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13
Jun 17

Four Things To Know Before Tax Time

by Matthew Ikin
FOUR THINGS TO KNOW BEFORE TAX TIME

As we edge closer to the end of yet another financial year, it can only mean one thing: tax season is almost upon us, bringing with it confusion and paperwork. For those getting a positive tax return, this can be an exciting time of year; however, for a majority of Australians, tax time brings an unwanted bill. Whether you are filing your own tax return or using a tax accountant, here are four things to know in preparation for tax time:

 

When your tax return is due

As the financial year comes to a close on 30 June, it is now time to begin preparing your tax return. Within a couple of weeks of the financial year ending, your employer will send you a document called the ‘Group Certificate’, which indicates how much taxable income you have received over the past year. According to the Australian Tax Office website, if you are lodging your tax return yourself, it is due by 31 October. Keep in mind that the date your tax return is due is determined by your individual situation; so be sure to consult a tax accountant to ensure you have your return lodged at the correct time.

What you can claim for

When it comes time to lodge your tax return, knowledge of what you are allowed to claim can help you lower your overall tax bill, meaning more savings in your pocket. For example, did you know that work-related expenses such as purchasing uniforms may be eligible to include in your tax return? Make sure you keep receipts for any work related expenses incurred over the year, as they will be needed in order to get your return.

Start compiling documents

Although we are still in FY17, many of the documents you need to lodge your tax return will be currently available. To avoid a mad rush at tax time, start compiling the documents that are available now so when it comes time to 30 June, you are in the best position to lodge your return as soon as possible. These can include last year's tax return, records of shares purchased, and insurance details. For a more comprehensive list of documents to gather for your return, click here.

Consider seeing a tax accountant

Tossing up whether or not an expense is tax deductible? Instead of leaving it to chance, going to see a tax accountant will help strengthen your understanding of lodging a tax return, as well as potentially reducing your tax bill.

Although there are fees involved with seeing a tax accountant, this expense is tax deductible in next year's return, meaning that you are only out of pocket initially. When seeing an accountant for the first time, they will want to get an understanding of your current financial situation; meaning you will need to provide them with documents relating to your income, expenses and investment properties.

Disclaimer: Any information provided in this blog is of a general and information nature only. While all reasonable care has been taken by Pioneer Credit Connect in compiling this information Pioneer Credit Connect makes no representations or warranties, whether express or implied, as to the accuracy or suitability of the information contained in this blog.