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Tax tips - how to reduce your bill

I have had a pretty good year, income-wise, but am concerned that I might miss out on a tax refund and might even have to pay tax! Have you got any last minutes tax tips that could reduce my potential tax bill?

You can consider some of these tips, but it would be smart to get an accountant to give you some help.

Agribusiness investments generally have 100 per cent tax deductibility, but they must have an ATO Product Ruling. They give a good tax deduction, but don’t go for that reason only. Make sure the product is in demand and it represents a good investment. Do lots of research and get advice. Some are shocking duds, so tread with care.

If you can delay someone paying you income that can help and if you can prepay an expense such as interest on a tax deductible piece of equipment or car that give a positive tax outcome.

If you have shares, you might have a capital loss you could use to reduce your tax. You would have to sell the shares before 1 July.

Putting more money into super can be a tax effective strategy and also you could look at the super co-contribution. Also, have a look at salary sacrificing into more super.

You can prepay some expenses for next year this year, which works well if next year is expected to be a lower income year for some reason.

And finally, there are lots of deductions and strategies that can reduce your tax legally. I recommend finding a great accountant as their fees are a tax deduction or at least trawl the ATO website for tips to make sure you pay the right amount of tax that will make you smile come refund time.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Thursday, January 07, 2010

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