How do you reduce your tax?
If you are entitled to tax deductions or tax offsets you may be able to reduce your tax. Tax deductions are applied before tax is calculated, while tax offsets are applied after tax has been calculated. You may be entitled to tax deductions on work-related expenses, charity donations, self-education expenses and cost of managing your tax (e.g. hiring an advisor). Tax offsets are applicable to low income earners, taxpayers with a dependent relative, senior Australians and pensioners, the taxable part of your superannuation income stream and net medical expenses over a certain amount. Medium and high income earners can also reduce tax through salary sacrificing – when you put a sum of your pre-tax income towards a benefit before tax. For more information feel free to give us a call.