With end of financial year almost upon us, Chartered Accountants Australia and New Zealand has released a list of tips and tricks for taxpayers to maximise their position this financial year.
CA ANZ senior tax advocate Susan Franks said taxpayers should be aware of the below:
- Keep a record of all your purchases.
Keeping your records from the start will ensure you don’t end up paying more tax than you need to, as you’re able to verify and therefore claim legitimate deductions.
- Look into making extra contributions to your superannuation.
Changes have been made that allow you to make extra contributions, so it is important to know if you qualify and action the appropriate transfers before the business week is out.
- Report all sources of income.
Amounts received from second jobs, for renting out a room or a house on Airbnb or providing a service in Airtasker or selling trading stock on eBay will generally be considered as taxable income. The ATO receives information about these payments, and taxpayers will be caught out if they don’t appropriately declare.
- Consider being charitable.
Not only is giving to a charity that is a deductible gift recipient worthwhile for social causes, contributions over $2 are also tax deductible.
- Know what you can legitimately claim as an expense.
An expense may be your vehicle, clothing or computer that has helped you earn income during the year; however, it’s important that the way the expense is used for personal and work purposes is appropriately apportioned.
- Your employer may be using Single Touch Payroll.
Many Australian employers are switching to Single Touch Payroll functions, which report PAYG and super data to the ATO. Find out what Single Touch Payroll means for you as an employee, and if it’s ideal for you to lodge early.
“Tax time can send many of us into a panicked frenzy as we race to find receipts and look up what we can claim, in order to submit our return on time,” said Ms Franks.
“But if you do a little preparation and are aware of the rules that might impact upon you, tax time can be a relatively painless experience, and you may be pleasantly surprised with your tax refund,” said Ms Franks.
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