How I Get $13k Tax Return for 23/24 FY
Ever wondered how some people manage to get huge tax returns? I'm about to share how I transformed my financial strategy and ended up with an almost $13,000 tax return, all while increasing my income. Sounds too good to be true? Let me break it down for you.
The Secret Sauce: Smart Debt and Superannuation Strategies
Debt Recycling: I converted $400,000 of my home loan into an investment loan. At 6% interest, this created a $21,000 tax deduction. How? The interest on loans used for investments is tax-deductible.
Superannuation Contributions: I maxed out my concessional contributions cap and used catch-up contributions. This allowed me to claim a $30,700 deduction. Remember, super contributions can significantly reduce your taxable income.
Additional Deductions, Losses & Discounts I claimed:
50% CGT Discount for assets held more than 12 months - $16,000
Carried forward losses from previous years - $9,000
WFH & other work-related expenses - $1800
Income protection insurance - $1500
Investment-related books - $100
Cost of managing tax affairs (tax accountant) - $890
Franking tax credits from share investments - $1900
The result? Despite earning an extra $45,000 on top of my salary from dividends and selling shares last financial year, I didn't need to pay additional taxes for them. My deductions offset the extra income, resulting in a substantial tax return. The simplified calculations are shown below:
Key Takeaways:
Understanding tax deductions is just the start. Implementing a comprehensive strategy is where the magic happens.
Seemingly counterintuitive moves, like taking an investment debt or contributing more to super, can lead to significant tax benefits.
Professional advice from a tax accountant and financial advisor can be invaluable in crafting a personalised strategy.
Remember, everyone's financial situation is unique. What worked for me might not be the best approach for you. However, this glimpse into my tax strategy shows that with careful planning and expert advice, you can potentially transform your financial outlook.
Let’s Build Wealth Together 💡
📩 Hit reply or leave a comment! I’d love for this space to be a two-way conversation. Have money questions or topic requests? Let me know!
🔗 Find me on Instagram. Let’s connect and talk money in a way that actually makes sense.
📣 Sharing is caring. If you know someone who would benefit from this, please send them my way. I’d love to help more people take control of their finances.
With love,
Find me on Instagram.