Ways to Maximise Your Return This Year

As you’re in all probability shortly studying, tax time is right here. Accountants are getting ready, enterprise homeowners are getting aligned and freelancers are in all probability questioning what the hell they need to be doing (a minimum of I used to be when that was me).

To assist get you successfully sorted forward of tax time this yr, we’ve pulled collectively a information that can cowl all of your burning questions on claims, deductions, the ATO’s guidelines and anything you may want to know. Because these items will be type of overwhelming, and also you need to make sure you’re getting your tax return proper.

Let’s dive in, we could?

When is tax time in Australia?

Okay in order a fundamental start line, the Australian monetary yr runs from July 1 by means of to June 30 the next yr. So, tax time tends to kick off on the finish of the monetary yr (or EOFY).

Per the ATO website, in 2021 they started processing tax returns from July 7. However, the cut-off for lodging your tax return is October 31. If October 31 falls on a weekend, the closing date would be the subsequent enterprise day after October 31.

If you’re utilizing the companies of an accountant they may have a later last deadline.

Top 5 methods to maximise your tax return

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Mark Chapman, Director of Tax Communications at H&R Block has shared a listing of helpful suggestions that will make it easier to maximise your tax return this yr. Here’s hoping it helps get your subsequent monetary yr off to a powerful begin.

Utilise the ‘temporary full expensing’ measure

Chapman shared that if you happen to’re working a enterprise, the temporary full expensing’ measure “allows you to claim an immediate tax deduction for all capital purchases (irrespective of the cost), rather than depreciating the cost over several years, as used to happen.”

This, he defined, can be utilized for tech purchases, instruments and even workplace furnishings – relying on your small business.

“The allowance is available to all businesses with an aggregated turnover of less than $5 billion,” Chapman shared.

“Remember, as well as making a purchase, the asset you acquire also has to be used or available for use in your business, so realistically you need to get the item delivered and installed by 11:59PM on 30 June.”

Make tax deductions in your residence workplace

With work-from-home setups being extra widespread than ever earlier than, it’s necessary all of us perceive the tax assist accessible with respect to that.

Chapman defined:

“If you are in employment but work from home, either occasionally or all the time, you are entitled to deductions for costs arising from working at home.”

You can declare the next bills:

  • Heating, cooling and lighting
  • Cleaning prices
  • Decline in worth (depreciation) of residence workplace furnishings and fittings, workplace gear and computer systems (for objects over $300)
  • Computer consumables, stationery, phone and web prices 
  • Items of capital gear (resembling furnishings, computer systems and related {hardware} and software program) that price lower than $300 will be written off in full instantly

If you need extra element on this, try our full information to WFH tax claims.

Don’t neglect automotive deductions

On this one, Chapman shared that automotive claims will probably be getting a variety of consideration from the ATO this yr because it’s typically anticipated that these bills will probably be decrease than in earlier years due to the lockdowns.

“If you employ the log-book methodology, now’s the time to test that your log-book is up to date and that you’ve got all of the receipts, invoices and information of journeys which you will want to calculate and substantiate your declare.

“If you use the cents per kilometre method, you will still need a record of all work-related journeys during the year,” he stated.

Either method, be additional diligent in getting this data proper.

Make a tax-deductible tremendous contribution

For those that occur to have a little bit spare money mendacity round proper now (good on ya), Champan urged “making a private contribution into your tremendous fund“.

He defined:

“Provided the total amount of your contributions (including the contributions made on your behalf by your employer) does not exceed $27,500, this can be a great way to boost your retirement savings and claim a tax deduction for the personal contribution.”

If you select to take this selection, he shared you need to accomplish that earlier than June 30 and you will want to alert your super fund of the motion, too.

Seek out an skilled’s recommendation

The smartest thing anybody can do in the event that they’re feeling uncertain about tax time is to attain out to an accountant. Chapman shared that “they can identify exactly what you need to do to get into shape for the 2022 tax season and maximise your deductions”.


Planning on lodging your tax return your self this yr and wish extra recommendation? While, in fact, a monetary skilled or accountant is your finest supply of knowledge, there are another nuggets of knowledge that will make it easier to out this tax time.

Determine your tax bracket

Tax Time return
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Simple however very helpful, the ATO provides a transparent information to tax brackets on its web site which provides you with a basic information to the type of tax your wage is required to pay.

The under data is sourced via the ATO.

Resident tax charges 2021–22
Taxable earnings Tax on this earnings
0 – $18,200 Nil
$18,201 – $45,000 19 cents for every $1 over $18,200
$45,001 – $120,000 $5,092 plus 32.5 cents for every $1 over $45,000
$120,001 – $180,000 $29,467 plus 37 cents for every $1 over $120,000
$180,001 and over $51,667 plus 45 cents for every $1 over $180,000

Useful apps for receipts and extra

If you’re type of forgetful (like me) and wish an excellent place to retailer all of your related tax time data, we’ve pulled collectively a listing of 5 helpful apps designed exactly for that.

Tax suggestions for freelancers

If you’re a freelancer or sole dealer, this tax time enterprise will be complicated. You’ll want to maintain observe of all of your earnings and the numerous bills you incurred throughout the yr – it seems a little bit totally different to salaried employment.

Lucky for you, nonetheless, we have now a whole information prepped for you right here.

What occurs if you happen to neglect to lodge your tax return?

While we hope you have got your calendar alerts set and your paperwork so as, there’s a likelihood that somebody someplace might neglect to file their tax return this yr. If that’s the case, be warned that you could be face monetary penalties.

Read extra on that entire scenario right here.

How to file my return

Assuming you’d like to keep away from the aforementioned messiness, listed below are some easy steps to have in mind when lodging a tax return with the ATO.

In a nutshell, your tax return will element how a lot cash you earned prior to now monetary yr and what bills or offsets are related to you.

The ATO website reads as follows:

You can lodge on-line utilizing myTax, by means of a registered tax agent or full a paper tax return. Your tax return covers the earnings yr from 1 July to 30 June. If you want to full a tax return you need to lodge it or interact with a tax agent, by 31 October.

The newest update in this space is that the ATO is warning people to keep away from risking their tax return being delayed by making certain you solely submit your return as soon as your earnings assertion is marked as ‘Tax ready’.

In a press release on this, Assistant Commissioner Tim Loh defined:

“You can lodge on 1 July, but you are punting with your tax return by risking delays to any refund you are owed. If you forget to include everything, you may end up answering questions from the tax office,” Loh stated.

“We pre-fill some of the information in your tax return to help you to get it right the first time. We pre-fill information such as your wages, health insurance and interest from banks, this process is usually finalised by late July.”

“Thanks to pre-fill, waiting a few extra weeks can make lodging your tax return online quicker and easier.”

In brief, don’t rush the method!

This article on tax time has been up to date since its unique publish date.