Tax time can be stressful, but it doesn’t have to be!
Each year, the ATO focuses on certain areas where mistakes are commonly made. By understanding these areas, you can avoid any unnecessary hassle and ensure you’re paying the right amount of tax.
The ATO emphasizes the importance of good record-keeping throughout the year. This will make the process much smoother come tax time and save you from potential headaches down the road.
MyDeductions is a free record-keeping tool in the ATO app that makes it easier to keep all your records in one place.
The ATO believes that work-related expenses claims are the biggest element in their $8.7 billion “tax gap”, the shortfall between the tax individuals are expected to pay and the tax they are actually paying.
Some focus areas include:
Before making any claims, understand what can and can’t be claimed and gather the necessary proofs (i.e. receipts, invoices, and bank statements) for everything you claim as a deduction. This will make the process much smoother come tax time and save you from potential headaches down the road.
Whether you’re a seasoned investor or a weekend warrior renting out your holiday home, keep an eye out for:
The golden rule is: if you can’t substantiate it, you can’t claim it. Be sure to keep invoices, receipts and bank statements for all property expenditures, as well as proof that your property was available for rent, such as rental listings.
While the sharing economy offers a variety of ways to make money, the ATO wants to ensure everyone’s playing by the rules. If you use platforms like Uber, Airtasker, Airbnb, or Stayz, be aware that the ATO has new procedures to identify people who might not be reporting their income correctly.
The cryptocurrency market is booming, and the ATO wants to make sure that everyone is paying their fair share. Remember, investing in cryptocurrencies can give rise to capital gains tax (CGT) on profits. Traders can be taxed on their profits as business income.
The ATO is collecting bulk records from Australian cryptocurrency designated service providers (DSPs) as part of a data matching program. Data provided to the ATO includes cryptocurrency purchase and sale information. The data will identify taxpayers who fail to disclose their income details correctly.
Thinking of selling shares? You might be liable for Capital Gains Tax (CGT) on any profits you make. CGT applies when you dispose of shares, including selling them, giving them away, or even if you stop being an Australian resident. It essentially taxes the increase in value of your shares since you acquired them.
How you trade shares can impact how you’re taxed, here’s the difference:
Whether you’re an investor or trader, keep good records of all your share transactions. The ATO requires details like the original purchase cost, sale proceeds, acquisition and sale dates, and any associated fees (brokerage etc.) for accurate tax reporting.
By keeping good records, understanding what deductions you’re entitled to claim, and being honest about your income, you can avoid a visit from the ATO and make tax time a breeze.
If you’re unsure about anything, consult a registered tax agent for professional advice.
Every year, as the financial year draws to a close, a familiar scene unfolds across accounting offices. Desks are piled high, brows are furrowed, and the air crackles with a frantic energy.
But what exactly is EOFY, and why does it send accountants into overdrive?
Australian small businesses are ditching the busywork and turning to cutting-edge tech like artificial intelligence (AI) and automation. A recent NAB SME Business Insights report reveals nearly a quarter (23%) have already invested, with another 20% planning to join the wave.
So, what’s driving this surge?
The rise of generative AI, like ChatGPT, Gemini, and Copilot, has businesses buzzing with possibilities. We now live in a world where AI can whip up marketing content that reads like Shakespeare, translate complex legal jargon in seconds, and even write lines of code to streamline your workflow. However, before diving headfirst into this exciting new frontier, let’s talk ethics.
