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Easy steps for a smoother tax filing process
As per industry estimates, last year, the average tax refund amount from ATO (Australian Taxation Office) stood at $2,365 (Source Accountants Daily). Filing taxes on time allows you to receive a timely tax refund which could help you strengthen your loan application with a larger ‘Genuine Saving’ amount if you are a prospective borrower. If you are an existing borrower, you could consider putting back these funds into your mortgage and quicken homeownership. Here’s a look at some helpful information that could make your tax filing process smoother.
- June 30, 2021: This is when the financial year ends. Your Tax return is calculated for a financial year, i.e., July 1 to June 30 of the following year.
- July 7, 2021: This is when the ATO starts processing tax returns.
- July 14, 2021: The date when most salaried individuals receive PAYG (Summary of tax payments) from their employers
- July 16, 2021: Date by when ATO expects to start paying refunds for filed tax returns
- Oct 31, 2021: Deadline to file your taxes
Documents and Information to keep handy
- TFN: Your Tax file number
- PAYG: Payment summary provided by your employer
- Other income: Income from other sources like rent, interest, stock dividends, royalties etc.
- Bank Account Details: Your Bank Name, Account Number and BSB in case the ATO needs to process a refund
- Medicare Card: Card number and its expiry date
Claim Tax Deductions
You could claim deductions on several expenses. Do your research and be prepared with expense receipts. Here’s a list of some common expenses:
- Work from home expenses- tools, equipment, power, and other home office costs
- Medical expenses over $2120
- Super contributions if you’re self-employed
- Investment income deductions
- Tax Accountant fees
Also, look at minimising paid tax. One approach you could consider is prepaying your mortgage interest. Make note that is strategy involves fixing your interest rate for a year.
- Prep well by
- Researching all tax claims and benefits, you are eligible for
- Becoming aware of ways to minimise tax to be paid
- Collecting all necessary documents and expense receipts
- File your taxes on time and benefit from a timely refund if applicable
- Consider expediting the process using a professional, especially if the cost is far higher than the tax amount you owe, as you can claim accountant expenses!
Happy tax return filing!
The information is a compilation from various sources for your benefit and should not be relied upon in lieu of appropriate professional advice.