Tax time!
It’s the time of year again where I, like many others, tally up all my receipts and expenses and hope to get a bit of cash back after doing my tax return.
With the rules on what you can claim for and how much you can claim changing all the time. And the topic of tax can get very confusing. And it’s even worse if you’re transitioning from employment to being self-employed, semi-retired or retired.
This year the Australian Taxation Office (ATO) will be paying particular attention to record keeping, work-related expenses, rental property claims, and capital gains. So be organised to help prevent errors. The online lodging process is quite straight forward but you want to avoid making any errors when filling in your return.
Here are a few tips and resources that can help make the process easier.
Before lodging
If you’re an Australian resident who earns more than the tax-free threshold of $18,200 within the financial year, will need to lodge a tax return. However if you’re not sure, there’s a tool you can access through the ATO (Australian Tax Office) on your myGov account that will let you know.
To lodge your return, you need your tax file number (TFN), bank account details, your income statement or payment summaries for amounts earned and any government payments received.
You also need details of any private health insurance, investments, contributions or withdrawals from your superannuation. And you need to keep records and receipts for any claimable expenses. These include donations, self-education and work-related expenses such as travel, laundry or equipment.
Using the ATO app, you can scan in your receipts and easily keep track of your deductions.
Lodging your tax return
You can lodge your own return by October 31 either online using myTax or by posting paper forms. Or you can also have a tax agent lodge the return for you.
When I was an employee and my tax was basic I was confident doing it myself.
Now I’m self employed things are a bit more complicated, so I prefer to pay a trained professional to do it for me.
You can claim the tax agent’s fee in next year’s return.
Afterwards
You can view the status of your tax return in myGov, but generally returns lodged online take around two weeks for processing.
If you’re lucky enough to receive money back, it will be deposited directly into your nominated bank account.
If you end up with a tax debt, the due date for payment is November 21.
To arrange a payment plan, call the ATO on 13 28 65 to make enquiries before November 21 to avoid paying interest.
MsMoneysaver’s tips are prepared in good faith. that’s life! cannot assure readers that they will be effective in all cases and is not responsible for any loss or damage resulting from following them.
