Tax time is upon us again. To help our members navigate this process smoothly, we have put together some tips to consider.
Keep Accurate Records
Getting into a habit of keeping detailed records of your income and expenses throughout the year can make completing your tax return a quicker and less stressful process, as well as help you claim all the deductions you are entitled to. This includes retaining all receipts and statements related to your income and deductions. The Australian Taxation Office (ATO) even has an app to help you do this1.
Understand Your Deductions
Deductions reduce your taxable income. Deductions can include work-related expenses such as uniforms, tools and travel, as well as charitable donations and medical expenses. It's essential to keep receipts and documentation for all your deductions.
Working from home
The process for claiming working from home expenses has changed slightly, with the removal of the shortcut method. You may be eligible to claim working from home expenses if you:
- Are working from home to fulfil your
work duties (not just small tasks like
checking emails). - Have additional expenses because you
are working from home (e.g. electricity
or internet data). - Keep records that show the above.
There is now a revised fixed cost method and an actual cost method to calculate your work from home expenses2. More information about expenses and deductions can be found at https://www.ato.gov.au/.
Speak to an accountant
If you have a complex tax situation or are unsure about how to complete your tax return, seeking professional advice from a registered tax agent is a
good idea. A tax agent can ensure you are claiming all the deductions you are entitled to.
Lodge Your Return On Time
Lodge your return on time to avoid penalties and interest charges. If you need more time, you may be able to apply for an extension, but this must be done before the deadline.
This blog post is for general information purposes only and is not intended as financial or professional advice. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product or other professional advice. You should seek your own independent financial, legal and taxation advice before making any decision about any action in relation to the material in this article.
1 https://www.ato.gov.au/general/online-services/ato-app/
2 https://www.ato.gov.au/individuals/income-deductions-offsets-and-records/deductions-you-can-claim/working-from-home-expenses/.
