Lodging your tax return can be a stressful task, especially if you’re not sure about all the details and deductions you can claim.
Did you know that forgetting just one key piece of information can delay your tax return by weeks?
To help you avoid any complications, this comprehensive checklist will ensure your tax return is completed correctly and that you maximise your potential deductions.
Why Do You Need A Tax Return Checklist?
Many Australians miss out on potential tax savings simply because they forget to include all eligible deductions or fail to complete sections of their tax return accurately.
Having a detailed checklist ensures that you are organised and confident that nothing essential is overlooked, whether you’re lodging your return online or via a paper submission.
Proper planning can also speed up the processing time, as errors or missing information often cause delays.
Your Tax Return Checklist
Before you begin the process of lodging your tax return, gather these vital pieces of information:
- Tax File Number (TFN)
- Personal details (including date of birth)
- Bank account information for refund deposits
- Health insurance details
- Income statements from all sources
- Records of deductible expenses
- Spouse and dependent information (if applicable)
Remember, organisation is key. Having these documents ready will streamline the process and reduce the likelihood of errors or delays in processing your return.
What To Check Before Lodging Your Tax Return?
Before lodging your business tax return, whether online or via paper, ensure you have completed all the necessary sections. Missing out on specific details can result in higher tax rates or delays in processing.
Here’s a simple checklist to help you:
- Write your tax file number (TFN).
- Correctly fill in your personal information, such as your name and date of birth.
- Include your bank details for any refund due.
- Completed relevant questions, such as IT1-IT8 and compulsory questions like M2.
- Filled in spouse and dependent information, if necessary.
- Completed all employment and income details, including salary, wages, and any lump-sum payments.
- Declared any work-related deductions such as car expenses, clothing expenses, and self-education expenses.
Tax Deductions: What You Can Claim
Maximising your tax deductions is crucial for reducing your taxable income, and knowing what you’re entitled to claim can save you a lot of money.
Below is a table containing common tax deductions that every taxpayer should consider:
| Deduction | Explanation |
|---|---|
| Work-related car expenses | If you use your car for work, claim either through a logbook or estimated kms. |
| Travel expenses | Flights, taxis, and accommodation related to work travel. |
| Work-related phone and internet | Costs associated with phone and internet usage for work purposes. |
| Self-education expenses | Costs for courses related to your current employment. |
| Home office expenses | Costs of working from home, such as utilities and office equipment. |
| Tax agent fees | The cost of hiring a tax agent can also be deducted. |
| Donations | Gifts to eligible charities are tax-deductible. |
| Protective gear | Costs like sun protection if you work outdoors. |
Important Considerations For Specific Situations
There are some specific tax rules too, which you will need to take into account as part of your circumstances:
- Under 18: If you were under 18 on June 30, 2024, fill in question A1. If you do not answer this question, you may pay extra tax.
- Visa holders. If you held a working holiday visa (subclass 417 or 462) or a COVID-19 pandemic event visa (subclass 408), answer question A4. This will ensure you’re taxed at the correct rate.
- Spouse’s Family Assistance Debt: If you have agreed to apply a portion of your tax refund to your spouse’s Family Assistance debt, include this on your return.
Lodging Your Return: Key Points To Remember
When you’re ready to lodge your return, consider these important factors:
- Lodgment due date: This will be, for most, 31 October in the following year to 30 June.
Lodgment options:
- Online through myTax. Processing takes around 2 weeks
- Through a registered tax agent
- Paper Lodgment. Processing may take up to 10 weeks
- Accuracy is required. Ensure you verify everything correctly – it may cause delays and penalties.
- Keep Copies: Keep a copy of your return and all supporting documents for at least five years.
What Happens After You Lodge?
The ATO will process your tax return, and you will receive a Notice of Assessment. The notice details:
- Your taxable income
- The amount of tax you owe or the amount refundable to you
- Changes made to your return
If there is a refund, this will normally occur in your nominated bank account within 5-10 business days after receiving your Notice of Assessment.
Take The Stress Out Of Your Tax Return
Ready to make life easy with your tax return? We understand how much stress your tax return process can bring, so at Leading Tax Experts we are there for you every step of the way. Our experienced tax agents in Melbourne help you get the correct tax deductions.
Let’s sort out the complexity surrounding your personal tax return so that you can get back to the important things-you’ll have more of what you earned. Reach out to us today for expert advice and maximum ease in getting your tax refund.
