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Money tip #5 – tax management

For the average individual, the tax system can be a confusing maze of different obligations and rules. Here are five tax tips to stay on top of your taxes.

1. Be organised!

Undoubtedly the most important rule of all is you must keep your finances neat and organised. Keep a folder of all receipts and invoices for that financial year in a safe place. You’ll need proof of any claims made if, God forbid, you are audited! This is especially true if you make any complicated payments or investments throughout the year.

2. Keep track of bank accounts and interest payments

If you receive interest payments throughout the year, keep record of when and how much.

3. Consider salary sacrificing

If you can afford to forgo some of your salary into your super fund, consider doing so – this will ensure you pay less tax on your overall salary while enjoying the benefits of accruing a nice nest egg.  

4. Keep records of tax-deductible items

This is especially true if you use a vehicle for work use. Keep a logbook as well as a catalogue of all the expenses accrued for that year. There are two ways in which you can claim expenses on your car and in keeping records for both you can select the most tax-effective means come tax time, rather than the easiest.  

5. Consult with an accountant

You may be missing opportunities to claim on tax and increase your refund come tax time. If your tax affairs are complicated, consider seeking the advice of an accountant or tax specialist to see where you can minimise your tax.

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.

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Published on: Friday, December 23, 2011

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