The end of financial year is just around the corner so it’s time to start getting your receipts in order.
Yahoo Finance has done the research for you so you have a comprehensive guide to everything you need to know to complete your tax return this year.
If you got JobSeeker or JobKeeper
Many Aussies turned to JobKeeper and JobSeeker last year when the pandemic took hold and left many Aussies facing unemployment.
At the height of the pandemic, 3.8 million employees received the JobKeeper wage subsidy, while COVID forced nearly 2 million Australians onto JobSeeker welfare support or some other form of payment, many for the first time.
If you received JobKeeper, JobSeeker or the Coronavirus supplement on top of JobKeeper, then you need to declare this in your tax return.
If you want to avoid fines
The official end of the 2021 financial year falls on Wednesday 30 June 2021. That means that you can begin lodging your tax return from Thursday 1 July 2021.
However, that doesn’t mean you should head to myGov first thing next Thursday morning.
But, missing key dates could leave you $1,110 out of pocket so it’s important not to miss the ATO deadlines.
If you want to do your taxes yourself
Many Aussies choose to hire a tax agent to help them file their tax returns and there are pros and cons to doing it both ways.
Just because you did your taxes yourself last year doesn’t mean your financial situation is the same.
Hiring a professional to sort out your taxes can give you the peace of mind knowing that it’s in good hands – but it does come at a cost.
If you want to maximise your return
The average Aussie will get back around $2,600 from the ATO, but there are a few things you can do to help maximise your tax return.
If you need new work tools or a work bag
From tools and work clothes to handbags and your next petrol refill, here is a list of some of the things the tax man will reimburse you this financial year.
Just because you work for someone else does not mean you can't claim back certain expenses as part of doing your job.
If you own cryptocurrency
ATO data shows a dramatic increase in crypto trading since the beginning of 2020.
The ATO has said it is concerned that many taxpayers believe their cryptocurrency gains are tax free or only taxable when cashed back into Aussie dollars.
Last year, the ATO directly contacted around 100,000 taxpayers who had traded in cryptocurrency and prompted 140,000 taxpayers at lodgement.
If you get paid in cash
If you earn income through cold, hard cash, be warned: the Australian Taxation Office is keeping a close eye on you, a major accounting association has warned.
Gig economy workers and taxpayers who make money through the ‘cash economy’ must be careful to declare all their income this tax time, said CPA Australia senior manager of tax policy Elinor Kasapidis.
If you work from home
The ATO recently put out a warning to Aussies not to simply “copy and paste” past tax returns as many of the items you once could have claimed can no longer be deducted if you’ve been working from home.
If you’ve bought face masks and sanitiser
While many workers are required to wear masks and use hand sanitiser for their work, not everyone can claim the items on tax.
The ATO revealed anyone working in a job requiring close proximity with customers or clients during COVID-19 can claim a deduction for items like gloves, face masks, sanitizer and antibacterial spray.