The end of financial year (EOFY) is approaching and many businesses and individuals are getting ready with all the paperwork and other EOFY matters.
Tax returns can sound complicated and messy, but believe me, they are not. If you had your books done properly throughout the year by a professional, it will be simpler than you thought.
What you need to declare
You must declare all the income you received from 1/7/2021 to 30/06/2022. This can include:
- Employment income.
- Superannuation contributions.
- Government benefits and allowances.
- Investment income (eg: investment properties including dividends paid out, rent, capital gains tax).
- Foreign income.
- Any other income (prizes, awards, insurance payments, etc).
What you can deduct
You can deduct expenses that are directly related to earning your income. Those must be recorded and the receipts must be kept (I always recommend to have an e-copy saved in your computer, simply because they fade!). If the expense was for both work and private purposes, you only claim a deduction for the work-related use. If your deduction has already been reimbursed by your employer, you cannot longer claim it.
Other expenses you can deduct
Other expenses you can deduct are:
- work from home expenses
- covid-19 tests expenses
- internet and phone expenses
- work-related assets and tools
You need to keep your records for 5 years from the date your tax return has been lodged.
Can you prepare & lodge your tax return?
Yes, you can. If you are an individual (employee or/and sole trader) you can access it from your MYGOV. You will need to insert all the requested info and lodge. Is it recommended? It depends on what kind of business you run, how you run it and if you have kept your books tidily and neatly. If a professional bookkeeper & BAS agent has kept your books, the preparation and lodgement will be straightforward and you will be able to do it yourself; however, if you have more things involved such as investment properties under your name, dividends paid out, etc, reach out to an accountant. They will save you lots of money in taxes.
Do you have any questions or comments? Comment below 🙂
North Brisbane Bookkeeping