Tax advice aimed specifically for women is few and far between although quite obviously many of us have experienced years of low or no income due to caring for our children or equally caring for our parents or siblings. So on International Women’s Day here are some tax tips every woman should know!

 

  1.  Save for your retirement!  Your super contributions are pre-taxes which means they are deducted before income tax is calculated.  What better way of lowering your taxable income than by investing in your future?  Increasing your contributions could allow you to qualify for a lower tax bracket.
  2. Claim the benefits you deserve. Family Tax Benefits are tax credits which can be paid fortnightly or as a lump sum at the end of the year. Family Tax Benefit Part A is paid per child and the amount paid is based on the family’s circumstances. Family Tax Benefit Part B is paid per-family and gives extra help to single parents and some coupled families with one main income.
  3. Many entrepreneurial women work from home, this keeps overheads low and has tax advantages.  Electricity, rent or mortgage, internet and phone can all be claimed as deductible expenses to lower your taxable income. Speak to our team to find out more!
  4. Side Hustles were the big thing pre-covid and as the world springs back to life so does the side hustle; airbnb, uber, ironing, airtasker, cleaning.  Although a second income can be very handy you need to think about the tax implications which could take you into a higher tax threshold.
  5. Withdrawing your super at 60.  When you meet the condition of release of your super fund you can decide whether to receive your super as an income stream, or a lump sum.  The pros of a lump sum is obvious, you get to decided what to do with the money, pay off your mortgage, buy a new car, you could also create a new income stream by investing in property.  However with an income stream your super creates the flexibility of choosing how much you receive each year which could top up your income.  Either way you need to return to step 1 and save for your retirement; in 2019 nearly 36% of women at retirement age were relying on their partner to support their living expenses compared to 7% of men. Retired women drawing a private super was only 26% compared to 59% of men. Come on Women lets bridge that gap and claim our Super Independence!