Quick Tips to Make Tax Time Easier

It certainly is a busy time of the year and one of the things we all need to do is ensure we complete our tax returns. It is important be organised and to help you we have put together the following ‘quick tips’.

Your Income

Here we outline 6 areas of income that may apply to you. It’s important to make sure you have complete records and if you get stuck your Accountant can help you source this information.

Payment summaries

Payment summaries show the income you have received from your employer, your super fund and government departments such as Centrelink.

Back statements

These are important as they show the amount of interest you have earned which needs to be recorded as earnings.

Buy and sell share statements

These show your share trading transactions in terms of the shares you bought and sold.

Shares, managed fund or unit trust statements

These will help your accountant determine the dividends or distributions made to you.

Income earned overseas

It’s important to show any foreign income such as investments and pensions.

The Expenses You Should Be Claiming

Work related expenses

This is an area that is often misunderstood by clients. There are a range of work related expenses you can claim and a number you can’t. Your accountant can help you work through your particular circumstances and ensure you are claiming the maximum amount for you.

Private health insurance

Make sure you have your documents detailing your private health insurance outlining your premiums and level of cover.

Records relating to education

Again, like work related expenses not all education expenses are claimable. However, make sure you have your records and receipts and your accountant will work with you to ensure you are claiming your maximum amount.

Investment property expenses

If you have an investment property there are a number of expenses you can claim including depreciation, repairs and maintenance.

Spouse’s income and expenses

If you’re in a relationship your partner’s income and expenses may need to be disclosed to ensure you are calculating your entitlements correctly.

Donations

If you have given or contributed to a charity, then make sure you have a record of those activities to determine if and how much you can claim.

Medicare Levy and Private Health Insurance

The income threshold used to calculate the private health insurance rebate and the Medicare levy surcharge have been set at the 2014 -15 levels for 3 years. This came into effect on 1 July 2015.

This may impact your individual circumstance by moving you into a higher private health insurance rebate threshold if your income increases.

We hope these quick tips help you organise your tax return for 2015/16 and remember your accountant can help you make the process easier and ensure you have a tax strategy in place.

If you would like to know more about tax and in particular your tax strategy then please contact me at rose@rbgprivate.com

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