Getting Ready to Visit Your Accountant: Tax Return Preparation for FY24
Written by Julie Jung & Dylan Sinclair
As we usher in a new financial year, it's time to start thinking about compiling your FY24 tax information for your accountant. To help you, we have compiled a comprehensive guide with essential steps to prepare yourself for the tax season.
Review Personal Information
Ensure that your personal information, such as your Tax File Number (TFN), address, and contact details, is accurate and up to date. It's essential to ensure that your information matches what the Australian Taxation Office (ATO) has on file to prevent any delays or issues with your tax return. Also, update any changes in your financial situation, such as marital status or dependents, which could affect your tax obligations and benefits.
Pre-fill Information
Once your employer and financial institution complete their end-of-year reporting, your Payment Summaries will become available to your accountant along with other information that the ATO knows about, such as some government pensions, bank interest, dividends, deductible contributions, and your private health insurance details. You can access your pre-filled information through myGov, which can streamline the process and ensure accuracy.
Organise Income Records
Gather all records of your income throughout the financial year. This includes salary and wages, bank interest, dividends, rental income, and any other sources of income. Don’t forget to include government payments, pensions, and allowances. Accurate income records are crucial for ensuring you report all taxable income.
Maximise Deductions
Take the time to identify deductions that you may be eligible for. This can include deductions for work-related expenses, charitable donations, and more. Reviewing your financial records and consulting with a tax professional can help ensure you don't miss out on any potential savings. Be sure to keep receipts and documentation for all claimed deductions.
Rental Property
If you use an agent to lease your property, they will be able to provide you with a summary of the income and some expenses in the financial year. You will need to gather expense information outside of this such as land tax, rates, body corporate fees, interest on the loans against the property, and any other expenses directly related to the property. Your accountant will be able to help distinguish the tax-deductible nature of these expenses. Remember to include depreciation schedules for any property improvements.
Investment Income and Expenses
For those with investment portfolios, it’s important to report all income from investments such as shares, managed funds, and cryptocurrency. You should also gather records of any expenses related to managing your investments. If you use an investment platform, they should provide you with an Annual Tax Statement detailing your income and fees. Additionally, keep track of any capital gains or losses from the sale of investments.
Superannuation Contributions
Review your superannuation contributions to ensure they are correctly recorded. This includes employer contributions, personal deductible contributions, and spouse contributions.
Financial Planning Specific Expenses and Income
For financial planning clients, some deductions you may be able to claim include income protection insurance that is funded personally, the income and admin fees relating to personal investments, deductible personal super contributions, and ongoing financial advice fees if they relate to income-generating investments. Ensure you have documentation for all these expenses.
Logbook and Travel Expenses
If you use your vehicle for work purposes, ensure your logbook is up to date to claim motor vehicle expenses. Keep records of business travel, including accommodation and meal expenses. Accurate logbooks and receipts are essential for substantiating these deductions.
Digital and Home Office Expenses
With more people working from home, don’t forget to claim deductions for home office expenses. This includes internet, phone usage, and a portion of utilities. The ATO provides guidelines on how to calculate these expenses, whether you use a fixed rate or actual cost method.
Keep Up with Tax Changes
Stay informed about any changes in tax laws and regulations that might affect your return. The ATO regularly updates tax policies, and being aware of these changes can help you maximise your tax benefits and remain compliant.
Remember, tax season doesn't have to be stressful. With proper preparation and organisation, you can approach your tax return with confidence, knowing that you have taken the necessary steps to maximise your tax benefits and ensure compliance.
As always, our team at Salt Financial Group is here to support you throughout the tax season. Feel free to reach out to us if you have any questions or need assistance with your financial planning or tax-related matters.