So… it is THAT time of the year again. If you have earned income, received benefits or generated any kind of money that has been taxed, it is likely that you will need to lodge a tax return. Here are our 5 top tips to tackle EOFY and face the new one like a winner!
#1 Keep calm!
EOFY is here but that is no reason to panic. You actually have until the 31st of October to lodge the return! If you are using a registered tax agent, they will be able to lodge your return even later than that, as long as you make sure to contact the agent before the October due date.
#2 Go online
Doing taxes is my favourite pastime. Said no one ever. And yet it needs to get done. Consider taking the process online!
MyTax system allows you to file your return on any smart device with internet connection, 24/7. It prefills information provided to ATO by your employer, banks and government agencies. You will also be able to upload your own data directly from myDeductions. Features such as built-in checks and integrated calculators help to avoid mistakes and speed up the work. myTax can be accessed via my.gov.au.
#3 Get your deductions right
When completing your tax return, make sure you know which expenses you are entitled to deduct. Often these would be costs related to earning your income, but not all work associated expenses are deductible. The listing at ato.gov.au/occupations helps you figure out what you can and cannot claim.
If you have taken out a home loan to invest in real estate, that could be another significant source for tax deductions for you, as long as the property has been rented out or available for rent for the period over which you are making deductions. Even residential homes with some part of the house used for business, such as for rent or used as an office, can be subject to deductions. Whether you are an owner-occupier or an investor, it is your responsibility to keep records such as receipts and proofs of purchase to substantiate your tax claims.
#4 Stay ahead of the game!
If EOFY tends to sneak up on you, learn from this experience and get on top of your finances now! Having a solid action plan can take away a lot of unnecessary stress. So double-check that you know your obligations and due dates, and then set up calendar alerts for the next round! If receipt management isn’t your forte, try myDeductions app to store all your deduction records safe and sound in one place.
#5 Do you have a budget?
Start the new financial year on the right foot and put together a budget. We believe it is critical to successful financial management in households and businesses alike. So take the time to review your financial statements from the past financial year and put together a budget for the next 12 months. Consider forecasting your expenditure for at least 12 weeks in advance to avoid cash-flow issues.
Shhhhh….. secret tip only for you!
Our secret weapon is to treat ourselves with something we love after finalising the return. Works every time!