By Emma Baird and Saumya Biskudanaruppage, Accountants
Tax time is coming! As the end of the financial year approaches, every income earner is reminded of the essential tasks of collecting and submitting all tax related documents to enable the preparation of your tax return.
We as tax agents are here to guide you throughout this process. We have the expert tax knowledge and experience to advise what you need to do and make the process of lodging your and your entity’s tax return as simple as possible.
We are in the final couple of weeks before the end of the financial year, however there is still time to help reduce your tax payable. Here's three ways it can be done.
- Support a cause that is important to you and donate. Donations to approved charities over $2 are tax-deductible which is a great way to reduce your taxable income and helps others in need.
- Make a personal superannuation contribution. You may be able to claim up to $25,000 (depending on other contributions that have been made during the year) with a notice of intent to claim a superannuation deduction from your superannuation fund. This amount will be taxed in your superfund at 15% rather than at your marginal rate which could be significantly higher.
- Small business entities can take advantage of the instant asset write off if they need to buy any capital assets that cost less than $150,000. Assets must be purchased and ready for use before 30 June 2021 for a full deduction.
Here’s what you need to know and what we as tax agents require to process your return
We require information in relation to any deductions that you are wishing to claim, at times we will request copies of invoices or receipts. If you have a business or rental property, we will need information on all income and expenses that have been incurred throughout the financial year.
The ATO will require for certain documentation to be kept in relation to deductions claimed. Most deductions will require receipts/invoices. Some deductions do not require a receipt but evidence of how you came to the deduction amount will be needed. For example, if you are claiming a car-related deduction and using the km method, you do not need to keep receipts but will require evidence of how you came to the business-related kms for the year.
After we have prepared your tax return, we will provide it to you to review and sign once you are sure everything is correct. When we have the signed documentation back, we will lodge your tax return with the ATO. It can then take up to two weeks to be processed.
You can also download our handy 2021 Individual Tax Return Checklist for an extensive list of what we will require.
The above is general information, please contact us to discuss your specific circumstances.