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.
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.
You are required to substantiate each and every return with the following:
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.
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:
Lastly, there is the pre-fill function you can use with MyTax. Information that may be available automatically:
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.
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!
I hope by sharing this information I have made your lodgement of your tax return much easier.
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”
BAS Agent and Bookkeeping