Tax move Aussies need to make now: 'Best refund'

Mark Chapman is a tax expert and he's revealed what you should be doing now to ensure you get the biggest return possible at tax time.
Mark Chapman is a tax expert and he's revealed what you should be doing now to ensure you get the biggest return possible at tax time. · Belinda Grant-Geary

Workers struggling in the cost-of-living crisis are looking to the Australian Taxation Office for a little cash boost. Millions will be going through the process of lodging their 2024 tax return.

It may seem premature to start planning next year's return. But if you want to get the best possible tax refund next year, you need to start doing the groundwork right now.

Here are H&R Block’s top tips for planning to maximise next year’s return.

Keep track of your expenses

Put in place a system to record all your workplace expenses.

If you spend money on anything as part of your job, get and keep the receipt.

Even if you’re not sure if it’s deductible, if you at least have the paperwork you can get your accountant to advise you when the time comes to do your return.

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If you end the financial year with all your receipts, invoices and other records tidily arranged, you’ll immediately be ahead of the game.

Rather than keeping paper copies of everything, take photographs of receipts, etc and store them on your phone.

There are apps which enable you to store all your records in one electronic place.

The ATO accepts electronic copies so you don’t need to keep paper versions, which often fade anyway.

Some apps allow you to download information you’ve stored during the year straight into your tax return, or email it your accountant. That can save you valuable time and effort.

Keep logbooks and diaries

Do you drive your car for work purposes?

If you use the logbook method, you need to keep a diary for at least 12 continuous weeks to record your work-related journeys.

From that, you can then establish a work-use percentage which you can apply to all your car expenses over the year.

If you don’t already have a logbook (they are good for five years), think about starting one soon.

If you use the other method of calculating car expenses – the standard cents per kilometre rate – make sure you record all your work journeys during the year so you have an accurate kilometre figure to apply the rate against when you come to do your tax return.

If you work from home, you’ll need to keep a diary for the whole year (if you use the 67 cents per hour fixed rate method) to record your working from home hours.

If you don’t have a diary, copies of timesheets or rosters will do.