We often are asked - how do I get a bigger refund?
The answer is simple - spend more money. But, spending money just to get a refund doesn’t work, you need to spend your money for a higher purpose than that, as the maths just doesn’t stack up.
If you are on the 32.5% tax bracket (that is you earn between $45,000 and $120,000) then for every dollar you spend on a tax deduction you get a refund back of $0.32.
So if you spend $150 on work boots, you receive a refund of $48.75, meaning that overall your boots cost a hundred bucks...and it’s not a cash back system, you have to wait for your money!
We absolutely want you to claim everything you can, it now comes to “what do I have to spend in order to get the best benefit”. You won’t buy a pair of boots every month because you don’t need them - they still cost $102 after the tax refund is received (later - when you lodge your tax return).
We would rather you keep the $150 than waste $100 on a new pair of boots.
If you still need to get your tax return prepared, click here: https://www.northwestaccountancy.com.au/tax