It’s tax time! Maximise your return.

Maximising your return doesn’t have to be stressful! — we break things down in this simple guide to getting the most out of tax time.

• Don’t wait around until the last minute to get organised – start right now... well, at least once you’ve read through this article.

• Try to detail everything so you have every chance of claiming expenses that 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 will 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 (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 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!

Remember, Moneysoft can help you at tax time. You can assign transactions to 'Tax' when you are categorising, so that when it comes to doing your tax you are easily able to identify what is tax related and what isn’t. Disclaimer: The content within is general or publicly available information only. Speak with your accountant or financial adviser for advice on your specific circumstances or visit www.ato.gov.au

Posted 10 years ago 2 Minute(s) to read