1) Ask your accountant
As a contractor, it’s likely you are already working with an accountant to make the most of your finances. EOFY can be confusing business, so this is a good time to speak to your expert for help and advice. After all, accounting fees are tax deductible.
2) Claim as much as you (legally) can
When tax time rolls around, independent contractors can claim a number of deductions related to the cost of doing business. If you spent money yourself on something directly related to earning your income, weren’t reimbursed, and you have the record to prove it – you may be able to claim it. If you have a home office, certain items relating to the space are also tax deductable. This can include internet, electricity, phone bills and even furniture. You may even be able to claim the cost of training and courses related to your role, as well as magazine subscriptions. However, be sure to speak to your accountant before including these in your expenses.
Find out more about what you can claim:
3) On that note, keep your receipts
If you haven’t already been keeping your receipts, then you’re probably out of luck for 2019. But moving forward, your receipts will be useful when you file your taxes next year. Keep every receipt that you get over the course of a year. This is easy to do with a number of apps dedicated to helping you keep track of your receipts and expenses, such as Expensify, Pocketbook, or even your bank’s app. At the very minimum, just taking a picture of all your receipts and keeping them in a folder on your phone will make your deductions a lot easier come tax time next year.
4) Buy big ticket items now
For the majority of new car buyers, EOFY is the perfect time to shop around for a new car. This is the time when manufacturers slash prices and look to end the financial year on a high, with all the major brands vying for their share of the consumer dollar. EOFY purchases can also benefit business customers looking to improve their tax position, so it’s worth shopping around to see what deals are on offer.
5) Make tax time tech time
Car dealers aren’t the only ones offering big savings at the end of the financial year. This is also a great time of year to invest in new technology. Whether it’s a new laptop, tablet, phone, camera or PC, you’ll find plenty of discounted products that may be tax deductible. So not only will you be able to snag a great bargain, you could get it back in the form a tax deduction.
6) Donate to charity
Have you made any tax-deductible charity donations this financial year? If not, this is a great time to do it. Donating to charity may have positive repercussions at tax time. If you’re looking for a great cause, you can donate to our charitable foundation Talent RISE, which creates job opportunities for young people with barriers to employment. Remember, any donation over $2 is tax deductable.