Tax Time 101

Relax! It’s not the end of the world, just the end of the financial year. To maximise your return and minimise the heartburn — it doesn’t have to be stressful! — we break things down in this beginners’ guide to tax time.

• Don’t wait around until the last minute to get organised – start right now... well, at least after you’ve  read this article.
• Maintain detailed records so you can claim every expense you’re entitled to, big or small.
• Time is money, so have all the necessary information — like your group certificate, bank statements, receipts and log books — readily available. That’s especially important if you’re lodging your tax return through an accountant, so your visits are time- and cost-effective.
• Keep all relevant receipts, even the ones you’re not sure about.
• Pay off debts as soon as possible - you’re saving yourself from forking out extra interest and tax in the long run.
• Make a voluntary after-tax contribution to your superannuation and you may be eligible to receive a government co-contribution, especially if you’re a low-income earner.
• Pay any expenses that’ll attract a tax deduction before June 30. These include, for example, income protection premiums, subscriptions and any other work-related costs.
• Find out whether there are additional expenses you can claim for your specific occupation and industry, like car maintenance, stationery, self-education, donations and travel expenses.
• If you own an investment property, declare borrowing costs, body corporate fees, maintenance and repairs.
• Go to the Australian Taxation Office website (www.ato.gov.au) for handy information on what you can and cannot claim as a tax deduction.
• It’s accountants’ busiest time of the year, so don’t wait until the eleventh hour to make an appointment; book a few weeks (even months) in advance. Tax agents’ fees are deductible, as are related expenses — like travel to and from their office — so claim all costs associated with doing your tax.
• Don’t throw this stuff out after you’ve lodged your return, either. Keep it for five years in case you’re ever audited.

So, if we’re to sum up tax time in a neat little list for the average Aussie taxpayer, it’d go something like this:

• Don’t procrastinate!
• Keep records.
• Have info at the ready.
• Keep all receipts.
• Pay off debt ASAP.
• Make a contribution to your super.
• Pay tax-deductible costs before June 30.
• Declare job-specific expenses.
• Make rental properties count.
• Trust the experts.
• Make appointments in advance.
• Claim tax agents’ fees.
• Be a hoarder!

Merry EOFY! Moneysoft wishes you many happy (tax) returns! 

Posted 11 years ago 2 Minute(s) to read