Getting ready for the end of financial year
24 June 2019
It’s just a matter of time until the end of another financial year. For businesses, that means getting organised for reporting. If the end of financial year doesn’t mean much more to you than an opportunity to hit the shops for the EOFY sales, there’s a few things you should know. When it comes to your tax return, there are some simple preparation points you can do now that will help when it comes time to submit.
Get all your receipts organised
You will have an opportunity to claim some tax deductions in your tax return – this isn’t new. Typically, the more deductions you can claim, the bigger your tax refund is likely to be. To do this properly however, you don’t just need to know what you can claim (see the ATO website for hints¹ ). You also have to have your records and proof in order. That means receipts.
To get your receipts organised, gather them up (printed and digital – check your inbox!). Depending on your ‘filing system’, this could mean anything from emptying a shoebox to hunting through your bags, wallets and laptop cases. Once you’ve got everything in one spot, sort the expenses into categories. You might have one category for travel expenses, one for home office expenses, and one for tools and equipment. Once you have them categorised, start entering your potential deductions in to a spreadsheet. Using one column for the item name/description, one for the date, one for the amount, and one for the expense category is helpful to keep your data precise. This will help make things a lot easier when it comes time to do your own tax return, or hand everything to your tax agent.
Give what you can
If you’ve been thinking about donating to a charity you really believe in - now’s the time to strike. In order to receive a deduction for an eligible charity donation, you’ve got to make the donation before July 1. Do a search of the Australian Business Registry for deductible gift recipients² to find out whether the organisation you’re thinking of donating to is an approved donation recipient for tax purposes. Check out the Australian Charities and Not-for-profits Commission website, where you can search by cause, beneficiaries, countries of operation, and more³ if you know you want to do some good but you’re not sure who to give to. Then cross-check your results with the Registry’s list of deductible gift recipients.
Remember your super
Everyone can claim a tax deduction for after-tax personal super contributions. If you find you have a bit of extra money, and have been thinking about boosting your super, now is the time to strike. Make sure you meet the eligible criteria first, and that you follow the proper procedure for making a claim. For example, you’ll have to file a proper 'Notice of intent to claim a tax deduction' with your super fund. Check the procedure on the ATO website.
Have you done all of the above and still feeling a bit underprepared for tax time? There are many more things you can learn to help you feel confident and organised. For more information go to Moneysmart.
²Visit https://abr.business.gov.au/AdvancedSearch.aspx and make sure to select the deductible gift recipients option before searching.