Are you still looking for tax deduction to legally minimise your tax?
If you want to do that and beneficially improve the lives of others then the answer is a donation.
Donations will reduce your taxable income so you will pay less tax. They will also reduce your PAYG Instalments for next year.
Other benefits include:-
May reduce or avoid your paying S293 super tax (extra super contributions tax on high income earners).
May avoid losing part of the private Heath Insurance rebate.
May avoid you being charged Medicare Levy Surcharge.
May defer being assessed to make HELP repayments.
May retain part of the Family Tax Benefit Part A.
May qualify for the Senior Health Concession Card.
And of course the real benefit is knowing you have improved the lives of others.
And here are some common traps to avoid:-
Raffle tickets and the like don’t qualify as a donation – a donation is where you give but receive nothing.
There is no GST on donations.
Make sure you make the donation in the right name. They can’t be claimed by individuals with a net loss. And they should be made by the higher income earner of the household to reduce the after tax cost (or fund other donations).
And what a great time it is to make a donation. Whilst the economy has recovered surprisingly well and share and property prices are surging, many are doing it tough. Food banks and the like are reporting record demand. And please view the following video and link for the wonderful ways that Just Peoples are supporting those in less fortunate countries around the world.
Want to know more – click here
At MRS, we will spend today planning for your success.