It’s officially a new financial year, which means it is time to do your tax return and pray to the ATO gods that you get a juicy return to get you through the next year of this cost of living crisis.
But if you’re considering hooking up with a guy in finance just so he can mansplain tax to you, let me save you the anguish and explain exactly how to do a tax return.
How to do a tax return in Australia
There are a few different ways to do your tax return in Australia. You can use a registered tax agent, if your tax is a bit complex — or you just CBF doing it yourself — or you can easily lodge it online on the ATO website.
An accountant may help you get the most out of your return, but will charge a fee, while the ATO’s myTax portal is totally free.
You can do your tax return on the myTax portal on your phone, tablet or computer — and you should get your return within 14 days of lodging.
The ATO portal will automatically pre-fill most of your information such as your income and Medicare payments, so all you need to do is upload the relevant documents and file your deductions.
MyTax is available for individuals, as well as sole traders.
You can access the myTax portal here.
What can I claim?
There are a number of things you can claim on tax, including work-related expenses, superannuation contributions, charity donations, and the cost of managing your tax.
What you can (and can’t) claim varies depending on your job, so it’s best so consult the ATO website or chat to an accountant for specific advice.
The ATO has industry-specific toolkits to help you find what you can claim based on your specific job title and industry, which you can view here.
If you work from home, you can also claim a portion of your household costs such as electricity, internet, heating and cooling, and lighting bills.
What is the ATO cracking down on this year?
Every year, the ATO cracks down on different areas to ensure everyone is following the law when it comes to their tax return. This year, the ATO is cracking down on work-related expenses (particularly, working from home), rental income, and undeclared income from side-hustles like Uber, online freelancing, and Airbnb.
“Last year, the ATO revised the fixed rate method of calculating a working from home deduction to broaden what is included, increase the rate, and adjust the records you need to keep,” the ATO website explains.
“These changes are now in full effect this financial year, meaning you must have comprehensive records to substantiate your claims as you would for any other deduction.”
The ATO has outlined three “golden rules” for work-related deductions:
- you must have spent the money yourself and weren’t reimbursed,
- the expense must directly relate to earning your income, and
- you must have a record (usually a receipt) to prove it.
While income from rental properties likely isn’t a concern many young people need to worry about, you could get stung if you’re not properly disclosing money you’re making with other side hustles.
“We see lots of mistakes in July where people have forgotten to include interest from banks, dividend income, payments from other government agencies and private health insurers,” ATO Assistant Commissioner Rob Thomson said.
While lodging your tax return early is tempting, Thomson claims it can double your chance of the ATO flagging your return.
“By lodging in early July, you are doubling your chances of having your tax return flagged as incorrect by the ATO,” he said.
“We know some prefer to tick their tax return off the to-do list early and not have to think about it for another 12 months, but the best way to ensure you get it right is to wait for just a few weeks to lodge.”
When is my tax return due?
If you are lodging your own tax return (see: not using an accountant), you need to file it by October 31, 2024. The deadlines are more flexible if you’re using a registered tax agent, but you do need to engage with them before October 31 to be eligible for the extended deadline.
It is best to contact the ATO as soon as possible if you think you’ll have issues meeting the deadline.
The post Here’s How To Do Your Tax Return And What The ATO Is Cracking Down On This Year appeared first on PEDESTRIAN.TV .
