The idea of doing your taxes can be overwhelming and often leads to overpaying your hard-earned money. Employees, freelancers, sole traders, and small business owners can reduce their tax liability and save more through smart and legal methods. Many Aussies claimed $2,739 of work-related expenses in the 2022-2023 financial year.
At Aupod, our registered tax agents help individuals and businesses navigate the tax system with confidence. Here’s your go-to guide on the easiest ways to pay less tax this financial year.
1. Keep Accurate Tax Records All Year Round
One thing that saves you from paying extra is having a good record at tax time. Save every receipt, invoice, logbook and statement related to income or deduction. ATO requires evidence for most claims, and a well-organised folder of documents (digital or physical) saves time and increases the accuracy of the return
The best technique is to set aside 5–10 minutes weekly to photograph receipts, update logs, and file statements. It pays off at EOFY.
2. Claim All Work-Related Deductions
What many people don’t know working-from-home can save you tax in Australia. This includes home office expenses, tools, uniforms, self-education, travel, and even a portion of your phone or internet if used for work. If an item is used both personally and for work, you can still claim the work-related portion.
The best way to know if you are eligible for a claim is to seek professional help from an eligible Aupod tax specialist.
3. Make Tax-Deductible Charitable Donations
Donating to a good cause is not only giving back to society but also comes with a tax perk. Charities over $2 made to registered charities (Deductible Gift Recipients) can be claimed on your tax return.
Just make sure you keep the receipts. Donations reduce your taxable income, not your tax refund directly, but every dollar counts.
4. Use a Registered Tax Agent
Expert help can lead to higher refunds and fewer mistakes. Over 70% of Australians use a registered tax agent to lodge their returns. Tax Practitioners Board-certified agents stay up to date with ATO changes and know where to look for deductions and offsets you might miss.
The best way to visit a platform like Aupod, where return is reviewed twice with the hybrid support and filed with precision, all at affordable rates and no hidden charges.
5. Know When to Time Your Expenses
Strategic timing makes a real difference.
Planning a big deductible purchase is important because the financial year you buy it in affects your tax savings. If you expect a higher income this year, bring forward your deductions before 30 June to potentially lower your taxable income and reduce your tax rate.
Business owners and sole traders should consider deferring income or accelerating expenses to manage cash flow and tax impact.
6. Avoid the Medicare Levy Surcharge
A basic private health policy could save you more than you spend. If you don’t have private hospital cover, the ATO charges an additional 1% to 1.5% surcharge on your income if you earn over;
- $101,000 (single)
- $202,000 (family) and
Often, a private plan costs less than the surcharge itself. Evaluate your options carefully and know that private cover might also benefit you with faster treatment access.
7. Invest Smartly for Long-Term Return
Investment strategies can reduce tax, but only when done wisely. Before jumping into shares, property, or managed funds, speak with a licensed financial adviser.
Some investments offer tax offsets or deductions, but poor investment choices can cause long-term losses that outweigh short-term tax gains. Also, watch out for ‘wash sales’, the ATO is cracking down on selling assets at a loss just to offset gains.
8. Reduce Mortgage Interest Over Taxable Savings
If you’re taxed on your savings, use that money to pay off your mortgage instead. Interest earned from savings is taxable, but mortgage repayments are not. Redirecting spare cash towards your home loan can lower interest costs and reduce tax exposure at the same time. You can also use an offset account to maintain liquidity.
9. Split Finances with Your Partner Strategically
Income splitting between partners can reduce total tax paid. For couples, consider who holds investments or savings. Allocating interest-earning accounts or assets to the lower-income earner may result in lower overall tax liability. A registered agent can help structure this effectively, within ATO rules.
10. Manage Capital Gains with Timing
On selling an asset like shares, crypto, or rental property, you may be eligible for a 50% Capital Gains Tax (CGT) discount if you’ve held the asset for over 12 months. If your income varies year to year, try to sell in a year when your income is lower; this reduces the CGT impact.
ATO is watching: Declare all gains, especially from crypto, property, or investment apps.
Bonus Tip: Use Smart Tools to Find Deductions
At Aupod, we use digital deduction checklists and real-time claim tracking.
Our online tax service ensures nothing slips through the cracks. From occupation-specific deductions to overlooked offsets, our system flags what you may be missing and helps you claim it confidently.
Final Words!
Paying less tax in Australia simply means understanding the ATO rules, planning, and understanding the guidelines. Professional guidance from tax agents and accountants can help you pay less tax and increase your return.
Let Aupod take care of the hard part.
- Registered tax agents
- Online tax return lodgement
- Personal and business tax support
- No hidden fees. Transparent pricing.
- Year-round advice
Start your tax return today at Aupod.ai
Or speak to our team for a quick tax refund check.
