IT IS JULY! We have officially made it half way through 2014!

Do you know what that means – not only are we 6 months closer to Christmas BUT it is also the end of the financial year – which means it is tax time again!

For me, the mere mention of anything tax related makes my eyes glaze over, and my thoughts immediately turn to what I am going to be eating next.

I believe I am not alone in thinking that tax time and tax related words like “fringe benefits” are not only boring, but can be quite intimidating when you do not know exactly what you’re dealing with.

As I have found out, the end of financial year and lodging your tax return is a little bit more complicated than booking an appointment to see an accountant at your closest H&R Block. So here are some simple tips that may help you in the lead up to tax time and ensure you are ready not only this financial year, but next year and the year after.

PAYG Summary

• As we all know, you will receive a PAYG (pay as you go) Summary from your employer. This piece of paper basically outlines the total payments you received (gross income), total amounts withheld (total tax withheld) and any additional fringe benefits/reportable super contributions for a particular financial year.
• If you have worked in a number of different positions throughout a financial year, make sure your details are up to date with those employers so they can arrange to send/e-mail your PAYG Summary. The earlier you receive your summary, the earlier you can lodge your tax.
• By law, an employer is required to send out your PAYG Summary within 14 days after the end of the financial year. If you have not received your summary by then, be sure to chase this up with your current/previous employers.

Receipts

• Make sure you keep any receipts you think may come in handy when claiming any deductions on your tax return.
• As a general rule, you are required to keep any evidence for at least 5 years from the date you’ve lodged your tax return.

Essentials
When you are ready and booked in to see your accountant – make sure you also bring these things with you:

• Identification
• Your tax file number
• Bank details (BSB and account number)
• Medicare Card or Private Health Card – if you are claiming deductions for private health – make sure you also bring your summary (which should be posted to you)
• Details of your income and expenses (PAYG Summaries, bank statements that show interest, Centrelink summaries etc)
• Evidence/receipts of work related expenses

IMPORTANT: Your tax return must be lodged by 31st of October each year. Just remember that tax returns cover the financial year, not the calendar year (1 July and ends on 30 June the following year)!
Hopefully these tips make tax time a little less scary and pain free. If you need any more information or tips -check out the Australian Taxation Office website – https://www.ato.gov.au

Written by Natassja Ford