Tax Return Tips

At this time of the year, we know people start to think about getting their tax returns lodged.

We created this checklist which outlines some of the main income and expenses you need to let your accountant know of when lodging your return.

We’ve also provided an overview of the types of tax offsets and deductions you may be entitled to claim, along with some other handy tips!

Income

  • Gross salary, wages, earnings, allowances, benefits, tips and directors’ fees as per the pay as you go (PAYG) payment summary supplied by your employer.

  • Lump sum and termination payments as per the PAYG payment summary supplied by your employer. Annuities or other pensions, such as account-based pensions, as per PAYG payment summary or statements provided by your financial institution or super fund.

  • Taxable Government allowances or pensions, such as the newstart allowance, youth allowance and age pension.

  • Interest earned as per your bank, mutual bank or credit union statements.

  • Dividends received or reinvested, including any franking credits attached as per the dividend statements provided by the company.

  • Distributions from partnerships and trusts (including managed funds) as per the distribution statement provided by the partnership or trust.

  • Details of any capital gains or losses incurred from the sale of (or other dealings involving) capital gains tax (CGT) assets, such as shares and property.

  • This includes dates and values of acquisitions and disposals, as per purchase and sale documents. Rent received from investment properties as per real estate agent statements or personal records.

  • Details of any foreign source income (including overseas pensions) earned or received, foreign assets held and any foreign taxes paid.

Expenses

  • Attendance fees and travel for work-related seminars, conferences and conventions.

  • Books, journals, subscriptions and your professional library expenses.

  • Home office set-up expenses such as depreciation on purchase of equipment, including computers, telephones and furniture.

  • Details of home office running expenses such as heating, cooling, lighting and cleaning.

  • Other work-related travel expenses, such as taxis, public transport and bridge tolls.

  • Purchase of compulsory uniforms, protective clothing and laundry costs for work-related purposes.

  • Self-education expenses, including fees, books, stationery, travel and parking.

  • Union fees and memberships to industry and professional organisations.

  • Purchase of sun protection, hats, sunglasses and sunscreen if you need sun protection at work.

  • Purchase of tools of trade or equipment for work-related purposes.

  • Telephone accounts for work-related calls.

Tax offsets and deductions

You may be entitled to the following tax offsets (rebates) and deductions for the year ended 30 June 2019.

PRIVATE HEALTH INSURANCE OFFSET

Depending on your income and age, you may be eligible for a tax off set of up to 33.4% on your health insurance. If you haven’t claimed a reduced premium from your health fund, then you can claim an offset in your tax return.

SPOUSE SUPER CONTRIBUTION OFFSET

If you made personal superannuation contributions on behalf of a spouse, there is a tax offset of up to $540 per year. This is available for spouse contributions of up to $3,000 per year, where your spouse earns less than $37,000 per year, and a partial tax off set for spousal income up to $40,000 per year.

Net medical expenses tax offset. You may be eligible for this tax off set until 30 June 2019, if you have out-of-pocket medical expenses relating to disability aids, attendant care or aged care.

SENIOR AUSTRALIANS PENSIONER TAX OFFSET.

If you are eligible for the senior Australians pensioner tax off set (SAPTO) you are able to earn more income before you have to pay tax and the Medicare levy. In the 2018/19 financial year, you will pay no tax on an annual income less than:

• Singles – $32,915
• Couples (each) – $29,609.

PREPAYING INTEREST

If you have an investment loan you can arrange to prepay the interest on that loan up to 12 months and claim a tax deduction in the same year the interest was prepaid.

What now?

If anything you’ve read here requires further classification, or you need further assistance in preparing your documents for your accountant or lodgement, get in touch with us here at Addept Accountants + Advisors.