Things aren’t easy right now for investors, or anybody for that matter.
But there are some things you can do.
First up is a PAYG Withholding Variation where you pay less tax during the year – more about that below.
Another thing is to make sure you’re getting as much depreciation as possible and making sure that all your other property-related deductions are accounted for in your tax return.
A PAYG Withholding Variation sounds more complicated than it is. Essentially it means you can apply to pay less tax during the year if you can predict with some confidence what your tax return might be at the end of the year.
Let’s say, based on previous years, you think you might be in line for a tax refund of $10,000 at the end of the current financial year. Instead of waiting until July 2024 to claim that, you can seek to pay less tax during the year.
It’s not a difficult thing to do and many investors take advantage of it. You can even apply online.
You will of course chat to your accountant about this before you do anything and ideally make a conservative estimate of your projected tax refund.
Another thing you can do is make sure you are getting as much depreciation as possible.
Depreciation is called a ‘non cash deduction’. Unlike other tax deductions where you pay money out and then try to claw some back, depreciation is just sitting there waiting for you to pick it up.
Depreciation is an important deduction to have in the mix when you are estimating a future tax deduction. Even if you think your property does not qualify, it’s worth an enquiry.
You might be surprised. Have a look at our estimate tables for depreciation on older properties.
Getting ready to see your accountant?
Make sure you check out our list of property related expenses so you can have everything ready for your appointment.
