After ATO’s current onslaught on tax deductions means that keeping a good record has become imperative. The ATO’s job is to find people who cannot prove their tax deduction claims, it has gotten pretty serious.
You cannot afford to forget about your purchases otherwise you will only be required to pay more and more taxes, it is better to keep a book of your finances
Like thousands of your countrymen you cannot let loose millions of $ in unclaimed tax deductions, get organized. If you are having trouble you can always hire a registered tax practitioner in Malvern East to aid you
It is not so hard to keep a record of your tax payments and your own expenses.
Keeping books of every transaction and payment you will be well equipped to answer any question by ATO regarding tax payments.
This will help you not only proving that you have payed your taxes but you will also be able to claim your tax refunds.
If you are going to hire a tax practitioner in Malvern East then you would be required to provide information about your income and expenses to get the right financial advice. Good record keeping doesn’t just make tax payment convenient, you will also find your life more organized than ever before.
Record keeping: Which records you need to keep?
So when it comes to bookkeeping, there are certain things you will most definitely need.
This is a list designed generally to help a number of people and cannot be associated with any one individual, so no need to worry when you see such a big list. However, you should be aware of different types of expenses and where tax payment will become obligatory so you are not left in hot water and also you may not know about claiming your tax refund.
First of all, you’ll need a documentation of all the money you earned and received during the year, including:
- Investments, rents
Note: make sure you are given a financial statement of the year by your employer, estate agent and fund manager so you are aware of all your yearly transactions.
Next, it is about your tax deductible expenses. This is where you boost your tax refund:
1. General expense
- Tax agent fees, including tax return preparation
- Income Protection costs
- Charity Donations
- Professional membership fees
- License/certificate fees
- Union Fees
3. Education expense
- Course fee
- Related travel costs
- Accommodation when working away from home
- Calculators and electronic organisers
- Computer related consumables
- Phone, mobile, iPads and phone accessories
- Briefcases and carry-bags
- Technical instruments
- Tools of your trade
Note: Any purchase of over $300 you will be required to claim a deduction for their decline in value (also known as depreciation) over a certain period rather than claiming the full purchase price on your next return.
- Personal car or vehicle costs
- Parking Fees
- Travel expenses (flights, taxis and public transport)
6. Home office expense
- Office equipment
- Home Office running costs (electricity, internet usage)
7. Clothing purchase and maintenance
- Protective clothing
- Uniforms (with logo)
- Laundry of work uniform and other protective clothing
Other things include newly bought assets or property or expenses of care for any disability
What more should I do?
What you need to do is, keep your tax records for at least 5 years, as stated by the ATO, especially when you have claimed deduction for decline in value, acquired or disposed an asset or you are in dispute with ATO.
Also, it is better to save your documents for as long as you can, it may help you in future.
All you need to do to is, organize your tax records and make a list of your tax deduction to keep you safe from all sides.