We have rounded up seven tips to give you a head start in preparing your tax return and ensuring a seamless and less stressful process.
1. Find a trusted accountant
A qualified accountant can help maximise your tax return as they know all the ins and outs and won’t leave any stone unturned. They can make suggestions on deductions that you may not have been aware you were eligible for, or that you might have otherwise missed. The fee you pay for an accountant’s service is tax deductible.
2. Organise your receipts
It’s time to sort out your receipts so you can make your tax deductions. These days, some major retailers offer digital receipts so if you have lost the original, contact them as they may be able to retrieve a cope for you. If you have any work-related expenses valued at $300 or under, you do not need to provide evidence.
3. Know what you can claim tax deductions on
Knowing what you can claim can be quite tricky, but it’s important that you take time to look over what you can and can’t receive tax deductions on. You can find out via the Australian Taxation Office (ATO) and your accountant can help you out to make sure you’re not missing out on anything you might have overlooked.
4. Look out for scams
There’s no shortage of scams around tax time so be vigilant and always verify the source if you receive anything you’re unsure of. Examples of scams include emails purportedly from the ATO asking you to complete a tax refund review. Scam emails typically include poor grammar, a false email address, and they do not specifically address the sender. You can always verify the legitimacy of emails by contacting the ATO and always look for an @ato.gov.au account.
5. Embrace your charitable side
If you’ve been donating regularly to charity or would like to make a one-off gift to an organisation you support, you can claim a tax deduction. Donations over $2 are tax deductible so this means you can do some good and help reduce your tax.
6. Contribute to super
The end of the financial year is a great time to boost your super account. If you have any additional savings, putting this towards your super offers a number of tax benefits. If your spouse or de facto partner is unemployed or earning low income (under $13,800 p.a.), you can make a super contribution on their behalf and you could qualify for a tax offset.
7. Make the most of your investment property
As a property investor, you should be sorting out your paperwork so you can make the most of the deductions available to you. Gather all receipts for common expenses such as advertising for tenants, cleaning costs, council and water rates, and electricity and gas. If your property requires some repairs or renovations, now’s the time to have these done as they are tax deductible. You should also spend time reviewing what costs you need to keep or cut.
The end of the financial year is a busy period but by preparing early you can minimise the stress and potentially nab some extra cash in your pocket.
If you have any questions about your financial situation, how you can achieve your goals or protect your family, speak to your local Mortgage Choice financial adviser, today.