Tax Tools & Tips

Australian Tax Office Requirements

  • The tax laws require you to have receipts relating to claims made in your return, otherwise they will not be deductible.
  • The number one tip for maximising your deductions is to keep your receipts and records.
  • Almost every available deduction from your income needs to be substantiated with written evidence.
  • Tax agents are bound by strict legislative provisions as to what they can claim for you including the requirement for documentary evidence of your expenses – either work-related (travel, uniforms, tools etc), donations, medical or business expenses.
  • It is equally important to keep your records of major capital purchases (eg cars, computers or other long-term assets) so that the correct depreciation can be calculated. Similarly, for assets subject to capital gains tax, accurate records including contracts for purchase and sale, will enable ITP to minimise the tax payable.
  • All receipts should be kept for five years after the lodgement date of the relevant return.
  • ITP can help a lot with the best method of claiming deductions but it is up to you to keep the basic information.

Tax Return Checklist

To assist ITP in completing your tax return as quickly as possible, please consider bringing in some of the following items:

Income earned statements

  • Payment summaries
  • Payment statements
  • Bank statements - showing interest and fees
  • Rental income
  • Social security, pensions, allowance statements
  • Capital Gains Tax statements
  • Deductible amount for pensions/annuities
  • Lump sum payments
  • Trust distribution statements
  • Tax statements from fund managers
  • Share dividend statements
  • Contract notes for buy/sell transactions
  • Tax statements from stockbrokers
  • Income stream statements
  • Life insurance Bonus Policy statements
  • Foreign sourced income
  • Partnership distribution

Employment income deductions

  • Receipts or evidence of work related deductions (such as car/travel/laundry/meals/tools/uniforms/union dues etc)
  • Union fees

Investment related deductions

  • Interest / fees on borrowing for investment purposes (bring statements)
  • Asset purchase / sale agreements

Offsets

  • Dependants – name, DOB, and legal responsibilities
  • Child care statements and governments (Child Care Benefits letter)
  • Zone – if living in a remote area
  • Sole parent/spouse/housekeeper/low income/aged persons
  • Spouse contributions to superannuation
  • Superannuation pension rebates
  • Private health insurance statement
  • Medical receipts (if over $1,500)
  • Imputation credit information from dividend
  • Statements

Investment property

  • Water charges
  • Bank fees
  • Details of when property was rented, including any rental or agents statements
  • Date when property was purchased
  • Capital costs
  • Interest on loans
  • Advertising fees
  • Agent fees
  • Body corporate fees
  • Borrowing expenses
  • Cleaning and general maintenance expenses
  • Council rates
  • Gardening/lawn mowing fees
  • Insurance premiums paid
  • Land tax details

Other deductions

  • Tax Agent Fees
  • Superannuation if self employed
  • Receipts of gifts/donations to charity
  • Recneeipts of self education expenses e.g. books, computer costs, car expenses
  • Financing lease statements
  • Income Protection Premiums (bring statements)

For new clients

  • Previous year’s Income Tax Assessment
  • ABN
  • PAYG Instalments paid
  • Copy of last year's tax return
  • Tax File Number

Other useful information

  • Credit card statement
  • Bank statements (with account name and number, BSB number)
  • Cheque butts
  • Loan statements
  • Previous year’s accountant’s fees
  • Last year’s tax return
  • Prior year tax losses
  • Any tax credit vouchers

Dependants Details

  • Amount of Family Tax Benefit received fortnightly
  • Education expenses for school aged children
  • Material Expenses

Education Tax Refund

Are you missing out? The ATO state that many eligible families did not lodge a claim for the Education Tax Refund (ETR) for the last tax year. The ETR allows you to get a refund of 50% of the cost of eligible education expenses up to a maximum of $779 p.a. for each secondary student and $390 p.a. for each primary student. Eligible expenses include computers and accessories, printers, educational software, internet connections, textbooks and stationery. (School fees, uniforms, transport and sporting equipment are not included.) You must be entitled to claim Family Tax Benefits Part A to be eligible to claim the ETR.