Make the most out of your 2019-20 tax return

May 4, 2020

You don’t need to wait until 30 June to start preparing for tax time. There are things you can do today that will make life easier and ensure you are ready for your tax return.

Superannuation – adding to your superannuation fund directly from your gross (pre-tax) salary can be an easy and tax effective way to top up your super. Check your contributions for the current financial year and consider adding extra before 30 June; these contributions are subject to the concessional contributions cap of $25,000 in most situations so phone the ATO or visit their website for specific advise regarding your situation.

Gather your financial statements – prepare any statements relating to all forms of income, if you’ve sold any investments you’ll need all the data pertaining to the purchase and sale of the investment. If you have any tax deductions relating to your investment expenses make sure you prepare all supporting documentation.

Itemise your receipts – what you need will depend on what deductions and claims you will be making. This includes charitable contributions receipts and work related expenses. The ATO has provided a great list to help guide you on what is able to be claimed.

Private Health insurance – Whether you already have PHI or not now is the time to review your situation. Both individuals and families on incomes above a certain level may be liable to pay the Medicare Levy Surcharge (MLS) for any period during the financial year that they did not have appropriate private health cover. The MLS is in addition to the 2% medicare levy. By taking out cover, and reviewing your current cover you can save money at tax time and on your yearly premiums ensuring you and your families specific needs are covered.

Set your 2020-21 financial goals by preparing a new budget. A good financial adviser can help you set your financial goals and create a plan to achieve them. Consider selecting a certified independent financial adviser.