101 Ways to Save Money on Your Tax - Legally! 2019-2020

by Raftery, Adrian

• ISBN13: 9780730371472
• ISBN10: 0730371476
• Edition: 9th
• Format: Paperback
• Copyright: 2019-07-01
• Publisher: Wiley

Summary

An essential money-saving resource for every Australian who pays tax – fully updated for the 2019-2020 tax year.

101 Ways to Save Money on Your Tax – Legally! is the tax guide every Australian should own. Step-by-step instructions from Adrian Raftery, akaMr. Taxman, will show you how to leverage every available deduction to lower your tax bill and keep more of your hard-earned money. Thoroughly updated for the 2019-2020 tax year, this new edition gives you the latest information on changes to the tax codes and how they affect your situation.

Tax laws are constantly changing, but you don’t have to pore over piles of legislation to file your tax accurately and completely – that’s what Mr. Taxman is here for. Don’t let yourself become one of the people who overpay, find out what you actually owe and prepare for even better savings next year. This guide removes the stress and confusion from tax season and helps you file on time with no mistakes. Whether an individual, married couple, investor, business owner or pensioner, this guide will help you:

• understand how your taxes have changed for 2019-2020
• reduce your tax bill, potentially by $100s or $1000s
• learn plenty of expert tips, avoid tax traps and find the answers to frequently-asked questions
• explore topics such as medical expenses, levies, shares, property, education, business and family expenses, superannuation and much more
• protect yourself from errors, audits, overpayments and other common problems.

When it's time to file your tax, turn to 101 Ways to Save Money on Your Tax – Legally! Maximise your deductions and get the best possible tax return. Don’t pay more than you have to, Mr. Taxman is here to help.

Author Biography

DR ADRIAN RAFTERY has over 25 years of experience as an award-winning accountant and tax expert. As one of Australia's leading tax and finance commentators, Adrian regularly appears on TV and contributes to magazines and newspapers. Find out more at www.mrtaxman.com.au.

Table of Contents

About the author xi

How to use this book xiii

Introduction xv

Part I You and Your Family 1

1 Marriage 2

2 Income splitting 4

3 Dependant (invalid and carer) tax offset 6

4 Children 8

5 Payments for new parents 10

6 Child care 12

7 Low-income earners 15

8 Senior and pensioner tax offset 17

9 Other government benefits 19

10 Family breakdown 22

11 Death 24

12 Family trusts 26

Part II Your Employment 29

13 Car usage 30

14 Methods to claim car travel 33

15 Travel 35

16 Uniform 37

17 Home office 39

18 Other work-related deductions 42

19 Keeping those receipts 44

20 ATO hit lists 46

21 Redundancy 49

22 Working a second job 51

23 Salary sacrifice 53

24 Fringe benefits 55

25 Living-away-from-home allowance 59

Part III Your Education 63

26 Claiming self-education expenses 64

27 The $250 threshold 66

28 Self-development courses 68

29 Student loans 70

30 Austudy and ABSTUDY 78

31 Scholarships 80

32 School building funds 82

33 Education savings plans 84

Part IV Your Investment Property 87

34 Negative gearing 89

35 Interest 91

36 Depreciation 94

37 Low-value pooling 96

38 Repairs and maintenance 98

39 Borrowing expenses 100

40 Legal expenses 102

41 Other rental property deductions 104

42 Foreign investment properties 106

43 Capital gains tax 108

44 PAYG withholding variation 110

45 Property genuinely available for rent 112

Part V Your Shares 115

46 Dividends 116

47 Franking credits 119

48 Dividend reinvestment plans 121

49 Shares owned by low income earners 122

50 Borrowing to buy shares 125

51 Other share deductions 127

52 Capital gains tax on shares 128

53 Realising capital losses 130

54 Inheriting share portfolios 132

55 Share traders versus share investors 134

56 Rights and options 136

57 Employee share schemes 138

58 Share portfolios within self managed superannuation funds 140

59 Cryptocurrency 142

Part VI Your Superannuation 147

60 Contribution limits 150

61 Transfer Balance Cap 153

62 Downsizer Contribution 156

63 Compulsory employer contributions 159

64 Salary sacrifice 161

65 Division 293 tax 164

66 Super co-contribution 166

67 Transferring foreign super 169

68 Self managed superannuation funds 171

69 Buying property within SMSFs 174

70 Gearing through a super fund 176

71 Accessing your super 178

72 Transition to retirement 180

73 Account-based pensions 182

74 Death benefits 184

75 Lost or unclaimed super 185

Part VII Your Business 189

76 Choosing the right business structure 191

77 Tax obligations 195

78 Record keeping 197

79 Deferring tax 200

80 Trading stock 202

81 Bad debts 204

82 Home-based businesses 205

83 Sharing Economy 208

84 Employing people 210

85 Tax concessions and offsets 213

86 Selling or closing down 217

87 Personal services income 219

88 Non-commercial losses 220

89 Franchising 221

Part VIII Miscellaneous 223

90 Overseas income 223

91 Getting a great accountant 226

92 Lodging your tax return 228

93 Amending returns and objecting to assessments 231

94 ATO data matching 233

95 Problems paying your tax 236

96 Medical expenses tax offset 237

97 Levies 240

98 Zone and overseas forces tax offsets 242

99 Tax-effective investments 244

100 Tax planning as a 365-day process 246

101 Just do it! 247

Glossary 251

Bibliography 267

Index 269