It’s not exactly the highlight of the year but getting ahead of your taxes means fewer headaches. Whether it’s considering your deductions, filing your return or avoiding scams, we’ve got some tips to help make it smooth sailing.
How to prepare for tax time
Your tax return is a wrap-up of all the income you’ve earned and the expenses you can claim during your financial year. When it’s time to lodge your return, you’ll need to show how much income you’ve earnt and your tax deductions claimed. If you’re on a salary (full-time, part-time or casual), your employer has likely helped you prepay the tax payable on your salary and the details should be automatically pre-filled in your return—too easy. But if you own investment properties or you’re self-employed, it’s a different story. You’ll need to keep track of your income and set aside money to pay your tax when it’s due.
Tax laws can be complicated so it might be worth calling in a professional. A tax agent can take the stress out of the process—and maybe even help you get a bigger refund. “One advantage is tax accountants stay updated on tax laws,” says Stuart Waugh, director and tax expert at Altus Financial. “They can answer your questions and assess expense eligibility to maximise your return.” In other words, they know how to help you get the most out of your tax return.
The deadline to lodge your return could be as early as 31 October and you can do it yourself through the ATO’s online myTax tool. If you’re going through a tax agent, make sure you contact them and are part of their lodgement program before your due date. And whatever you do, lodge on time—late lodgements can come with penalties and that’s one headache you really don’t want.
“Tax accountants stay updated on tax laws and can answer your questions.” - Stuart Waugh, director and tax expert at Altus Financial
What you’ll need
- Your Tax File Number (TFN), which can be found online via myGov or on your payment summary.
- The bank account details where you would like any tax refunds to be deposited.
- Details of any additional income such as bank account interest, rental income, investments or employee share schemes.
- Receipts and records for any expenses you may be able to claim, including car, home office and education.
- Receipts of any tax-deductible donations you’ve made to charities.