Preparing for tax time doesn’t have to be a chore, or boring! Grab a coffee, open your laptop or files, and with the help of our checklists, you’ll gather your documents in no time.
Remember that in the process of organising your receipts, expenses, income, and other documentation for your tax return, you’re saving yourself money. The more attention you pay during this time, the better, and more accurate, your tax deduction will be, and the more money in your pocket.
The Australian Taxation Office (ATO) has already announced that in 2024, it will be looking closely at these three common errors being made by taxpayers:
- Incorrectly claiming work-related expenses: For instance, the ATO has revised the methodology for work from home (WFH) deductions. Therefore, we recommend you review such claims and refrain from just duplicating the prior year deduction;
- Overstating claims for rental properties: In particular, landlords often misclassify initial repairs or property improvements as repairs and maintenance (which are immediately deductible), as opposed to a capital improvement which is deductible over time;
- Failing to include all income when lodging: We recommend that you wait until at least the end of July to prepare your income tax return to ensure that all employment and investment information is available. In some instances, income from managed funds is not released until late-August, early September.
A tax return is essentially about two things: the money you earn, and the money you spend related to the work you do. People can overestimate some expenses, and then underestimate others. Knowing what you can claim and what you can’t means you won’t miss out on a tax deduction and remain tax compliant at the same time.
With the ATO this year focused on ensuring taxpayers get their tax lodgements accurate and complete the first time, our checklists will help you get started. Please give us a bell if you need help or advice on competing an accurate tax return for 2024.
INDIVIDUALS: DOWNLOAD END OF FINANCIAL YEAR CHECKLIST 2024
BUSINESSES: DOWNLOAD END OF FINANCIAL YEAR CHECKLIST 2024
SELF MANAGED SUPER FUND: DOWNLOAD END OF FINANCIAL YEAR CHECKLIST 2024
A note on working from home
Many people are working in hybrid working situations now and it’s very important to have comprehensive records for working from home just like you would for other tax deductions.
Working from home requires you to have a time sheet to log the hours you work and include breaks for lunch. You must also include a record of all your expenses such as:
- Utilities – electricity or gas for heating or cooling and lighting
- Internet and data expenses
- Mobile and home phone expenses
- Stationery and office equipment
- The value of depreciating assets such as office furniture, computers, laptops and software
- Repair and maintenance costs for depreciating assets
- In some cases, occupancy expenses (mortgage or rent) and cleaning.
Give us a bell to discuss your 2024 tax return
Please give us a bell on (03) 8790 7700 or send us an email if you have any questions about working from home expenses or your 2024 tax return. With changing tax regulations around home offices, property investments and the complexities of self-managed super funds, we’re here to advise you on tax planning and strategy, and to help you prepare an accurate and complete tax return for 2024.
