Don't Be Fooled Into Spending Around Tax Time

Disclaimer: I am not a financial advisor, nor an expert, and none of this constitutes as being financial advice whatsoever.

You see the ads from businesses like Office Works telling you to hurry up before the end of financial year EOFY, tonnes of companies trying to make their profits for the year capitalise on tax time.

One such tactic I know Office Works, in particular, are guilty of is telling you to spend before EOFY and then claiming it on your tax return. Well, here is the thing they don't tell you: on average, you'll go get back a third of what you spend.

So if you go spending up like your pockets are swollen thinking you are going to be getting that money back, you're not. I mean a third is better than nothing, but it's not a large amount you're getting back.

Then you have the generally unspoken rule of depreciation. Which means if you purchase something you need for your business such as a laptop, you can't instantly claim. This means if you buy a laptop near EOFY that you'll be using to make money, you can't claim it because it's a depreciating asset that declines in value over time.

Understandably, when it comes to tax-related matters they're complicated and confusing to understand (which is why we usually pay an expert to handle it for us). Companies advertising for you to spend up big during tax time capitalise on the fact they know most people don't know about things like depreciation or how much you get back when you claim.

Be smart, don't spend beyond your means and invest your extra money into Steem not material items you don't need thinking you'll get the money back when you file your tax return.

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