10 ways to stretch your budget further

1 Special super benefits

If you have lost your job, you might be eligible for the low income super tax offset (LISTO). This is a government super payment of up to $500 a year to offset tax on concessional contributions and help low income earners save for retirement. People earning less than $37,000 a year will receive the payment automatically when they lodge their tax return, providing the super fund has the member’s tax file number.

Low to middle income earners could also be eligible for an extra $500 from the government via the super co-contribution, providing they make an after-tax contribution and meet other criteria.

2 Travel by the logbook

Claiming expenses with a logbook for work-related car travel is a big tax deduction for many employees, yet many fail to maximise it, says Adrian Raftery, principal of Mr Taxman.

If you use your car for work-related purposes, the logbook method is best, but again this is something that you can’t leave until June 30 – it takes 12 weeks of diligence in keeping accurate records.

“I know from personal experience that logbooks are annoying creatures to complete, but it’s just a minute in the morning, a minute in the evening, maybe 120 minutes over the year, for potentially an extra $5000 in tax savings,” says Raftery.

“It’s important to keep your receipts for all costs associated with the running of your car (such as petrol, insurance, registration, servicing and lease payments), not just for the logbook period. If you change your job role, get a new car or your last logbook is more than five years old, then you need to start a new one.”

3 Get a smart accountant

Just as most people can change a tyre, most of us can do our own tax, but it usually pays to get an expert to look at it. The last thing you need is a query from the tax office because you claimed too much. A registered tax agent knows where the boundaries are in terms of what you can and, more importantly, can’t claim. You can generally delay the lodgement of your return until May, rather than October, and the accountant’s fee is deductible.

4 Ask and you will receive

There have been recent reports of homeowners reducing their mortgage interest rate from more than 4% to just over 2% – simply by asking their lender

for a better deal. Of course, having higher equity in the property helps. Many people have reduced utility bills (electricity and gas), subscription services (such as Foxtel) and insurance premiums the same way.

5 Cut your medical bills

For those with private health insurance, have you claimed all the medical bills you are entitled to? Does your health fund cover massages, gym memberships and equipment? Check to see exactly what it covers and then claim anything you may be entitled to (hopefully you have kept receipts).

In addition, if you need to see a doctor or get regular medical tests, the Medicare safety net can help to lower your out-of-pocket costs. If you have spent more than a certain amount in a calendar year you may be eligible for a higher refund. If you are part of a family or couple your costs can be combined by registering as a family (servicesaustralia.gov.au and search for Medicare safety nets).

6 Cull all the subscriptions

Kate McCallum, a financial adviser at Multiforte Financial Services, says stopping “lazy spending” can save you money. “My husband and I both had Spotify accounts until our son pointed out we could get a family account,” she says.

Check your family’s spending on other subscription services. Do you have a range of streaming services that can be streamlined? For example, do you need Netflix and Stan concurrently or can you stop and start them to meet your viewing requirements?

Financial adviser Anne Graham says she has a new client who spent $150 a month on Foxtel and $17 on Netflix. You’ve got to ask – is that conscious spending? It can pay to review other regular commitments too. Graham has saved a couple of thousand dollars this year by changing health and home and contents insurance. She says it was easy. “Everyone gets busy, but if you think of it as an hour or two to manage spending it’s worth your time as you only have to do it once or twice a year.”

While you’re at it, tidy up your personal admin. Check what your utilities, banks, credit card providers and phone companies offer customers and make the most of any discounts on books, movies, magazines and exercise gear, for example.

7 Join the club

Depending on where you live you may be able to join a tool-sharing community. People can register their equipment and others can borrow what they need without having to shell out possibly hundreds of dollars. While this will not generate cash, it will save you money.

You may have other options for making extra cash. For example, do you have a car spot you are no longer using?

Maybe you sold your car or are no longer attending the office where you had an allocated spot. Can you rent it or sub-lease it? Or can you cancel it and get a refund?

8 Share portfolio bonus

BT’s Bryan Ashenden says investors who have a substantial share portfolio (where dividends from shares were $4000 or more in the previous year, and they have had to pay $1000 or more in tax after any PAYG) may have been paying quarterly instalments and may find they’ve paid more than necessary if some of these shares didn’t pay dividends this year, or paid lower dividends. “Again this may give you a tax refund this year if you have been paying quarterly instalments along the way,” he says.

9 Once-in-a-lifetime benefits

During the pandemic there are a number of avenues you can explore to bring in extra money.

“There are a few Covid-19 specific ways of saving money,” says Bryan Ashenden, head of financial literacy at BT Financial Group. “Did you access super early because you could but now realise you didn’t need it all? If you have a bit extra you may like to recontribute it with a tax deduction (should you need one for the new financial year). If you don’t get a tax benefit now, you will in the years to come with the preferential tax that super offers.

“If you’ve been working from home for a few months, like many of us, the very least you now have is the 80¢ per hour work-from-home tax allowance that the ATO has set up this year. This is a deduction you normally wouldn’t be able to claim, so whether it reduces your tax to give you a refund or to lower your tax owing, it’s more money for you.”

10 Develop your skills

If you find yourself with time on your hands, it’s a good opportunity to think about your passions and skills and put them to good use.

Advertise locally. You can join Airtasker, where you can bid for jobs that suit your skills. Alternatively, download the free neighbourhood hub app Nextdoor. It’s a great place to sell your homemade wares (sew a few masks and let people know they’re for sale), cut flowers, excess herbs, lemons or tomatoes. It’s also a great avenue to let your neighbours know you’re happy to take in their ironing, mow their lawn, do a few hours babysitting, tend their gardens or take their dog for a walk for a fee ... or for free.

These ideas are all about bringing in extra cash but you can also use this as an opportunity to offer your services for free when you can and help people in your local community. Who knows? You never know where being altruistic will lead – but wherever it does, you can feel good knowing you’ve done good!