You only have a few weeks left to file your taxes for 2022. Ensure you have your income and deduction records to get the most money back from the Australian Taxation Office (ATO). Here are the key focus areas the ATO will be looking at:
1. Records on Expenses
The records you need to keep for your expenses usually come in the form of a receipt from the supplier. Your receipt must include the supplier’s name, the amount of the expense you are claiming, the date of the receipt or document, the date the expense was paid, and what the purchase was for, such as if you are claiming a work-related expense.
If you cannot provide documentation for a cash payment to a supplier, you will not be able to claim a deduction. However, the ATO may still allow the deduction if the evidence shows that the individual spent the money and is entitled to claim the deduction. This evidence could be a bank or credit card statement that shows the payment was made, to whom, and for how much.
2. Deductions for Working in a Hybrid Environment
To claim work-related expenses, you must have spent the money yourself and not been reimbursed, the expense must be directly related to earning your income, and you must have a record to prove it. To claim work-related expenses, you must have spent the money yourself and not been reimbursed, the expense must be directly related to earning your income, and you must have a record to prove it.
You can only claim expenses that are related to work. For example, if you work from home three days a week and travel to work two days a week, you can only calculate your phone bill for the calls you made for work.
3. Capital Gains Like Assets or Digital Currencies
You need to calculate your capital gain or loss whenever you dispose of a crypto-asset, NFT (non-fungible token), shares or property. The capital gain or loss is the difference between what you paid for the asset and what you sold it for.
Remember, you can’t offset your capital losses against your income and wages. The ATO takes its data collection process very seriously, so any unfair deductions or claims can be penalised heavily.
4. Deductions as a Rental Property Owner
Keep track of all the income you receive from your rental properties, including insurance payouts, retained rental bond money, and even short-term rentals. As all your rental property deductions are entered manually, avoiding complications or discrepancies is important. If you need help, seek a professional to avoid delays or problems with your refund.
This is just a small list of deductions that are common for individuals in Australia. We have written about different tax deductions for individuals before; if you want to read more about what you can claim as a business owner or a high-income earner, you can read them here.
If you still have questions about your tax refund and other individual income tax deductions, plenty of tax accountants and specialists around the country can help you.New Wave Accounting provides end-to-end accounting and bookkeeping services. We are tax accountants on the Gold Coast, working for various industries and creating tailored solutions for every client. We understand how individuals and businesses need reliable accounting and bookkeeping services, and so we’re here to help. Call us at (07) 55041999 to schedule an appointment today!