Get Prepped For Tax Time

The end of the financial year has come and gone. While you may have been using this time to soak up online sales and avoid thinking about having to do your tax returns, it’s now time to start getting serious about your finances.

Individual income tax returns are due from now until 31 October and in our opinion the earlier you get this in the better. Having your taxes done and dusted early will take the stress off your shoulders and give you the time and headspace to reflect properly on what you should be getting back on tax.

So, where should you start?

Start by compiling your paperwork.

If you’re doing your own taxes, cut out a good portion of time to go over your forms and get it right. Find a private, quiet space and set yourself up with all the information you need. From invoices to work-related receipts to bank or credit card statements, it’s important to have all necessary items on-hand and easily accessible.

Not sure what you can and can’t claim back on tax? Here are some of the most common tax deductions:

- Travel expenses

- Home office expenses

- Self-education expenses

- Tools and equipment expenses

- Charitable donations

- Personal super contributions

Our advice is to gather together any of the receipts you’re unsure about and speak to a tax agent or accountant.

Without the correct paperwork, you could potentially be missing out on thousands of dollars worth of deductions, so make sure you’re keeping track of your documents.

Speak to a professional

Having an accountant or tax agent in your corner will make life at tax time so much easier for you. If you’ve done the right thing and kept track of all your documents, you’ll now have the considerably easier task of handing those documents over to an accountant to sort out.

That messy pile of forms, may not always be meaningful to you, but they will mean something to a professional.

If you’re someone who leaves your taxes late or if you have trouble figuring out exactly how much you can claim back on tax, working with an accountant can resolve so many issues. If you’re working with a registered tax agent you can claim the cost as a deduction.

If you’re a property investor, you have even more to consider at this time of year, but in good news, you’ll also have more people in your corner. If you have a good team behind you, getting the best advice possible at tax time should be easy. Speak to your property manager or financial advisor to make sure you have a clear understanding of depreciation and investment loans.

Are you a super early bird who already has everything done for the EOFY?

Then it’s time to start thinking about the new financial year.

You’ve claimed what you need back on tax now, which means you’ve had plenty of time to go over your finances and reflect on what you’ve done right and wrong in the last financial year. It’s time to start thinking about how you could be achieving more financially.

Ask yourself these all-important questions:

Do you have an effective tax strategy?

What strategies do you have in place for your personal finances and what do you have in place for your business finances?

What more could you be getting from your tax return?

If you haven’t done so in the past start keeping a financial diary. Having a place where you store documents and information will make it possible to skip that EOFY rush next year. You’ll also be able to track your spending and saving in order to start developing better budgeting habits. Our top tip is to use your financial diary to track financial news over the year - if you’re in-the-know about rate cuts, loans and changes to the tax system, you’ll be better able to meet new challenges with flexibility over the financial year.

Are you looking for more financial insights to step into the new financial year with your best foot forward? Get in contact today to learn more.