Individual Tax Returns For Personal Income

Income Statements

Do you work for a larger employer? Are you wondering how to complete your individual tax returns? If your need a tax accountant in Parramatta, Campbelltown or Narellan, read on.

This year the system has changed. You will no longer receive a Payment Summary (Group Certificate) but an ‘income statement’. You obtain your income tax statement by logging into your myGov account or we can access it on your behalf. You cannot use your income statement until your employer has marked it as ‘tax ready’. They have until the 31st July to do so.

Do You Have a Second Income Source?

This is an area that the ATO is taking an increased interest in. If you are receiving income from a side hustle such as Uber, Ubereats, Air tasker, Fiverr, Gumtree, Sheba you need to report this income. You are entitled to claim legitimate deductions incurred in earning the income such as motor vehicle deductions.

We can help you with your personal income tax return to make sure you get all you are entitled to. Please contact our Parramatta Accountants, or if you are in the Campbelltown or Narellan area, contact our Campbelltown Accountants. We are ready to act as your local tax agents.

Australian Tax Deductions for Individuals

To be able to claim a deduction remember the magic rules:

You must have spent the money yourself.
It must be directly related to you earning an income.
It must not have been reimbursed by your employer.
You must have the evidence that you spent the money.

For the first time, this year all line entry deduction data for labels D1 to D15 will form part of the tax return.

Some Tax Deductions you are entitled to claim:

Union fees
Mobile phone
Interest costs
Professional membership fees
Tools
Stationery
Seminars
Superannuation
Donations
Tax Agent fees
Income protection insurance

Clothing/Uniform Deductions

The ATO will be reviewing clothing and uniform deductions. You can claim if you are required to wear a uniform for work. You can claim if the uniform has your employers logo on it or it is distinctive to the place that you work for. A test would be if a member of the public walking past you in the street would be able to tell where you work. For example a McDonalds uniform.

You can also claim if the clothing is specific to your occupation. This would be clothing you would not normally wear outside of work and other people can easily identify what you do for a living. For example, checked chefs pants.

You can claim clothing that it intended to protect you from illness or injury. This would include:

Fire resistant clothing or sun protective clothing (For instance shirts with a UV rating to protect you from the sun when working outside).
Safety coloured vests
Non slip nurses shoes
Rubber boots
Steel capped boots
Gloves
Heavy duty shirts and pants (these need to be heavy duty. Normal jeans and pants are not considered protective).
Overalls or aprons to protect your ordinary clothing.

You cannot claim clothing that you wear for work but are not specific to your occupation. For example black pants, black shirts or business suits.

Home Office Expenses

You can claim a deduction when you work from home.

If you do not have a specific area or room set aside for that purpose you may be able to claim part of your work related phone and internet costs as a tax deduction.

If you have an area or room set aside for that purpose you can claim running costs, such as the work related proportion of electricity and gas.

You need to keep a diary of the hours you work for four weeks.

If you need help with lodging your individual tax returns in Parramatta or Campbelltown, contact Davis Accounting. Just Contact Us here or call us on 0414 731 757.

Motor Vehicle Deductions

You can claim travel for up to 5,000 kilometres for work purposes without a log book. The ATO believes that people are automatically claiming the full 5,000 kilometres when they do not actually do that amount of work related travel. The ATO can ask to be shown how the kilometres were calculated. If you use your car for work related travel keep a diary or record of your trips.

Superannuation Deductions

Deductions for super after tax are no longer limited to the self employed or for the tax returns of sole traders. The rules changed from the 1st July 2017 and a deduction for superannuation is available for those aged under 75. If you are over 65 years of age you need to satisfy the work test.

The concessional contributions cap/limit you can contribute is $25,000.

To claim the deduction your super fund must receive the contribution by the 30th June.

Promises, Promises: How Do I Choose a Tax Agent Near Me?

Like most things in life, you tend to get what you pay for and tax is no different. You should be careful about who you ask to prepare your return. This ensures that your tax affairs are reported correctly and that you are able to prove your claims if the ATO ask any questions.

Every tax agent is legally obliged to take reasonable care. This means checking your tax history, ensuring you have documentation such as receipts, and asking questions about your income, expenses and assets. They should provide a tailored service and only include information that you have provided to them.

Things you should watch out for include tax agents who:

offer a very low fixed fee.
promise large refunds.
charge a percentage of your refund as a fee.
spend very little time with you or on your tax return.
don’t ask for receipts.
don’t ask questions or enter information that you can’t substantiate.
ask you to sign blank or incomplete returns, or blank voluntary disclosure forms.

Make sure that you check your individual tax return before signing. All of your assessable income should have been reported and your deductions correctly recorded.

Davis Accounting can help you get the most out of your individual tax when completing your 18-19 personal tax returns. We are tax accountants based in Campbelltown and Parramatta. Call us today on 0414 731 757 or Email info@davisaccounting.com.au.