As the financial year draws to a close our minds turn to tax planning and wrapping up any of the yearly compliance. We have 4 fundamental values and one of them is helping to legally minimise your tax so you keep as much of your hard-earned money as possible.

At Inspire we understand the importance of effective tax planning, not just for businesses but also for individuals and families. That's why we've created a guide featuring 12 powerful strategies to help you save on your taxes this year.

Whether you're a small business owner, an employee, or an investor, our guide offers practical and actionable insights to get the best tax outcome.

1.     Maximise your superannuation contributions: Consider making concessional (before-tax) and non-concessional (after-tax) contributions to your superannuation fund to reduce your taxable income and benefit from tax concessions.

2.     Claim all eligible deductions: Ensure you claim deductions for work-related expenses, such as professional memberships, subscriptions, home office expenses, and self-education costs.

3.     Claim depreciation: Review your depreciable assets and claim the appropriate depreciation deductions for items used for work or in your business or investment activities.

4.     Donate to charities: Make tax-deductible donations to eligible charities and claim the deduction in your tax return.

5.     Prepay expenses: If you have costs coming up in the next financial year, consider prepaying them before June 30 to claim the deduction in the current year.

6.     Making sure you have the appropriate cover in place to avoid excess taxes such as Private Health Hospital cover to avoid the Medicare Levy Surcharge.

7.     Look at other salary sacrificing benefits such as laptop or novated lease vehicles.  If you work in healthcare or for a not-for-profit make sure you are maximising your tax-free salary sacrificing benefits.

8.     Manage capital gains and losses: Consider selling underperforming assets to offset any capital gains with capital losses or defer the sale of assets with unrealised gains until the next financial year.

9.     Invest in income-producing assets: Consider investing in assets that generate income eligible for tax concessions, such as rental properties or shares that pay franked dividends.

10. Utilise small business concessions: If you operate a small business, take advantage of concessions like the instant asset write-off and simplified depreciation rules.

11. Make sure your structures and ownership are setup to give you the flexibility to achieve the best result. For example, being able to split income with family members to get income taxed at the lowest rate available in your situation.

12. Seek professional advice to ensure you are taking advantage of all available tax-saving strategies and complying with the latest tax laws and regulations.

It's important to remember this is a general guide and that the tax landscape is ever-changing so some strategies may not be applicable or suitable for your specific circumstances. Therefore, it is always recommended to seek professional advice to ensure you pick the right strategies and that you are implementing them to the best of their availability.

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