Ten Ways to Minimise Your Tax while Keeping the Tax Office Happy
In This Chapter
Taking advantage of the tax system
Claiming tax deductions
Making full use of superannuation
I n a federal government inquiry into the media in 1991, Kerry Packer, who was at that time the richest man in Australia, made the following attention-grabbing statement: ‘If anyone in this country doesn’t minimise their tax, they want their head read’ (enough said!). To help you avoid getting your head read, in this chapter I discuss ten ways to minimise your tax bill while keeping the Tax Office happy.
Keep Good Records
Keeping proper records is the first step to minimising your tax bill. Set up a good record-keeping system to keep track of all your assets, income and expenses. If the Tax Office audits your tax return, the onus of proof that your tax affairs are in order rests with you (refer to Chapter 4). Ordinarily, you need to keep your records for five years. A tax agent can help you set up a good system to meet your statutory obligations. The key records you need to keep include