5 Top Tips for Employees at Tax Time
If you are a Salary or Wage Earner…then this information is for you.
As a Professional Bookkeeper and Registered BAS Agent, I get multiple questions from my client’s employees around tax time:
When will my income statement be available?
Who can help me lodge my tax return?
Do I need to keep my receipts? (spoiler alert - YES!)
What can I claim as a deduction?
If this sounds like you, then here are FIVE quick tips for you to make Tax Time as stress-free as possible!
Disclaimer: I am not a Registered Tax agent. However, if you need support finding someone that suits your needs I may be able to provide some recommendations.
1. UNDERSTAND THE SINGLE TOUCH PAYROLL (STP) SYSTEM
Employers are now obligated to lodge all payroll via STP. This ensures that all information regarding your pay is digitally stored with the Australian Tax Office (ATO). Once all information is finalised at the end of the financial year, this information is used to lodge your Income Tax Return. Employers are required to have this information finalised and ready to go by the 14th of July. This means, I wouldn’t be rushing off to lodge your return prior to this date, because information could be missing, and this will mean an amended tax return at a later date.
2. KNOW WHAT YOU CAN CLAIM
Do you know what you can actually claim in your job role? Have an understanding about what deductions you can & can’t claim come tax time. If you know now, then you can start collecting accurate evidence as we progress toward the upcoming end of financial year in July 2024. Check out the information that applies to you on the ATO website -
https://www.ato.gov.au/individuals/income-deductions-offsets-and-records/deductions-you-can-claim/
3. KEEP YOUR RECEIPTS
The ATO recognises documents you store digitally, including photos of your receipts, so you no longer need to keep all your paper copies in a shoe box. There are multiple receipt collection apps out there, one click and it’s stored safely ready for tax time. Who knew it could be so easy? The ATO has a FREE receipt storage app called myDeductions. Download the app and start getting organised now.
https://www.ato.gov.au/General/Online-services/Online-services-for-individuals-and-sole-traders/ATO-app/myDeductions/?=redirected_myDeductions#RecordkeepingwithmyDeductions
4. ENSURE YOUR DETAILS ARE UP TO DATE
The ATO are all about matching names and numbers. So, ensure that your address is up to date and your bank account details are correct, you don’t want that refund taking forever to hit your bank account.
5. INVEST IN A TAX AGENT
A wise man once said: "if you don’t know your stuff, find someone who does". This applies to lodging your Income Tax Return. You may think it’s easier, quicker, and cheaper to do it yourself, but the likelihood is, you won’t be completing it correctly and therefore, you could be missing out on further deductions that you never knew existed. Shop around for a Tax Agent who suits your needs and budget.
