Tax Tips: 7 EOFY Tax Return Tips for Individuals

Tax Tips: 7 EOFY Tax Return Tips for Individuals

Approaching the end of a financial year, it’s great to be prepared to take the stress out of lodging a tax return. Get a head start with these seven quick tips for individuals:

Australian tax returns are due October 31st

At the latest, individual tax returns for the previous financial year should be lodged by the end of October either online or with the help of an expert. With COVID-19 resulting in many of us working from home, the Australia Tax Office has introduced a new Shortcut Method to claim on expenses for working at home. Find out more about the new Shortcut Method and how to claim other working from home expenses on our How to Lodge a Tax Return for Working From Home Guide.

Keep your receipts

Don’t miss out on potential deductions by keeping a close record of any receipts and relevant documents. This will make lodging your tax return much faster.

records

Lodge your tax returns separately

Tax returns should be lodged individually, regardless of family or business relationships. The only instance a combined return is required is if you are in a business partnership but both partners will need to submit individual returns on top of that.

Claim work-related deductions

Home office expenses, work-related travel and memberships related to work are deductible. Any educational courses relevant to your employment or likely to increase your income are deductible. Hold onto any invoices or proof of enrollment for any upskilling events. Ensure you keep records and evidence that details work-related expenses.

home-office

Know the offsets to save

You may be eligible for a tax offset if your main source of income was from a pension or welfare allowance. Those that earn below the taxable income threshold may not need to submit a tax return.

Property Costs

Some of the advertising costs, council rates or maintenance fees of an investment property, can be claimed. Be sure to keep your records handy. The same principles apply to holiday homes that are rented out. Expenses can be claimed for the property based on the portion of the financial year it was rented or available for rent. Interest paid on the loan used to purchase an investment property can be claimed if all the money for the property was borrowed for the investment.

property

Pay the experts

Any expense related to your tax return, including the lodging of your tax return, can be deducted next year. Buying reference material, appealing to tribunals and obtaining tax advice can also be claimed.

Find the right expert connection to turn your to-do list to done and take the stress out of tax time. Request free quotes and get in touch with a tax accountant or bookkeeper today.