.

Hire an Expert

Some people might not know what to claim and what not to claim. Consult a tax agent or an accountant to advise you on every way you can deduct from your taxes.

Tax agents are always up to date with the changing tax legislation. Thus, they will help you get all possible deductions to decrease your tax debt.

Tax Preparation Expenses

Australians are obliged to pay taxes for every salary, wage and investment income.

However, they have the right to claim deductions for the expenses they incur while trying to pay these taxes.

Education Costs

Just to make it clear, not all self-education is eligible for a tax deduction. If you further your studies for the sake of your work, however, then you can comfortably claim these deductions.

Individuals who get an education with scholarships that are tax bondable can also claim these deductions.

Job Expenses

You can claim tax deductions for buying assets that aid you with work, for example, a laptop.

If you use the asset half of the time at home, then you can only claim a 50 percent reduction of the total cost of the asset.

Home Office Expenses

Those who use their phone to work while at home can claim their bills as tax deductions. However, supporting documents will be needed for the ATO to approve the claim.

Employees who work from their houses can claim tax deductions for the costs they incur while working at home.

Laundering Work Clothes

Australian employees can claim a deduction from their income taxes for the money they spend on cleaning their work garments.

However, documents supporting the purchasing and cleaning of clothes have to be provided.

Image via Pixabay/Pixabay license
David Anthony

David has a background in Journalism and small business. David writes on culture, education and business. He also writes for Relevance and Medium.

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