How to Get a Bigger Tax Refund in 2024: Comprehensive Strategies for Australian Taxpayers

People in Australia are eager about the 2024 tax season as it is proceeding, and many would like to get the bigger tax credits they are eligible for. Understanding the strategies that can increase your tax refund is important, especially if you are a salaried employee, a small business person, or an investor. In this comprehensive guide, you will learn practical things you can do to optimise your 2024 tax return.

1. Stay Updated on Tax Law Changes

The best tip for improving your tax refunds is to familiarise yourself with all the changes in tax laws in Australia. The tax code is constantly evolving, and depending on deductions, credits, and rules that have been changed, your return may also be affected.

For 2024, some key updates include:

• Changes in Low and Middle-Income Tax Offset (LMITO): An important parameter of the current government’s stimulus has been changed, and there will be another boost for eligible taxpayers. However, LMITO has been discontinued in some instances, implying that it must be cautious about other allowances to compensate for this loss.
• Temporary Full Expensing Measure: This enables businesses to claim an immediate write-off for the total first-year depreciation cost of eligible depreciating assets, which is a great tax refund.
• Superannuation Changes: Changes in the legal regulations governing the limits and conditions for superannuation contributions could provide new tax-saving opportunities.

Understanding such changes and others can exploit emerging opportunities to lower tax bills and improve tax refunds. However, it would rather seek to maximise deductions for work-related expenses and other cost verticals in which it was directly involved.

2. Maximise Deductions for Work-Related Expenses

When boosting work-related tax deductions, nothing is more powerful than claiming every possible expense. Here’s how you can maximise your deductions:

1. Vehicle and Travel Expenses: Car users who use their cars for work may be privileged to claim fuel expenses, car maintenance, and more. Select cents per kilometer up to 5000 km or use the logbook method, which may take more time to record all the necessary details, but you can be paid a more significant amount if you travel most of the time for work.
2. Home Office Expenses: Due to the pandemic, working from home is becoming popular, and thus, most taxpayers can deduct home office expenses. There are also two options: the fixed rate method, which is 67 cents per hour, or the actual cost method, which is a percentage of the household bills. You may also declare occupancy expenses if you have a home office space, but be careful because this may also affect your CGT exemption.
3. Professional Development: Deductions are available for expenses to maintain or upgrade skills needed in one’s employment. This includes coursework, seminars, and other training that may be offered in the market.
4. Tools and Equipment: This implies that whatever tools, equipment or technology are required in your line of duty must be allowable. Ensure you are very sharp with your record-keeping and all your receipts.

3. Capitalise on Deductions for Investment Income and Business Income

Taxpayers with investment or business income have additional opportunities to reduce their taxable income through deductions:

• Interest on Investment Loans: If you have taken loans to fund income-generating assets, the interest on such loans is an allowable tax expense.
• Rental Property Expenses: Deductions available to landlords include mortgage interest, fees charged by property managers, and repair expenses.
• Capital Gains Tax (CGT) Discounts: When you sell an investment asset, you can deduct CGT working expenses against the profits, and you may also be able to get a 50% CGT discount if you hold it for more than 12 months.
• Business Expenses: Deduct legitimate business-related expenses, including stationery, electricity, rent, insurance, and training.

When properly completing the tax return forms, you may claim these deductions, reduce your taxable income, and get higher reimbursement.

4. Claim Offsets and Credits

Australia’s tax system offers various offsets and credits that can further boost your refund:

• Low and Middle-Income Tax Offset (LMITO): According to the Tax Institute, a tax offset amounts to $1,500, depending on income.
• Small Business Income Tax Offset: If you are a sole trader or a small business entity owner, you can lower your tax liability by up to 16% of your net small business income.
• Franking Credits:  If you obtained dividends from Australian companies, you can offset the corporate tax that has been paid on those dividends.
• Private Health Insurance Rebate: If you have private health insurance, you can get a government rebate, which can be deducted from your tax.

Check your circumstances to take all the offsets and credits you are entitled to.

5. Contribute to Superannuation

Superannuation contributions are not only a smart long-term financial strategy, but they can also reduce your taxable income, thereby boosting your tax refund:

• Salary Sacrifice: Some of these are that when you choose to contribute a part of your pre-tax income to superannuation, it results in a reduction in your taxable income and, therefore, your taxes.
• Personal Superannuation Contributions: Another way to reduce your taxable income is to make after-tax contributions to your super and claim tax.
• Government Co-Contributions: They may contribute up to $500 to low—and middle-income earners’ government contributions to their superannuation account.

Talk to a financial advisor or a tax consultant to learn about the annual restrictions and the qualification criteria.

7. Make Detailed Documentation and Records of all the Expenditures

Accurate record-keeping is essential for maximising your tax refund:

• Digital Records: Digitise paper receipts and invoices one keeps coming across or whatever they come across. If you misplaced any documents, bank statements or emails can be used to recover the lost document.
• Tax Agent Fees: Expenses incurred when you hire a tax agent to prepare the returns or for tax advice are allowable.

8. Seek Professional Tax Advice

There are many considerations to understand and possibly get the best result from this architecture of Australian taxes. A tax expert would be ideal to be asked since they will advise you based on their understanding of your situation. A tax professional can help you:

• Identify All Eligible Deductions: Double-check that you’re taking advantage of all deductions, credits and offsets.
• Avoid Penalties: Filing an incorrect return is risky and may result in many losses. If you do not want to engage this company for your full tax matter, a tax professional can assist you in completing the forms right and on time.
• Stay Updated: A tax professional is experienced in the changes in tax laws to ensure that you maximise your return.

Conclusion:

Here is how you can be in control of Your Tax Refund and Get a Bigger Tax Refund in 2024

By carefully reading and implementing these simple-to-follow strategies, you can claim a bigger tax refund in 2024 and retain your income.

From knowing when the tax laws change, claiming every available deduction, using superannuation strategically, and getting advice, you have everything at your fingertips to get the most out of your situation. You should start today and document every detail of your plan to increase the refund.

So, the principle “more luck than planning” is not applicable when winning a large tax refund; it all depends on a person and their awareness. The odds are that the 2024 tax filing season will be among the best experiences you will ever have.