Tax Time 2022 - Actions That Can Be Taken Now To Deliver A Bigger Tax Refund.
ASF TAKEAWAYS: June typically remains the most important month of the financial year, allowing you to potentially boost your upcoming tax refund by thousands of dollars.
During June, you should consider making extra work-related purchases, tweaking investments and expenses, and putting extra money into superannuation which will provide long-term compounding benefits as well as short-term benefits in July through a bigger tax refund.
Home Office Expenses
With the trend towards hybrid work models and the requirement of working from home, more deductions can be claimed for expenses related to working from home.
You can invest in computers and accessories, monitors, ergonomic desks, chairs, printers, and mobile phones for supporting you working from home and claim those as a tax deduction.
In addition, the ATO allows us to claim 52 cents for each hour that you work from home. This claim covers running costs such as electricity and cleaning but allows separate deductions for things such as telephone and internet expenses, stationery, and depreciation of electronic equipment.
The annual concessional cap for super contribution is $27,500 for 2022, which includes salary sacrifice and employers’ compulsory contribution. In addition, where your total super balance is less than $500,000 as of 30 June 2021, you can carry forward all the unused concessional contributions since the 2019 financial year and use them in 2022 (in fact you can carry these forward for 5 years).
If you have excess cash and are close to retirement age (i.e., 60 years old), we recommend that you connect with us now (before 15 June 2022) so that we can calculate how much of the unused concessional cap is available.
JUNE TAX TACTICS
Consider spending on work-related items before 30 June 2022.
Check investment gains and losses and see if you should sell loss-making assets before 30 June to offset other capital gains elsewhere
Speak to ASF to check on the tax implications of making additional super contributions.
Bring forward investment-related expenses that are tax-deductible, such as prepayments of interest.
If you want more details on what to do before 30 June 2022, please reach out to the ASF team.