Smart Tax Strategies to Reduce Tax Bills for Individuals and Businesses

Tue, 25 Mar 2025

Taxes are unavoidable! But does that mean you will pay extra? Obviously not, right? Unfortunately, many people do because they don’t know how to take advantage of smart, simple, and legal tax-saving strategies.

The system of tax is filled with deductions, credits, and loopholes designed to keep more of your money in your pocket with lower tax bills. However, if you are not aware of these, you end up giving away extra cash. Strategically implementing these smart moves can help you reduce taxes.

It does not matter if you are an individual filing taxes or a business owner trying to save some bucks on your tax bill. This blog covers a simple guide to walk you through the smart, effective tax-saving strategies in Perth.

Don’t let another tax season drain your wallet. Learn how to pay less and save more—legally!

How to Save on Taxes in Simple Steps For Individuals?

Tax season does not have to be stressful! If you are well known for smart strategies and well prepared for that, your tax bill is going to be low.

1. Claim Every Deduction You Can

You can lower your tax bill just by claiming certain expenses. The tax bill can be lowered just by claiming certain expenses. Many Australians miss out on this because they are not aware of this. Do not forget to claim deductions such as:

Work-related Expenses - Expenses directly related to your job, such as uniforms, equipment or tools, or courses for your professional growth, can be claimed for deduction.
Donations - Donations made to registered charitable organisations can be claimed for deduction. However, there are certain rules to claim this deduction; for example, you cannot claim a deduction when you receive something in return.

2. Superannuation Contribution Can Help You Save

Superannuation is indeed a saving for retirement, but it is also a tax-saving tool. It is about your future plus the current savings you can:

Salary Sacrificing - Salary sacrificing into your super means taking some of your pre-tax into your super fund instead of your bank account. This helps you save tax because super contributions are taxed at 15%, which is lower than the regular income tax rate. It is a smart way to save.
Government Co-contributions - If you earn under a set amount and add after-tax money to your super, the government might give you extra money. This is a great way to grow your super savings.

3. Smart Investment Tax Strategies

Investing can be a smart tax-saving strategy when done right.

Negative Gearing - If your property expenses are higher than the rent you earn, you can use the loss to reduce tax on other income. This helps you to lower your tax bill overall.
Capital Gains Tax (CGT) Discount - You may get a 50% tax discount when selling if you own a property or shares over a year. This helps you pay less taxes on your profits.

4. Keep Good Records & Stay Compliant

Missing paperwork could mean losing tax deductions! Stay on top of your finances with these simple steps:

Track All Expenses - Keep track of your spending by saving receipts and invoices. This helps you see what you spend and makes it easy to claim deductions on your tax return.
Stay Compliant - If checked, good records help you follow tax laws and prove your claims. This keeps you safe from mistakes and makes tax filing easier.

How To Reduce Business Taxes and Keep More Profit?

Running a business is exciting and adventurous! But taxes, not so much? With smart planning and strategies, you can lower your tax bill legally and keep more profit in your business. Here is how to business tax savings:

1. Choose the Right Business Structure

Do you know that changing your business structure could impact your taxes hugely? Choosing the wrong structure could mean more than necessary:

Sole Trader - Simple setup but may result in higher tax rates as an individual.
Company - Offer a complete company tax rate of 30%, but small businesses with a turnover of less than $50 million may qualify for a lower tax rate of 25%.
Trust - Allows income distribution among beneficiaries, potentially lowering overall tax liability.

2. Maximise Business Deductions

Why pay tax on money you don’t have to? Do you know every dollar you claim as a deduction is one less dollar taxed?

Operating Cost - Expenses like office rent, equipment, marketing, and more are operating expenses. Claiming these businesses can lead to lower tax rates.
Instant Asset Write-off - Eligible businesses can immediately write off the cost of assets less than the threshold. Buy new equipment and claim the cost upfront.

3. Manage the GST & BAS in the Smart Way

Mismanaging Goods & Service Tax (GST) and Business Activity Statement (BAS), losing money or paying unnecessary penalties.

Claim GST Credits - Reduce what you owe by claiming GST on Purchases. Offset GST collected by claiming credits for GST paid.
Timely Lodgement - Submit BAS on time to avoid and maintain compliance.

4. Leverage Government Incentives

Did you know that the government offers tax breaks? Access the advantage of government programs designed to support businesses.

Small Business Concessions - Check with the eligibility if you may qualify for lower tax rates.
R&D Tax Incentive - Businesses can claim tax offsets for eligible research and development activities.

Stop Wasting Money on These Tax Mistakes

Mismanaging tax can lead to huge problems, from unexpected bills to ATO audits. Here is what to do:

Over Claiming Deductions

Claiming too many deductions can trigger ATO audits. Make sure what you are claiming is legitimate and backed by records.

Claim-only deductions are directly related to your income earned. For example, work-related travel or uniforms.?
Keep all receipts and detailed records for all your claims, as the ATO requires evidence for deductions.

Not Planning Tax Payments

A large tax bill can mess up your cash flow. Proper tax planning in Perth helps you manage payments smoothly.

Set aside a particular amount of money regularly. Don’t be caught off guard.
Keep your money tax money safe by using a separate account.

Poor Bookkeeping

Messy records = missed deductions and tax stress. Good bookkeeping means accurate tax returns.

For better record-keeping and reporting, accounting software that tracks income and expenses can be used efficiently.
Store receipts digitally to avoid losing them. The ATO provides resources to help small businesses with record-keeping.

Keep More, Pay Less with WMK Accounting

Tax rules can be confusing, but saving money doesn’t have to be. WMK Accounting makes sure you only pay what is necessary, not a dollar more. From claiming deductions and salary sacrificing into super to structuring your business tax efficiently, we will help you make smarter tax decisions.

With WMK Accounting, you don’t have to guess. Our team of experts helps you reduce tax stress, maximise savings, and stay ATO-compliant. Let’s create a strategy that works for you, contact WMK Accounting today and start saving!