Tax Tips for Individuals

Posted 14 Jul '23

Tax Tips for Individuals

The 2023 financial year has ended! Although your tax return is not due for a few months yet, get ahead now by preparing all the documents required for your 2023 tax return so you can get your tax done quickly.

Income

The Australian Taxation Office (ATO) automatically receives information from your employers about salary and wages that you have been paid for the financial year. You need to declare all income (even if it's a small amount) from other sources on your tax return as well. You'll also need documents such as statements, invoices and reports to show all earnings.

• Wages, salaries, allowances or bonuses from all employers.

• Pensions, annuities or government payments.

• Investment income including interest earned and dividends paid.

• Business income, if you have a business as well as a job.

• Cryptocurrency trading income or losses.

• Foreign income.

• Crowdfunding income.

• Sharing economy income such as Uber or Airbnb.

• Income such as hobbies, prize money, compensation or insurance payments may be tax free, but we can help you determine this.

Work-Related Expenses

Employees are entitled to claim work-related expenses as a tax deduction. To claim a deduction, you must have spent the money out of your own pocket and not have been reimbursed by your employer. The expenses must relate to your earnings as an employee. Make sure you have invoices and receipts as proof of payment for any work-related expenses.

Expenses you may be able to claim

• Vehicle and travel expenses – use a travel diary to record details of trips taken for your employment.

• Clothing, laundry and dry-cleaning expenses – you can claim for occupation specific clothing, uniforms and protective gear.

• Self-education expenses – some education expenses that relate to your current employment are claimable.

• Tools and equipment – if you buy gear to help you in your job, this may be claimable. Small tools of trade, protective items, professional references and laptops are some examples of equipment you may be able to claim.

• Superannuation contributions you have made separate to your employer’s contributions.

• Occupation and industry specific requirements – check the ATO fact sheets for your industry.

• Working from home – new rules apply this year that make claiming expenses for working from home easier. Check the ATO information for details.

Book a time with us now to prepare for your tax return and we’ll help make tax time easy for you!

Superannuation

If you have made personal superannuation contributions separate to your employer’s superannuation guarantee contributions, you may be able to claim this as a tax deduction. You will need to provide a notice of intent to claim form to your super fund and receive acknowledgement from the fund before doing your tax return.

Please feel free to get in touch with your WDF contact or phone 02 6921 5444 to talk with us about how we can help make tax time easier for you and help you make the most of all the applicable tax deductions this year.  To help get you prepared, our checklist will help you compile all the documents you need.

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