Tips

For your TaxTips appointment, ensure you bring the following documents:

• Photo identification: Driver’s licence or NSW photo card (or equivalent)
• Your bank account details
• Any (if you’ve worked for multiple workplaces, please ensure you have all your summaries before the appointment)
• And any receipts

When we complete your tax return and you meet our terms and conditions, we can offer you the option of transferring your tax refund directly into your designated bank account within an hour of your TaxTips appointment. This means you won’t have to endure a two-week wait. Instead, you’ll have instant access to your tax refund.

Certainly, utilising our tax agent portal, we can access the Single Touch Payroll information and expedite the process for you to receive your tax refund on the same day.

In the tax years affected by the Covid-19 pandemic, the ATO allowed individuals to claim a flat rate of 80 cents for every hour of work conducted from home due to the crisis. For the 2024 tax year, work-from-home expenses can only be calculated using either of the following methods:

1. Revised fixed rate method
   

   This method allows 67 cents per hour to be claimed and encompasses home and mobile internet, mobile and home telephone, electricity and gas usage, stationery, and computer consumables. The rate per work hour (67c) includes the total deductible expenses covering all of the foregoing expenses.  Actual hours worked from home must be recorded, replacing the previous four-week representative diary requirement. Accepted records include timesheets, rosters, logs of time spent accessing systems, time-tracking apps, or a diary.
   Cleaning expenses and depreciation on office furniture are not included in the fixed rate and can be claimed independently.
   
   

2. Actual costs method
   

   The actual costs method remains unchanged but has not been widely adopted due to the extensive record-keeping required for each expense.

Another valuable tax tip: claiming the actual costs of the listed items could potentially result in a higher tax refund. At TaxTips, we can professionally prepare your tax return and determine the most advantageous tax method to maximise your refund.

Here’s another tax tip for sole traders or business owners who are not employees: you can calculate and claim the work-related portion of occupancy expenses such as rent or mortgage payments, provided you own the dwelling.

You are required by law to keep your receipts for a period up to 5 years from the date you lodge your tax return. We suggest you buy an A4 envelope and mark it with the year of tax. Place all your receipts in it and store it away in a safe place. In 5 years’ time you can toss it in the bin.

Eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used or installed ready for use.

The instant asset write-off can be used for:

• multiple assets if the cost of each individual asset is less than the relevant threshold
• new and second-hand assets.

If you are a small business, you need to apply the simplified depreciation rules to claim the instant asset write-off. It cannot be used for assets that are excluded from those rules.

The instant asset write-off eligibility criteria and threshold have changed over time. Taxtips can check your business’s eligibility and apply the correct threshold amount depending on when the asset was purchased, first used or installed ready for use.

If you anticipate having a higher income in 2023-24 compared to 2022-23, it could be advantageous to prepay certain expenses, such as insurance, subscriptions, or memberships, in the current financial year.

You have the option to deduct up to 12 months of the following year’s expenses in the current tax year. Our proficient accountants can guide you in assessing the potential tax benefits when preparing your tax return.

Consider delaying the recognition of some income to potentially lower your taxable income for the current financial year.

For instance, if you choose to postpone the issuance of an invoice until July 1, 2024, the invoiced amount will contribute to your taxable income for the upcoming financial year instead of the current one.

You have the opportunity to claim a tax deduction for debts that prove unrecoverable, regardless of the invoicing year, provided you can demonstrate the debt was initially recognised as income and has been written off by June 30. It is crucial to document your decision to write off the debt, as this documentation serves as evidence that the debt was officially removed before the end of the financial year (EOFY).

For businesses with inventory, it’s advisable to assess the stock valuation and eliminate any items that are damaged or obsolete. Conduct a comprehensive stocktake, noting that stock can be valued at either its cost price or net realisable value (the anticipated selling price), choosing the lower of the two.