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3 Pro tips – How to handle your tax affairs like a pro

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30
Jun

This article is written for people who first lodge their tax return. The article contains basic information that outlines what’s tax payer’s role in income tax return. Whether you are doing it on your own, using an online tax service or, going with a tax agent, these three tips will make your tax return effortless.

  1. Keep your record


    First of all, regardless of your status of income, keeping your record and relevant information handy is vital for your income tax return. This is because, at the end of the day, you will be the major supplier of the information for your tax return. Poor record keeping means loss of opportunities for possible deduction claims or, more payable. Unfortunately, this often causes an unnecessary delay in the process in the beginning. If you want to avoid the hassle and maximise your chance to get the most return or least payable, you must keep the record. Generally, you need to provide the record regarding the income you received and record for expenses to either the online tax service or the local tax agent. Also, failure to keep the record might be penalised by law. You are required to provide the record of payment you received, expenses related to the payment, and any acquisition or disposal of assets, gift& donations that is deductible, government payments. In particular, if your work involves travelling in your own car or you’re a business owner use your car for work, make sure you have the proper record to claim all your expenses. You have to provide how much proportion of your travel is private and work-related. If you are first time user of the logbook, check if your record follows all requirements provided by ATO. (Link: https://www.ato.gov.au/business/income-and-deductions-for-business/deductions/motor-vehicle-expenses/claiming-motor-vehicle-expenses-as-a-sole-trader/logbook-method/) Of course, make sure you have your personal details include TFN and bank account details where you want to receive to fill the form. After all, gathering all information is time-consuming unless you are not up to date. If you are confident in your record keeping, it will indeed save your time greatly.

  2. Be on time

    There is time constraint in income tax return. Sometimes you might take time to get all relevant record from third parties. Or you don’t lodge because there isn’t any income that year if that’s the case. Bad news though, there is a deadline for individual tax return and yes, you still have to complete a non-lodgement advice form. If you lodge your tax return, make sure you lodge before the deadline which is 31st of October. If you are using a tax agent, there is more room to extend the period. Yet, you still have to be registered with a tax agent before 31st October. Failure to meet the deadline will result in penalty and fines. Links: https://www.ato.gov.au/general/interest-and-penalties/penalties/failure-to-lodge-on-time-penalty/

  3. Get advice where needed

    If you followed first two rules, you are in good place to start your income tax return already. But, here is where things get tricky. When you are not confident whether you're entitled the benefit or, if you have to include certain income you received, or when you are entirely not sure what sort of benefit you can receive, your tax adviser is the best go to professional. (Link: why hiring a professional tax service is better off?)

Do you need any help? Taxshark has an excellent team of tax expert ready for you to support.


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