Are you a citizen or just a visitor and wondering how to save on taxes in Australia? Then, you don’t
have to worry. Below are some of the most practical and legitimate methods on how to save on taxes
in Australia. These methods will help you keep more money in your wallet;
1. Keep good tax records:
This is the number one method on how to save on taxes in Australia and in most other parts of the
world. Several people miss deductions they would have claimed just because they could not keep good
tax records. Keeping good tax records requires that you keep receipts of all tax deduction. By keeping
these receipts you can claim every expense you are entitled to.
2. Be charitable:
Being charitable is one of the best ways to save on taxes. Giving to registered charity is a win-win
situation. It helps you to do something good for someone and at the same time save some money.
Every donation made to a registered charity organization is tax deductible. When you make a donation,
you will get a receipt. Ensure to keep the receipt so when it is tax-paying time you can fill the donation
amount in the donations sections.
3. Seek the advice of tax professionals:
We are not all knowledgeable in tax-related matters and it is very common to miss out on deductions.
Hiring a tax professional will not just save you time when seeking a refund. It will also improve your net
payable or tax refund. Tax professionals will easily spot and correct mistakes that may cause a delay in
a tax refund.
4. Be self-employed:
One of the most practical ways of saving on tax in Australia is to be self-employed. This is rather than
being a salaried or government worker. Salaried or wage-earning is the least advantageous when it
comes to tax-paying in Australia. Being self-employed or starting a business in Australia is not as hard
as many may think. The most important element is the drive and will to succeed. Registering a business
name takes only about a day.
When you are self-employed, you will be paying your income taxes
annually. Rather than what is obtainable in employees who pay weekly, fortnightly or monthly.
With this money in your pocket, you can reinvest it in the business or earn interest on it. When you are
also a sole trader, you can avoid certain business costs and can afford certain tax benefits.