Financial Year 08-09: Tax guide
IT'S that time of the year again.
So start searching behind the couch for those receipts, wade through a lake of paperwork to find those invoices, sharpen those pencils, grab that calculator and strap on those thinking caps.
This is your guide to the End of Financial Year.
To make it a little easier, here's a few tips from the Australian Investments and Securities Commission.
There's also a few tips on how to use your tax return wisely.
Reducing credit card debt
One of the best ways to have more money, is to pay off your credit card debts, and perhaps all if possible.
Credit cards are a bad way to wittle award your hard earned dollars, because they charge a high rate interest. Making only the minimum payments on $1,000 can take over 13 years to pay off.
Boosting you super
If you can afford it, another good way to use your tax return is to invest it into your superannuation fund. Contributing more than nine per cent can dramatically boost your savings.
You may also be eligible for a Government co-contribution. To find out if you're elligible for the Government co-contribution visit www.ato.gov.au or call 13 10 20.
Prepare for Christmas 2009
It never hurts to be too early, so why not start saving your tax return now for those expensive time ahead.
ASIC recommends three different ways to save your tax return.
- Invest your cheque into a high-interest savings account and watch it grow over the next 6 months. you'll be surprised how much you can make by letting it sit there, untouched.
- Buy Christmas gifts now and hide them away until December 25. that way you'll be able to take advantage of mid year sales..
- Lay-by your presents and use most of your refund to eat away at the cost. that way you can easilly manage come Christmas time.
Whiel you may be able to claim interest on loans as a tax deduction, borrowing can also be hazardous. Although borrowing can help you get what you want now, it doesn't help you save money.
Remember getting into debt is easier than getting out of it.
For More money tips checkout ASIC's consumer website FIDO.
Take advantage of the stocktake sales. It's the best time of year to buy those bits and pieces you really need.
Almost everything at the big department stores is on sale, with reductions ranging anwyhere from 10 per cent off to 50 per centacross most departments.
Myer's Stocktake sale finishes on the 5 July, 2009.
David Jones' Half Yearly Clearance wraps up on June 7, 2009.
Read more ...
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ATO 'needs to deter' tax dodgers