Tax Planning Tips for Individuals

Your adviser makes preparing your individual return simple by taking the guess work out of what you may or may not be eligible to claim based on your individual circumstances. 

Consider Starting to prepare before 30 June 2022 to optimise your return.

• Ensure you have collated any proof of deductible expenses receipts.

• If you have a rental property begin assembling relevant documentation including deductible expenses such as rates and property management fees.

• ·You may also consider prepaying interest on your rental property or paying other expenses before 30 June to optimise a tax deduction this financial year.

• If you have started a pension from superannuation, it is important that you have drawn the minimum pension before 30 June 2022.

Working from home expense deductions have caused confusion following the pandemic as it has become increasingly common for individuals to work from home a few days or permanently each week.

Individuals should have some record of the hours worked from home such as a roster, timesheet, or diary entry.

The shortcut method to ulitilse the fixed rate of $0.80 per hour that covers expenses such as electricity, depreciation on furniture and equipment, internet and telephone can be used for the 2022 financial year.  Please note you can use the actual cost method depending on the records you have available.

Be prepared as you move forward into the new financial year as there will be a return to the actual cost or fixed rate methods.

Tax is complex and you should always work with your adviser to ensure you are optimising your return and working within your personal circumstances without relying on general advice.