Make sure you’re ready for tax time by getting your financial affairs in order now.
We have come up with five tax time preparation tips that will help get you started so you’re ready to go come 30 June.
1. Speak to a financial adviser or tax specialist
No two tax returns are ever the same, so it’s important you understand what you can and can’t claim by talking to a financial adviser or tax specialist.
Fees for ongoing financial and tax advice may be tax deductible, and their specialist knowledge is invaluable. You may even find you’re able to put things in place now that will reduce your end of financial year taxable income!
2. Get your paperwork in order
Are your statements, receipts and expenses all over the place? It’s worth taking the time to collate all the information you will need for your tax return to help make the process quicker and easier when 30 June rolls around.
You can organise your dividend and bank statements, receipts and expenses on the go by implementing a system that helps you manage this task during the year. It might be taking photos of receipts on your phone or using the ATO app to keep everything digital.
Make sure you visit the ATO’s website to find out whether you are eligible to claim home office expenses and determine what calculation method you will use if you have been working from home during COVID-19 so you can prepare.
3. Pre-pay some of your expenses
You might be able to claim deductible expenses against this year’s accessible income by pre-paying any eligible expenses.
Some expenses, such as investment loan interest expenses or income protection policy premiums, can be brought forward by 12 months and prepaid in the current financial year.
4. Generosity is key
Donating to a charity of Deductible Gift Recipient is not only a rewarding experience, it could also entitle you to a tax deduction. Any donations made to a charity before 30 June that are over $2 can be claimed in your upcoming tax return.
5. Take a look at your super
For some, topping up your super can be worthwhile ahead of 30 June. It will depend on your situation though, so make sure you visit the ATO website to check if you’re eligible to claim a deduction for personal super contributions.
Don’t leave your preparations to the last minute! Being organised and preparing for the end of the financial year ahead of time could save you time and money later.
This information is sourced from the Bridges Financial Knowledge Centre and is provided as a guide only. bcu does not provide financial advice and you should consult your accountant of financial adviser.