17 Jun Optimise your finances: 9 tips to boost your tax return in 2024
Are you feeling overwhelmed by the government’s never-ending tax changes? Keen to get across things – sooner rather than later? Thankfully, the tax specialists at BellchambersBarrett are here to help. Here are our top 8 tips to boost your tax return this financial year!
1. Put extra into your super account
Topping up your super before the EOFY is a never-fail tip. But this year, you can go even further.
Any personal concessional contributions (no more than $27,500) in your super account before 30 June 2024 may entitle you to a tax deduction – while also increasing your super balance. However, this will depend on your circumstances and eligibility.
And here’s more good news: From July 2024, the concessional capped amount (the maximum before-tax contributions you can make) will increase from $27,500 to $30,000 per year.
Meanwhile, the non-concessional contributions cap (the maximum after-tax contributions not subject to extra tax) has increased from $110,000 to $120,000. But this only applies to those with less than $1.9 million super balance as of 30 June of the previous year.
2. Roll over your contributions
If you haven’t used the contributions caps mentioned above, you might be eligible to ‘roll over’ your amount for the following financial year.
To be eligible for catch-up concessional contributions, you must have a total super balance of less than $500,000 on 30 June of the previous financial year. You can only carry totals forward from 1 July 2018.
Unused cap amounts can only be carried forward for 5 years before they expire. And if you’re 67 or over, you’ll need to complete the ‘work test’. (To pass this test, you must be employed during a consecutive 30-day period for at least 40 hours during the financial year you made the extra contributions.)
3. Put more contributions in your spouse’s account
The government has issued a bonus for those with spouses in the low-income bracket.
If your spouse is a low-income earner, you can make a super contribution of up to $3,000 into their account – which will give you a $540 (maximum) tax offset in your return.
To qualify, your spouse must:
- Have a total super balance under the general transfer balance cap ($1.9 million)
- Earn less than $40,000 in annual income (assessable income plus reportable fringe benefits plus reportable employer super contributions)
- Have not exceeded their non-concessional cap
- Be under 75 years
4. Apply for government help
Here’s a key tip for low-income earners.
If you earn less than $43,445 this financial year – but make a $1,000 after-tax contribution to your super fund – you might be eligible for a government contribution of up to $500.
This applies to you if you earn at least 10% of your income from employment or carrying on a business. You may also receive a partial contribution if you earn between $43,445 and $58,445.
5. Withdraw your minimum pension
Do you have a self-managed super fund that pays you a pension? If so, make sure you withdraw the minimum amount before 30 June 2024.
Remember: The drawdown rates are no longer halved. So plan ahead!
6. Check which tax bracket you belong to
Pay particular attention to the new tax brackets in the 2025 financial year and beyond
| 2023/2024 | 2024/2025 and onwards | ||
| Income Bracket ($) | Tax Rate (%) | Income Bracket ($) | Tax Rate (%) |
| 0 – 18,200 | Tax-free | 0 – 18,200 | Tax-free |
| 18,201 – 45,000 | 19 | 18,201 – 45,000 | 16 |
| 45,001 – 120,000 | 32.5 | 45,001 – 135,000 | 30 |
| 120,001 – 180,000 | 37 | 135,001 – 190,000 | 37 |
| 180,001 and over | 45 | 190,001 and over | 45 |
7. Double-check employee super payments
If you’re a business owner, check that your employees’ super payments are correct. As of July 2024, the Superannuation Guarantee Contributions (SGC) will increase from 11% to 11.5%.
This change may increase costs for business owners, so review your employee contracts.
8. Apply for an asset write-off
Small businesses are doing it tough. Thankfully, the government is providing an incentive to help them.
Pending the bill before parliament, eligible small businesses can now access an instant asset write-off threshold of $20,000. This is if the business:
- Carries on a business under general principles for the 2024 income year
- Achieves a combined annual turnover of less than $10 million
- Chooses to apply simplified depreciated rules for the 2024 year
- Purchases an asset that costs less than $20,000
- Installs or uses the asset between 1 July 2023 and 30 June 2024
9. Take advantage of the small business energy incentive
A 20% bonus deduction will be available for eligible business spending that supports electrification or more energy-efficient use, incurred from 1 July 2023 to 30 June 2024.
The incentive applies to eligible business expenditures on the cost of assets or improvements of up to $100,000. The maximum bonus deduction is $20,000. It is only accessible for businesses with an aggregated annual turnover of less than $50 million.
Want help to get the most from your tax return? Get in touch today!
Disclaimer: This article is for guidance only. Professional advice should be obtained before acting on any information within. Neither the publisher nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this article. Our liability is limited by a scheme approved under professional standards legislation.