KUVERA | TAX TIPS
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TAX TIPS

The following Tax Tips are are recommended for all taxpayers:

1. DEDUCTIONS

We want to make sure that no one misses out on the deductions that they are entitled to.

That’s why we’ve put together some easy to understand guides on the most common deductions, so everyone can work out what they can and cannot claim:

  • vehicle and travel expenses, including travel between work and home
  • clothing, laundry and dry-cleaning expenses
  • gifts and donations
  • home office expenses
  • interest, dividend and other investment income deductions
  • self-education expenses
  • tools, equipment and other assets
  • other deductions directly related to your work

 

2. GET YOUR FIGURES CORRECT

On an average, each year ATO contacts over 350,000 people with errors in their tax returns.

Missing an income is the most common mistake they see.

It is important to report all your income, including pay from second jobs, foreign income, bank interest and any Government payments you received.

Many of the other common mistakes are easy to avoid, by simply checking that your tax return details are complete and correct before you lodge, you will avoid any unnecessary delays.

Some common errors to avoid include:

  • Supplying an incorrect TFN
  • Spelling errors in your name.
  • Supplying incorrect bank account details.
  • Providing your year of birth rather than your full date of birth.
  • Not completing the income test and/or spouse details.
  • Lodging duplicate returns for the same year.
  • Incorrectly using the Additional information schedule.

Lodging through a Tax Agent, like us, will avoid all the mistakes and you tax return will be lodged in a timely manner and you will get the refund in your bank account easily.

 

3. OVER CLAIMING

Although we want to make sure no-one misses out on their deductions, ATO will also be on the lookout for those trying to claim more than they are entitled to.

From few years  ATO is focusing on unusually high work-related expense claims across all industries and occupations.

Enhancements in technology and the use of data means that ATO are able to take a much broader approach than previous years; and identify and investigate claims that differ from what is normal across all industries and occupations.

ATO will also be paying particular attention to claims:

  • that have already been reimbursed by employers, and
  • for private expenses such as travel from home to work.

Three easy rules you can follow to make sure you’re not over claiming on work-related expenses:

  • you must have spent the money yourself,
  • it must be related to your job, and
  • you must have a record to prove it.

 

4. GET SORTED ASAP

If you are expecting a refund, please lodge your tax return asap after the end of the financial year but make sure to lodge before the 31 October deadline to avoid penalties.

 

5. USE A REGISTERED TAX AGENT

Most registered tax agents have special lodgement schedules and can lodge returns for their clients after 31 October.

For anyone thinking about using a tax agent for the first time or a different one to last year, it is important to contact them ASAP to qualify for their lodgement dates and avoid penalties.

It’s also important to ensure you are using a registered tax agent. Only a registered tax agent can charge a fee for doing your tax return. A list of registered tax agents is available on the Tax Practitioners Board.