Everything you need to prepare for a smooth, stress-free tax return
Tax time doesn't have to be stressful.
Every year, thousands of Australians rush to lodge their tax return, only to discover they've forgotten important documents or missed deductions they were entitled to claim.
A little preparation before your appointment can make the process quicker, easier and often result in a more accurate tax return.
Whether you're an employee, investor, retiree or sole trader, this guide will help you understand what information you should gather before lodging your tax return.
Before You Lodge…
One of the biggest mistakes taxpayers make is lodging their return too early.
While it can be tempting to submit your return on 1 July, many employers, banks, government agencies and health insurers may not have finished reporting your information to the Australian Taxation Office (ATO).
Waiting until your information has been finalised can help avoid delays or the need to amend your return later.
If you're unsure whether you're ready to lodge, speak with your accountant before submitting your return.
Your Tax Return Checklist
1. Income Statements
Most employers now report income directly to the ATO through Single Touch Payroll.
Before lodging your return, make sure your Income Statement has been marked "Tax Ready".
You should also include income from:
- Bonuses
- Commissions
- Employment termination payments
- Government payments
- Foreign income
- Director's fees
2. Bank Interest
Even small amounts of interest earned on savings accounts need to be declared.
This may include:
- Savings accounts
- Offset accounts
- Children's accounts held in your name
- Term deposits
Most banks report this information directly to the ATO, but it's still worth checking that everything is correct.
3. Investment Income
If you own investments, remember to bring details relating to:
- Shares
- Managed funds
- Dividends
- Cryptocurrency transactions
- Trust distributions
- Capital gains or losses
These investments may have tax implications even if you haven't sold them.
4. Rental Property Information
If you own an investment property, your accountant will generally need information such as:
- Rental income
- Property management statements
- Council rates
- Insurance
- Repairs and maintenance
- Loan interest
- Depreciation schedules (if applicable)
Having these documents ready before your appointment can save time.
5. Private Health Insurance
Bring your annual Private Health Insurance Statement.
This information is used to calculate any applicable private health insurance rebate or Medicare Levy Surcharge adjustments.
6. Work-Related Expenses
Many Australians can claim legitimate work-related expenses.
Depending on your occupation, these may include:
- Motor vehicle expenses
- Home office expenses
- Uniforms and protective clothing
- Self-education
- Professional memberships
- Tools and equipment
- Mobile phone and internet expenses
- Union fees
Remember, you must have incurred the expense yourself, it must relate to earning your income and you should keep appropriate records.
7. Donations
Donations of $2 or more to registered deductible gift recipients may be tax deductible.
Keep your receipts to support your claim.
8. Working From Home Records
If you worked from home during the financial year, you may be able to claim eligible expenses.
Keep records of:
- Hours worked from home
- Internet expenses
- Phone expenses
- Electricity
- Office equipment
- Office supplies
Different calculation methods may apply depending on your circumstances.
9. Motor Vehicle Records
If you're claiming work-related vehicle expenses, you may need:
- Logbook
- Odometer readings
- Fuel receipts
- Registration
- Insurance
- Repairs and servicing records
Your accountant can advise which method is most appropriate.
10. Other Documents
Depending on your circumstances, you may also need:
- Child support information
- HECS/HELP details
- Income protection insurance premiums (where deductible)
- Tax agent fees from last year
- Foreign income information
- Superannuation contribution details
Keep Your Records Organised
The easiest way to prepare for tax time is to keep records throughout the year.
Consider using:
- Digital receipt apps
- Cloud storage
- Dedicated folders
- Accounting software
- Spreadsheets for work-related expenses
Good record keeping not only makes tax time easier but also provides evidence if the ATO requests additional information.
Common Mistakes to Avoid
Many taxpayers make simple mistakes that can delay their return or lead to amendments later.
Some common examples include:
- Lodging before information is finalised
- Forgetting bank interest
- Claiming personal expenses
- Losing receipts
- Forgetting investment income
- Not keeping work-from-home records
- Missing deductible expenses
Working with a registered tax agent can help reduce these risks.
Frequently Asked Questions
Can I lodge my tax return on 1 July?
You can, but it's often better to wait until your income information has been finalised to avoid amendments.
What if I've lost my receipts?
Some information may still be available through bank statements or digital records, but record-keeping requirements vary depending on the claim.
How long should I keep my tax records?
In many cases, records should generally be kept for at least five years, although longer retention periods may apply in some situations.
Should I prepare my own tax return?
Simple tax affairs may be straightforward, but many taxpayers benefit from professional advice to ensure their return is accurate and they claim all eligible deductions.
Let OTC Tax & Accounting Help
Preparing your tax return doesn't have to be overwhelming.
At OTC Tax & Accounting, we take the time to understand your individual circumstances and ensure your return is accurate, compliant and tailored to your situation.
Whether you're an employee, investor, sole trader or retiree, our experienced team is here to make tax time simple.
Ready to book your appointment?
Contact OTC Tax & Accounting today and let us take the stress out of tax time.