As the end of the financial year approaches, it’s a smart time to start preparing your personal tax return.
Being proactive now can help you avoid stress, maximise your deductions, and potentially increase your refund.
Whether you’re a salaried employee, small business owner, or investor, staying organised and informed will help you make the most of your tax position.
Key Personal Tax Tips
- Organise Your Records: Gather all relevant documents early, including income statements (from employers or Centrelink), bank interest summaries, dividend statements, receipts for deductible expenses, and records of charitable donations. If you’ve worked from home, travelled for work, or used your own vehicle, ensure you have supporting evidence such as a logbook or diary entries.
- Maximise Deductions: Understand what expenses you’re entitled to claim. Common deductions include work-related expenses (tools, uniforms, professional subscriptions), self-education, home office costs, and charitable donations. If you’ve made any personal superannuation contributions, ensure you lodge a “Notice of Intent to Claim” with your super fund to be eligible for a deduction.
- Review Your Private Health Insurance: If your income exceeds a certain threshold and you don’t have private health insurance, you may be liable for the Medicare Levy Surcharge. Having an appropriate policy can help you avoid this extra tax.
- Make the Most of Offsets and Rebates: Depending on your circumstances, you may be eligible for various tax offsets, such as the low and middle income tax offset, seniors and pensioners tax offset, or rebates for super contributions made on behalf of your spouse.
- Declare All Income: This includes your salary, rental income, investment earnings, government payments, cryptocurrency transactions, and any side hustle earnings. The ATO uses data-matching systems, so undeclared income is likely to be picked up and may lead to penalties.
- Plan Ahead for Next Year: Consider tax-effective strategies now for the coming year, such as salary sacrificing into superannuation, setting up a logbook for vehicle use, or reviewing your investment strategy to ensure it aligns with your tax goals.
Why You Should Consult an Accountant
While online tax tools and apps are readily available, the Australian tax system can be complex, especially with frequent changes to rules and thresholds. A qualified accountant stays up to date with the latest legislation and can help you identify all your eligible deductions, avoid mistakes, and reduce the risk of being audited.
For those with more complex finances—such as multiple income streams, rental properties, or share portfolios—a registered tax agent can help navigate the nuances of your return. They can also advise on legitimate tax minimisation strategies and help you structure your finances more effectively for the future.
Finally, using a registered tax agent gives you additional time to lodge your return—typically extending the deadline beyond the standard 31 October date, which can be a valuable benefit.
Conclusion
Taking the time to get your finances in order before 30 June can lead to a smoother tax season and better financial outcomes. Seeking professional advice ensures you’re not only compliant but also making the most of your tax position. Don’t wait until the last minute—book a consultation with a qualified accountant now to ensure your tax return is accurate, optimised, and stress-free.
If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.
This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.
(Feedsy Exclusive)