10 Essential Steps To Take Before Visiting Your Tax Agent This Year

 Preparing and lodging your tax return this year can be much easier if you prepare or collect all the relevant documents and submit them to your registered tax agent.


To facilitate your document preparation, follow the following steps:





Document or Preparation

1: Individual Details

Make sure precision of your Tax File Number (TFN) and bank account details

2: PAYG Summary

Request it from your employer

3: Interest Income

Ask the bank statement to be issued

4: Foreign Income

List Down All the Foreign Income Sources with precise supporting documents

5:Donations and Gifts

Only donation to recognized and qualified organizations are deductible

6: Child Payment and Spouse Income

Ask your partner or spouse to inform you on his/her payment details!!!

7: Investment Income

On some investments income you have received, the relevant tax is paid that reduces your tax payable

8: Rental Income

Not only inform your tax agent on income, but also submit all expenses to be considered

9: Capital Gains and Government Payments

Sales of asset at a higher than cost price creates gains on which certain tax is payable

10: Work Related Expenses

Be careful as some of these deductible expenses create additional tax in other ways




Step 1: Individual Details


Make sure that your Tax File Number (TFN) and bank account number and BSB are correctly provided.




Step 2: PAYG Summary


Your Pay As You Go (PAYG) report including your PAYG withholding tax, employment termination payment*, superannuation income stream or lump sum amounts, and any foreign-sourced employment salaries or wages must be requested from your employer.




*Includes termination payments from death benefits, foreign source which is exempted in that country, and late termination payments received after a period of one year from the termination date.




In case, this report is not available due to any reason like when it is lost or destroyed, you can still prepare this report through your own calculations provided that the records of your estimated amounts are maintained.




Step 3: Interest Income


If you have deposited some amounts in bank on which you have received interest, ask your bank to print your statement for the whole year.




Step 4: Foreign Income


List all the income you have received from non-Australian source like foreign superannuation, foreign employment salaries and wages, foreign interest and dividends, or any other relevant lump sum amount from foreign entities.




Step 5: Donations and Gifts


For all donations and gifts costing more than $2, submit the receipt to your registered tax agent since special rules restrict and define the deductible donations and gifts.




Step 6: Child Payment and Spouse Income


Details of the amounts paid for your child, either is adopted or your natural child, is necessary to be provided.


In addition, for the taxpayers who are married or they are in a de facto relationship with their partner, all information about the wife/ partner income received and the payments made by him/her is necessary to be disclosed to your tax agent.






Step 7: Investment Income


Returns of your investment from shares, trusts, bonds, and so forth originated from Australian and foreign sources are to be listed to be included in your tax return.




Step 8: Rental Income


Income that taxpayers generated from renting of a rental property is not included in Step 7. Since, the expenses on the rental property are classified into two main categories of the capital expenditure, which is not deductible, and revenue expenditure, which is deductible, make sure to keep and present all your costs on this type of property.




Step 9: Capital Gains and Government Payments


Other receivable amounts include


  • The payments paid by government bodies and

  • The gains from sales of assets (Note below)




Note: When the net amount that you received from sales of an asset exceeds the purchased price including the subsequent incurred capital expenses, it is called the sales transaction has given rise to a capital gain event. Likewise, selling the asset below all the acquisition costs generates capital loss.


Since capital gains are quarantined income, meaning that this type of income cannot be used to offset other incomes except other capital gains and the concessions governing Capital gains Tax (CGT) are complex, make sure you are advised by your tax agent on the incidents and figures of this gain.




Step 10: Work Related Expenses


ATO allows some of the expenses that you paid in the course of your business and work to be deducted from your income.


The example of such expenses include uniforms, utilities, travels, motor vehicle running costs, amounts paid on work related education courses which leads to more earning in the future, tools and equipment used to generate income, income protection insurance and some other insurance.


The Australian tax rules and legislation exclude some of work related costs such as the routine travel cost from your residential place to work and coming back, while the expenses paid by employer which benefited you attracts fringe benefits tax (FBT) to be paid by your employer.


Although the fringe benefits you received are not assessable, the gross up amount will be included in your PAYG summary, through which other types of tax like HELP repayment rate and Medicare levy surcharge.




Substantiation, meaning having required documents, applies to enable these costs to be claimed.


Accordingly, again maintain records, receipts, documents, statements, invoices, and any other document which supports these expenses and make sure to deliver them to your tax agent if required.




Good News:


If you have bought private insurance coverage for you and/or your family members, note that you are possibly entitled to benefit from some refunds and rebates available.