It’s not easy to remember what all we bought for work purposes throughout the year, which means during tax time we have to scramble around trying to find our receipts or miss out on important deductions or get creative by adding deductions with no receipts hoping ATO is too busy and won’t call you for audit.
ATO will want you to substantiate your tax deductions, so it’s important that you keep your records for five years from the date you lodge your tax return.
Some common documents or records that you are required to keep for Individual Tax Return:
- Tax invoices/Receipts for work related expenses, subscriptions etc.
- Logbooks for work related motor vehicle usage, Home Office, Phone etc.
- Medicare Levy Exemption certificates (if eligible)
- Private Health Insurance statements
- Rental statements
- Dividend statements etc…
How to keep the Tax Man Happy!
Download any related free app through Google Play Store or App Store. A common app is Deduction Grabber
Take a photo of your receipt and record the expense as soon as you incur the cost and allocate same to the correct expense category.
Motor Vehicle usage can be recorded on ATO compliant logbook
When you make a purchase, take a photo of your receipts, and save in a Tax folder for the current financial year. For instance, TAX 2021 FY
Above ideas will help you maximise your tax refund or minimise your tax liability.