EOFY – What can I claim?

The EOFY (End of Financial Year) 30th June 2020 is looming and the thoughts on many people’s minds is what can I claim when I lodge my annual tax return?

The ATO has worked very closely with tax professionals all around Australia to create practical factsheets to help YOU claim deductions accurately.

Here is a list of Professions, along with their website link to the Australian Taxation Office to help you know what dockets, records and diary records you need to have to accompany your tax return this 2020 financial year.

Universally, the following applies to “any” tax return regardless of your profession.

• The expenses must have been spent by yourself and not been reimbursed by your employer
• The expense must be related to your specific career or field of employment
• The source receipts / invoice or paperwork must be kept as proof of the expense
• Use the MyDeductions app to keep track throughout the year of your work expenses

Cleaners

Doctors and Medical Professionals  

Engineer

Fire Fighter

Hair Dressor | Beauty Therapist

IT Professional

Lawyer

Media Professional

Nurse, Midwife or Carer

Performing Artist

Pilot

Police Officer

Real Estate Professional

Teacher

Tradie

POP UP QUICKIES

Many employees go to a tax return pop up clinic in the shopping center hoping to gain $1000’s of dollars in tax returns for the price of a $99.00 quickie. The days of a dodgy tax returns are no longer, the Australian Taxation Office will examine your return and may message you with a “Please explain” letter.

DOCUMENTATION / EVIDENCE IS REQUIRED FOR DEDUCTIONS

You are required to substantiate each and every return with the following:

• Provide diary entries of work completed, phone calls made and hours worked
• Provide a log book either physical or online to prove km’s traveled for work
• Provide receipts or other paperwork for your deductions
• Substantiate your uniform deductions
• Ensure that all / any deductions have documented evidence at all times

FREE TAX LODGEMENT IS AVAILABLE

There are free options available to you when it comes to completing your tax. I have my boys use this option every year with the use of their mobile phone.

This year with Single Touch Payroll (STP) most of your employed information will be “pre-filled” by the Tax Office and your payment summary available on your MyGov application.

LINK YOUR MyGov with the ATO

MyDeductions App

Another free application you can use is called MyDeductions, you can use this free service all year round to take photos, log your km’s travelled for your work and keep notes. This information can be shared by email to your tax agent at tax time or used to verify with the Australian Taxation Office your legitimate deductions.

This app is also an excellent option to keep track of any work you were paid in cash for, but not recorded via Single Touch Payroll. Remember, that ALL cash earned is legally required to be declared, this may include:

• Working for a friend, acquaintance or stranger inbetween employment for cash
• Working on weekends in your profession for cash work in hand
• Online work accepted and paid for via fiverr, Upwork or Freelancer
• Recycling money
• General Interest or term account interest paid by the bank into your account
• Investment income from property or shares
• Airbnb or renting out a room in your home
• Any other cash payment for work completed for the year

MyTax App

Lastly, there is the pre-fill function you can use with MyTax. Information that may be available automatically:

• Bank interest
• Employment wages
• Health funds
• Other

You need to look over this information and see if anything has been “missed”. The steps are very easy to follow and it is not difficult for you to fill in missing information you may have recorded via MyDeductions app or manually.

LODGING WITH A TAX AGENT

Do not automatically assume that by using a tax agent you will get more tax returns when you are an employee.

If your tax situation is more completed due to investing in shares, rental property investments, affected by bush fires with insurance payouts or other more complicated entities like a family trust structure it will be very important to seek the expertise of a registered tax agent. Getting your tax return accurate and lodged in a timely manner is a priority!

TAX LODGEMENT AS EASY AS 1, 2 & 3

I hope by sharing this information I have made your lodgement of your tax return much easier.

Amanda Hoffmann

Amanda Hoffmann is a registered Tax Practitioner / BAS Agent No.18613005, Associate of Finance, Xero, Myob & Quickbooks Proadvisor / Trainer and a Consultant for the Australian Taxation Office.

She says she is more than just a bookkeeper with experience in real estate investing, social media, podcasting, blogging and recently recording monthly youtube episodes

Amanda loves to teach smart, easy online cloud solutions and fix messy bookkeeping. Follow her on social media and say “Hi”