The tax year calendar begins on the 1st of July and ends on the 30th of June of the year after, and the tax returns, in Australia, are due on the 31st of October of that year. That basically means that the taxation period is almost upon people living in Australia, and that there are many people that are frantically getting all their calculations done. For those that want to calculate their own tax returns, there are a few things that they have to look out for, all of which are mentioned below.
Going online and lodging the tax return is certainly a good idea, as not only will it speed up the entire process, but if you’re expecting a refund, you will get it much faster in comparison to those that do not lodge it online. Paper returns may take up to 50 business days for you to receive your returns, on the other hand, lodging it online will only take ATO 12 business days to get back to you. Do you see the difference now?
For those that have investment portfolios, this is your glorious chance to pay off your interest beforehand. That said, you have to be careful and ensure that you are not breaching any repayment rules, so in other words, if you have an interest that requires payment before the 30th of June of the next year, you have to make sure to pay for it by the 30th of June of the current year, as it won’t work otherwise.
For those that own rental properties, they have to ensure that they are claiming the right amount of deductions, depreciations and capital works on that property. The best solution would be to ask a surveyor for help and to have that rental property thoroughly assessed. Don’t forget to create a report outline relating to the depreciation of the property that will be claimed on the tax return every year.
Health care insurances
This is a way to ensure that you are getting exactly what you should from the government in your tax return. ATO can easily charge you for Medicare surcharge, and in order to avoid that, you need to have a private health care insurance level that is right for your income. And so, checking the level of coverage that your insurance gives you is a smart idea, as it can make a difference in your tax.
Check and check again
The expenses related to work need to be checked a few times to ensure that they are legitimate claims, as this is where ATO can cause trouble for you. And if you have donated to any charities, don’t forget to claim for every single one of them either. The best way to calculate that is by keeping constant, updated reports.
The taxation period can be quite a hassle if not handled appropriately, and so, the best thing you can do is to keep up-to-date records of everything to handle this tax period smoothly.