The end of the current financial year is 30 June with the new year beginning on 1st July. With End of Financial Year or EOFY quickly approaching, it’s important that you get your tax return checklist together and have the correct documentation to complete your tax return.
Here are 5 key things that are required when you lodge your tax return:
Payment summaries or Income statements – provided by your employer
Bank statements showing interest earnt - if you lodge your tax return online using myGov, the Australian Taxation Office (ATO) may prefill these fields already for you.
Records and receipts of work related expenses
Records and receipts of expenses and maintenance incurred on investment properties
Any other documentation showing forms of income
We’ll discuss some key practices to get into the habit of to keep you on top of you affairs during tax time.
Good record keeping is a must and is a continuous job that has no real end date. Having folders or an organised filing system that clearly labels the financial years containing expenses, deductions and income earnt will make it much easier to find what you need when doing your tax return. The ATO has a myDeductions tool, which is free to use and is available through the ATO app.
Income tax deductions you can claim
Are you aware of the deductions you can make at tax time? Visit the Australian Tax Office website to see what you can claim. Do you research so that you are not missing out on income tax deductions you could be entitled to. Keeping receipts for work and self-education expenses will ensure you don’t miss out on any deductions.
At this time of year, there are lots of sales and specials to entice you into buying things with your tax refund. Cars, technology and whitegoods are some of the popular items going on sale. Before hitting the shops, be sure to check that these are things you need and not just want, otherwise you might be spending dollars you don’t actually have. It might be a good idea to wait until you’ve done your tax return to see if you’re entitled to a refund.
Set yourself up for tax return success
If you are using a tax agent ask them ahead of time what you need to bring to help them complete your tax return. Keep this in mind for the following year so you are organised and have all your paperwork ready to go.
This will greatly help you with your tax return submission and can even save you time with your tax agent. The tax season runs until the 31st October each year. You have until this date to lodge your tax return. If you owe money, your notice of assessment will tell you how long you have to pay.
How to best manage tax refunds
It can be exciting to see a big lump sum payment hit your account. If you’re expecting a refund, have a think about what that extra money can go to. You may want to put it into a savings account, or contribute to a loan repayment. Be sure to manage your refunds wisely, and plan for the next financial year ahead.
Are you planning for the EOFY and need some extra help with your banking needs? Get in touch with the friendly team at Horizon Bank today and let us assist you.
The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant Product Disclosure Statement and Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.