Tax time is here once again and there are a few things to remember to make sure you get the best refund possible.
With single touch payroll (STP) most employees should have their payment summaries filed digitally through the Australian Taxation Office (ATO), meaning you can start lodging your returns sooner.
Carters Tax Advisory Founder and Director, Ben Carter said being prepared ahead of doing your tax will help you get more back.
“The people who are better prepared have a list of things they might think are tax deductible, even if we don’t include it or we adjust the way we claim it, just having a good summary of what they have spent is important,” he said.
“Most people are probably aware of the new 80 cent per hour rate during COVID that you can claim for a home office, but technically you need diary evidence for hours worked rather than an estimate, the same if you are claiming for driving, maintaining a logbook is recommended.”
Small businesses can also benefit this tax time with the extension of the instant asset write off provision.
“It allows any business to deduct the full cost of any capital purchases ranging from anything above $300, so that could be a printer for home or a laptop, all the way to a motor vehicle or machinery, like an excavator,” Mr Carter said.
“Small business owners need to make sure they have collected any receipts to have it in their summary for capital purchases and most importantly, make sure their accountant is claiming it in the right way.”
Mr Carter said tax payers may also want to do their returns earlier as they could be entitled to access bigger refunds this year.
“There was an extra tax offset this year, so most tax payers with taxable incomes between $40,000 and $180,000 are likely to receive up to $1,080 as a refund this year,” he said.
To ensure everything is done correctly, Mr Carter recommends using a tax agent.
“The ATO self-lodgement system is pretty user friendly but anything slightly out of the square requires good attention to detail and expertise on how much and what you can claim,” he said.
A graduate of Western Sydney University, Emily covers general news and politics for the Weekender.