As we bid farewell to the 2022-23 financial year, the Director of the University of Tasmania Tax Clinic, Donovan Castelyn, has some top tips for people seeking guidance and support at tax time.
While the end of financial year brings about sales, promotions, and the hope of a healthy tax return, for some, it also comes with confusion, fear, and uncertainty.
Fortunately, services like the National Tax Clinic program can provide eligible individuals and small businesses expert guidance and support through the opportunities and obstacles of submitting a tax return.
Tip 1: No such thing as a free lunch
While there are certain thresholds for work-related and clothing, laundry and dry-cleaning expenses where receipts aren’t necessary, this doesn’t entitle you to an automatic deduction for those items. You still need to be able to reasonably justify how you came to the figures you are claiming.
Tip 2: MyTax is your friend
Consider lodging your return online with MyTax. MyTax is perfect for most individuals and sole traders with simple affairs. Most returns lodged through MyTax are generally processed within two weeks.
Tip 3: Let the ATO be your guide
The ATO has developed several industry-specific guides which can assist in the completion of your tax return. These guides provide excellent advice, from job and industry-specific deductions to tips on record keeping, and can be found here.
Tip 4: Wrangling receipts
Keeping track of your receipts can be a hassle, so consider using the myDeductions tool. This free online tool makes it easier to keep records in one place. Whether you lodge your own tax return or use a tax agent, using myDeductions can help you organise and store your records for when you’re ready to prepare your tax return.
Tip 5: Helping you help others
Did you know donations over $2 to a registered charity are tax deductible? The receipt for your donation will state if it is tax deductible. If you were thinking about making a charitable donation this financial year, there’s still time. You have until midnight on the 30th June to make tax-deductible donations that count toward your 2022-23 return.
Tip 6: Good things come to those who wait
A lot of information can now be pre-filled for your tax return. Sometimes waiting until later in July or early August means all this information will be loaded automatically and you have slightly less work to do. Remember, it is important to review all information pre-filled by the ATO.
Tip 7: Don’t double-dip on your WFH deductions
To calculate your working from home expenses, you can use the revised fixed rate method or the actual cost method. Remember, you can only claim the work-related part of an expense. If choosing the revised fixed rate method, you can’t claim a separate deduction for any of the expenses the revised fixed rate includes.
Tip 8: Unsure? Seek advice!
Tax time can be complicated, but there are many resources out there to assist those in need. Consult the ATO website, find a trusted tax agent, or if you’re eligible, talk to your local Tax Clinic.
Note: It's important to remember that each return is unique, and you should always be sure that your return is reporting the right information and that you are claiming deductions appropriately.
The University of Tasmania Tax Clinic is a community service focused on providing eligible taxpayers with free tax assistance and advice while allowing our students the opportunity to develop their skills.