Make voluntary contribution to the superannuation fund
An agreed contribution from the pre-tax salary can be used to provide benefits of a similar value such as a car, computer, tuition fees or superannuation. An annual income of more than 37,000 can be beneficial from this tax-effective strategy. Making voluntary contribution to superannuation can reduce the amount of tax paid.
For example: for an income of $90,000 before tax, the employee decides to redirect $10,000 into salary sacrifice super contributions, he/she will save $3,450 in tax, which the extra money goes into the superannuation fund. Read more about key super rates and thresholds.
A distinct space can be set up as home office, for example, a separate room and various expenses are deductible, including light, heat, and cleaning costs.
Expenses of property investments
Deduction list includes bank charges, agent fees, repairs and maintenance (for example: gardening, travel and pest control), land tax, interest on property investment loan, council taxes, water charges, insurance, and admin costs of lease. Whilst deductions can be claimed on repairs and maintenance, improvements are regarded as capital expenditure, which is deducted on a yearly basis. The definition of repairs is the ‘replacement of renewal of a broken part’ and improvements are ‘landscaping, insulating and adding a room’ by the ATO office.