Tax time.
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Two words that send shivers of uncertainty down the spines of many.
When you add COVID-related challenges to the mix - such as working from home, JobKeeper and early super access - this year could seem like a real minefield.
But whether you're doing it yourself, or with help from an accountant or tax-agent, lodging a return doesn't have to be an arduous task.
A few easy steps can maximise your return without much effort, making you feel much better about the process and setting you up to make next year easier as well.
Don't be late
The first thing to keep in mind is the deadline date. If lodging your return yourself, it must be in by October 31, or you risk a fine from the Australian Tax Office.
If you are lodging through an accountant you are entitled to a longer period, but you need to see them and appoint them as your tax agent prior to October 31.
The next step is to begin gathering the information you'll need to make the process run as smoothly as possible.
This includes your tax-file number, income sources, bank account details, health insurance information and if you are married or in a de facto relationship, details of your partner's income as well.
It's essential that you have receipts for any items you're hoping to claim as a deduction, and while you're at it, maybe create a filing system for next year too if you didn't have one already.
If you were one of many Tasmanians who accessed your super early under the COVID-19 early release of super program, you will not need to include the amount released in your tax return.
Working from home
While many Tasmanians have been back in the workplace for most of the past 12 months with our state enjoying less restrictions than some mainland cities, there will likely still be many instances when working from home has been necessary.
To make things a bit easier to calculate, the ATO has extended their simplified 'shortcut' method of calculating working from home expenses, which lets you claim 80 cents per hour for each hour you worked from home.
This rate covers phone and internet costs, gas and electricity costs and the depreciation of office furniture and if you claim it, you cannot make a separate claim for these expenses.
If you did have to make a larger work-related purchase to work from home, such as a new desk or computer which your employer hasn't reimbursed you for, you may be entitled to a larger deduction, under the other two methods of claiming working from home expenses.
But these methods will require some extra work documenting your work-from-home expenses.
JobKeeper payments
If you received JobKeeper payments from your employer over the past financial year, this information will need to be declared as part of your tax return.
The good news is that payments will be included as part of your salary or wages in your regular income statement, meaning if you lodge your return online the information will be there automatically, and your accountant or tax agent will also be able to access it.
Early release of superannuation
If you were one of many Tasmanians who accessed your super early under the COVID-19 early release of super program, you will not need to include the amount released in your tax return.
However, amounts released under other compassionate grounds must be included in your tax return.
Even if you didn't touch your super at all last year, or you haven't for a while, the end of financial year is always a good time to take stock and see how you're tracking.
Several changes to super came into effect from July 1, aimed at helping people save money and making it easier to keep tabs on your retirement savings.
These changes will affect all super funds in Australia, so it's worthwhile every Tasmanian worker checking their superannuation.
If you are unsure about anything or require a little bit of help I would encourage you to visit a local accountant or tax agent for assistance.
The best part is you'll be safe with the knowledge you haven't missed anything important, it could help you save money in the long run, and you can even claim the cost back on next year's return.
- Mark Leis, Chair of Chartered Accountants Australia and New Zealand's Tasmanian Council