The end of the financial year is rapidly approaching, and Chartered Accountants Australia and New Zealand (CA ANZ) says it’s important people are prepared so they can receive the right return.

CA ANZ has released eight ‘top tips’ to help Australians get the most out of their tax return this year.

CA ANZ Senior Tax Advocate, Susan Franks, said the soaring cost of living means many families will be looking forward to receiving a tax refund. But with the expiry of the $1,500 low and middle income tax offset, many may find the expected tax refund is not there. Now is the time to consider what tax deductions are available to you.

“Whether it’s changes to working from home tax deductions, managing your rental property or working on your side business – you need to get prepared for tax time,” Ms Franks said.

“If you’re feeling overwhelmed, these eight top tips are a good place to start.

“And if you’re still unsure how to proceed, talk to your tax agent – they have the expertise to maximise your tax return, while staying within the ATO’s guidelines.”

1.   Gather your receipts

Many of us throw receipts straight in the bin, but if you want to claim a deduction on a work-related expense, you need proof of the purchase.

So, dust off that box of receipts, or go through your emails for any digital copies, because if the ATO asks for proof, you don’t want to be left in the lurch.

2.   Purchase your work expenses before 30 June 2023

If you’re making work purchases, such as subscriptions and membership fees, or sunglasses if you work outside, do so before 30 June so you can enjoy the tax deduction.

But make sure you need the item – don’t just buy something because of the June 30 deadline.

3.   Record when you worked from home

How you calculate your working from home deductions has changed. This year there is a choice between claiming 67 cents per hour you worked from home or actual costs. Claiming 67 cents per hour covers running costs such as phones, internet, ink, heating, electricity etc and allows you to separately claim a tax depreciation for computers and furniture. But if you have the time and the documentation, using the actual cost method may result in a larger tax deduction.

Be careful of how you record your time. An estimate can be used from 1 July 2022 to 28 February 2023 but from 1 March 2023 exact details of when you worked from home are needed. So ensure you have timesheets or a diary to support your claim.

4.   If you’re a gig economy worker, report all your income

Many people take on a second job to get that little bit extra to help pay the bills.  If you work in the gig economy, you need to report all your income. The ATO collects information directly from gig economy operators about who earns income through their platforms so they can check what is reported in tax returns. 

5.   Property investors need to check their interest deductions

Don’t be tempted to include interest that relates to amounts redrawn under the property investment loan for private purposes, as a tax deduction. Nine in 10 investment property claims have been found to be incorrect and the tax gap for rental property expenses is estimated at $1 billion dollars or 14 per cent of the individual’s tax gap. The ATO is now obtaining data from banks about investment property loans and will be looking closely at interest deductions where investment property loans have been redrawn or refinanced.

6.   Donate to a registered charity

If you want to top up the karma bank, donate to a registered charity. But remember, the charity must be registered or the deduction won’t apply. Go Fund Me pages and amounts added to receipts at a checkout don’t qualify – so keep that in mind when making donations.

7.   Calculate any capital gains and losses

If you have a share or property portfolio and you’ve made a capital gain during the year, review your other assets to see if there is a poor performing asset with a capital loss that you could consider selling. It is worth obtaining advice on whether selling the poor performing asset could reduce your capital gain, and potentially balance out your tax bill.

8.   Ask your Chartered Accountant for help

If this all sounds too hard, contact a Chartered Accountant to get some help. The depth and breadth of a Chartered Accountant’s expertise helps businesses, organisations and communities see the big picture and chart the best course of action. And remember, the cost of an accountant is a tax deduction too.