With the tax year end just around the corner, now is the time to see what you can do to save on tax for FY2024.

Please contact us if you would like to discuss any of the information below. For information on business tax savings CLICK HERE 

Personal Tax – FY2024

Lower personal tax rates apply from 1st July 2024. So current year tax deductions have a larger saving than next year’s deductions.

Donations

Donations to deductible gift recipients (DGR) organisations can be claimed as a tax deduction where you hold a receipt from the entity.  The receipt or third party documentation must show the payment is to a DGR and identify the amount of the donation or gift.

Roadside bucket donations up to a total of $10 may be claimed without holding a valid receipt.  Purchases of raffle tickets, fundraising chocolates or other payments where you receive a benefit in return are not eligible donations, even if paid to a DGR.

The Australian Business Register lists organisations that are deductible gift recipients – CLICK HERE TO CHECK

Claiming Home Office/Working from Home Expenses

The Tax Office has recently updated its guidance in relation to claiming home office expenses. There are now two ways you can claim home office expenses. Under both methods, to be eligible to claim home office expenses, you must:

  • incur additional running expenses as a result of working from home
  • be working from home to fulfil your employment duties, not just completing minimal tasks
  • keep records at the time you work to prove you incur the cost.

To calculate your working from home expenses, you can use the revised fixed rate method or the actual cost method. Remember, you can only claim the work-related part of an expense.

Revised fixed rate method :

The revised fixed rate method allows you to claim 67 cents per hour you work from home for the expenses listed below. You no longer require a dedicated home office to use this method.

Expenses included in the revised fixed rate are:

  • data and internet
  • mobile and home phone usage
  • electricity and gas
  • computer consumables (e.g. printer ink)
  • stationery.

You can’t claim a separate deduction for any of the expenses the revised fixed rate includes.

You can claim a separate deduction for:

  • the decline in value of assets used while working from home, such as computers and office furniture
  • the repairs and maintenance of these assets
  • cleaning (only if you have a dedicated home office).

Actual cost method :

The actual cost method allows you to claim a deduction for the actual expenses you incur as a result of working from home. You may be able to claim a deduction for each of the expenses you incur, such as:

  • data and internet
  • mobile and home phone usage
  • electricity and gas
  • computer consumables (e.g. printer ink)
  • stationery
  • the decline in value of assets used while working from home, such as computers and office furniture, as well as any maintenance and repairs of these items
  • cleaning (only if you have a dedicated home office).

For further details refer to the ATO Fact Sheet.

Superannuation Contributions

You can contribute into super as a concessional contribution up to $27 500 (including your employer contributions).

In order to claim the non-employer contribution as a deduction (your personal contribution), you would need to give your fund a form called “a notice of intent to claim” and receive an acknowledgment letter from your fund. Ensure any contributions are made by the 21st June 2024 so that they are received in your super fund by 30 June 2024.

These contributions will be taxed at 15% in the super fund if your income is less than $250 000 or at 30% if above this amount.

Carried Forward Contributions to Super

If your super account balance is less than $500 000 and you haven’t used the full amount of your contribution cap in previous years starting from 2019, you can use the previously unused amounts for up to five years. ie You can contribute more than $27 500 into super.

For example if you only contributed $15,000 of the maximum concessional amount of $27,500 in the 2023 year, you will be able to contribute an extra $12,500 (as well as your $27,500) in the 2024 year.

You can find out your unused contributions through your My Gov account or call us.

Spouse Super Contributions

If your spouse’s income is less than $37 000 p.a and you make a contribution into their super account of up to $3,000, you will receive a tax offset of $540. This offset reduces to nil as their income increases to $40, 000 p.a

Government Co-Contribution to super

If you earn less than $58,445 and make an after-tax contribution to your superannuation fund, then the government will also contribute.

The amount you will receive depends on how much you contribute and how much you earn. If you earn less than $43,445, then for every dollar you contribute, the government will add 50c, up to a maximum of $500 (i.e. add $1,000 the government will add $500). As your income increases, the co-contribution rate decreases until your income is $58,445 when no co-contribution is made.

If your personal contribution is:    $1000 $500
If your annual income is: Your super co-contribution will be:
Up to $43,445 $500 $250
$46,445 $400 $200
$49,445 $300 $150
$52,445 $200 $100
$55,445 $100 $50
$58,445 (or more) Nil Nil

 

At least 10% of your income needs to be from employment or business income and you must be under 71 years of age.

Motor Vehicle Expenses

In order to claim motor vehicle expenses against your salary income, you would need to prove that you have been travelling for work purposes.

You can claim using either of two methods: cents per kilometre (for up to 5,000km of work related travel) or log book.

Log Book Method:

If you want to claim motor vehicle expenses using a logbook, ensure you have a valid logbook prepared within the last five years.  The logbook should record details of when you are travelling for work.

A valid logbook can be an eletronic version or a paper version.  Regardless of which one you choose, it must record ALL of the following details:

  • The date on which each journey begins and ends.
  • The odometer readings at the start and end of each journey.
  • The kilometres travelled.
  • The purpose (or description) of each journey. The word “business” is not sufficient.
  • Entries must be made at the end of each journey.

You need to keep a logbook for at least 12 continuous weeks and it should be broadly reflective of your travel.  You should also record your odometer reading at the start and end of the logbook period.

The percentage of work travel would be calculated from this record and applied to the total of your motor vehicle expenses throughout the year and claimed as a deduction.

Cents per Kilometre Method:

An alternative method where no log book is needed, is to simply claim up to a maximum of 5 000 km business travel, based on a reasonable estimate, using the cents per km method. The km claim must be based on diary notes or other documentation. For 2024, 85 cents per km can be claimed.

Prepay or Bring Forward Expenses

If you own investments such as shares or property, and you pay up to 12 months in advance of interest on a loan or other expenses before 30 June 2024, you will be able to claim these amounts in the 2024 tax year.

You may also prepay other expenses like property repairs, memberships, subscriptions or journals.

Income Protection Insurance Premiums

If you are unable to work as result of sickness or an accident, Income Protection Insurance will replace a significant percentage of your salary. These premiums are tax deductible and protect your family’s lifestyle.

These premiums can also be prepaid for up to 12 months and claimed as a deduction in 2024.

CryptoCurrency Capital Gains & Losses as an Investor

Ensure you are able to calculate any gains or losses on cryptocurrencies during the year.

Even if you have only made capital losses, you still need to disclose these losses on your tax return.

Defer Investment Gains

Arrange for the contract date of sale of a Capital Gain asset to occur after 30 June 2024 as then the gain will fall into the 2024 tax year.

The contract date and not the settlement date is the key date for working out when a sale occurs.