How to prepare for tax time

The financial year ends on 30 June, so if you’re the type of person who likes to get things done and out of the way at the earliest opportunity, now is a good time to start getting your paperwork together for your tax return. 

Of course, if your only source of income is the Age Pension, you probably won’t need to lodge a return. This online tool can help you find out for sure. 

If you are yet to fully retire, or you have any income from work or investments, you will need to let the Australian Tax Office (ATO) know what you’ve been up to during the 2023-24 financial year.  

Some people find tax time daunting, but that need not be the case if you do things slowly and methodically.  

Everybody’s circumstances are different. If you are comfortable working online, you may be able to file a simple return on your own. If you plan to do that, this official ATO site is a good place to start. 

You will need to have a MyGov account that’s linked to the ATO, and there are instructions for setting all that up here. 

You may, however, need the advice and assistance of an accountant or tax agent. Somebody with a full understanding of tax law can help you navigate your way through the complexities.  

With that in mind, here are some general tips for preparing and submitting your return after the financial year finishes. 

If you want to claim work-related or business expenses, or charitable donations, you’ll need to ensure that they are legitimate and that you have the appropriate receipts to back them up.

The ATO has a tool called myDeductions that allows you to keep track of your work-related expenses throughout the year. 

The normal deadline for lodging your tax return is 31 October, so make sure you give yourself plenty of time to get everything in order. 

If you are using a tax agent, they may be able to arrange to lodge your return later than this date.

Scammers often target taxpayers around tax time, so it is important to be vigilant. 

The ATO will never ask you to provide your personal or financial details via email or text message. If you receive a message like this, it is almost certainly a scam. 

The Federal Government’s Scamwatch website has up-to-date information about scammers and their activities, and advice for those who believe they have been scammed. 

Another government website, Be Connected, offers free online learning for those who want to build their online skills to feel confident and safe online.

After you have lodged your tax return, make sure you keep all your records for at least five years. 

This includes receipts, payment summaries, and any other relevant documents. 

This is not only good record-keeping practice, but it will also ensure that you have everything you need in case the ATO decides to audit you.