Follow our advice to make lodging your tax return simpler than ever.

The financial year ends on 30 June, so it’s the perfect time to check that you’ve got all your facts and figures together.

Lodging your tax return online is the simplest and fastest way to go, but most of this advice will also be helpful if you’re lodging a paper tax return.

Personal income tax

Before you start, gather together your tax number, statements of your year’s income (such as your salary, investments, pension and rental income), bank account tax statements, health insurance tax statements and Centrelink records. Some of this information will have been sent through to the tax office directly and may have been pre-filled into the return, but you will want to double-check the figures as you fill in additional details.

You will also need the tax details of your partner if you are married or in a de facto relationship, because family earnings can affect Centrelink entitlements and Medicare levies.

Diarise some time to fill in your return – perhaps two hour-long sessions, using the first hour to fill in the return and the second session to add in any outstanding details and to do a final check.

Hot tip: if you lodge online you need to download the latest e-tax software and it will only work on computers with certain capabilities – for instance, the 2009 e-tax software didn’t work on Apple Mac computers. If you leave your return to the last minute, you may have a nasty surprise if your computer isn’t compatible!

Small business tax

If you’re operating your Tupperware sales as a small business, chances are your accountant will be lodging your tax return. But whether you’re handing over papers to a professional or completing your return yourself, good organisation will save you time and money.

Make sure that you have got all the receipts for expenses you can claim tax deductions for, so you get the maximum saving. Ideally you’ve been filing receipts each month in separate folders for rent, telephone, travel, etc. If not, sort out your receipts now, before you hand them over to your accountant or start to fill in your return, so you have the final figures at your fingertips.

Once you have completed your return, you are required to hold onto some of these paper records for up to five years, so label them and archive them, with a copy of the return you submitted.

Hot tip: the amount of tax you can deduct in the case of a home office may depend on how much space your business takes up as a percentage of the floor area of your home. Take some time to measure your office accurately and take a few pictures of your workspace as an additional form of documentation. Running a home office can have capital gains tax implications if you sell your home, so it might be worth getting expert advice from your accountant or a tax consultant if you have moved house this financial year. Make sure you keep accurate records of when you started your business, as well as how much space it takes up.

Remember, you have until 31 October to lodge your tax return, unless it’s lodged by a registered tax agent on your behalf. If you can’t make the deadline, contact the tax office on 13 28 61 to see if you can get an extension, otherwise penalties may apply.

Get some help

Terrified of tax returns? Find a company or tax accountant to lodge your return on your behalf:
* Visit the National Institute of Accountants: www.nia.com.au or call 03 8665 3100.
* Visit www.accountantsrus.com.au, or call 1300 829 626.

Lodge online
Lodging your personal tax return or business reports and returns online is simple, and your processing times may be shorter. Visit www.ato.gov.au to download the latest version of e-tax software (which is free) and lodge online.

Expert tax tips
Financial adviser Zuraida Ariffin says: “It’s critical that business owners keep good records, so that you can claim the tax deductions that are due to you. My own strategy is to use one designated credit card to pay for all my business expenses. That way, I have an itemised list of expenses that I can match to my receipts at tax time.”

If you’re worried about accidentally overspending on a credit card, a Visa debit card will give you itemised billing, while ensuring that you only spend money that’s in the account, rather than going into debt.

As a longer term tax tip, Zuraida advises you to look at putting extra money into your super fund. “Voluntary contributions are concessionally taxed at the lower rate of 15%, so you boost your retirement nest egg and keep more of your hard-earned salary.”

Zuraida has her own business: Zuraida Ariffin Wealth Creation, in Canberra. Zuraida is an Authorised Representative of Matrix Planning Solutions. The Financial Planning Association of Australia has around 12,000 registered members. To find a financial planner, visit www.goodadvice.com.au or call 1300 626 393.