Tax time can be confusing and complex. Here are some quick tips to make the process a breeze.
Tax Tips 101
Every financial year (1 July – 30 June), you will earn some form of income which you will need to report in your tax return.
The most common types of income are:
- Employment Income (including wages and salary)
- Investment Income (including interest, dividends, rent and capital gains)
- Income from the sharing economy (including ride-sharing, airbnb type rental income, payment for skilled services, supplying tools or equipment, completing odd jobs, errands or deliveries)
Other types of income that are less common but still important to include if you have them:
- Super pensions, annuities and government payments
- Business, partnership and trust income
- Foreign Income
- Other Income (including compensation and insurance payments, discounted shares under employee share schemes, and prizes and award
Our team at POP can advise you on the meaning of each to make sure you’re including everything you need to.
This is where most people get stuck and here is how we clear it up.
The three golden rules to claim a deduction are:
- You must have spent the money yourself and weren’t covered for it
- It must directly relate to earning your income
- You must have a record to prove it
See, that wasn’t so hard was it.
The most common deductions for expenses relating to work are:
- Vehicle and travel expenses
- Clothing, laundry and dry-cleaning expenses
- Home office expenses
- Self-education expenses
- Tools, equipment and other assets
- Other work-related deductions
- Cost of managing tax affairs
- Gift and donations
- Interest charged by the ATO or from investments
- Personal super contributions
- The list goes on…
The hardest thing during tax time is understanding whether you are eligible to claim these deductions. That’s why we have our friendly team on chat, ready to provide you helpful answers.
Once you have these two essential elements, you will have most of your tax return completed. When using POP, our tax specialists will review your information to ensure it is compliant with the ATO and that you have Maxed Your Tax back.
You can find more information about other sections of the tax return here:
- Personal Details
- Family, Health & Other
- General Questions
- I’m due a tax refund
- How do I pay tax?
- I’m worried that I am doing it wrong