Tax planning is a task required from all kinds of people who earn money through employment or putting up their own businesses. This task may be completed on their own or with the help of a professional accountant depending on the preference of the tax payer. Those who are very busy with their jobs and those who can afford accounting fees opt to have a professional all the procedures involved in this task accomplished on their behalf.

A big percentage of tax payers belong to the working class. They may not know about it but employees can actually do something to have lower dues to pay the government and this is regardless of the nature of their jobs. This can be achieved through, of course, effective tax planning. They should begin by having updated records. These records must include all receipts of expenses and other sources of incomes. Some do not disclose all their sources of income in their aim to have lower taxes to pay. This may be done but this can be very risky especially when the government recognizes other assets under your name before you even declare them.

Investment properties needing repairs comprise another group of legitimate deductibles. If you have these, schedule your repairs before the deadline for the current financial year. This will enable you to gather receipts of expenses for corresponding deductions. As expenses are advanced, income can also be delayed especially when the deadline is rather near. Giving to the needy and the poor also comes with a reward in the form of decreased deductions. Take note though that there must be a receipt of the total donations given to your selected charitable institutions even though you opt to file taxes online.

Another percentage of the tax payers belong to the business group. These people can have expenses different from those encountered by employees. One of their expenses is the superannuation guarantee payment for their staff. These fees may be covered in advance in line with the goal to lower taxes. Identification of business type is also helpful in legally reducing the dues every business owner has to shoulder. Generally, an entrepreneur can operate as a sole trader, in partnership  in a trust or company. Knowledge of the appropriate business structure gives you knowledge of the other exemptions you can have. If you have business assets amounting to something lower than the amount set by the government, you can write them off immediately. However, it is wise to check on this matter with the help of your accountant.

Other legal deductions which can be included in tax planning are contributions to health insurances and retirement plans. These are particularly true  for those with as self-employed declaration. Anyone can start on these items while they are young. This way, you can prepare for your future early and save from your taxes meaningfully. Some employed people who are close to retirement age. You can look into several small business capital gains tax concessions provided by the government.