Stay calm for a nice tax refund
Article From: The Sunday Telegraph
Susan Bennett. Pic by: Dean Marzolla
Tax time can be stressful for both employees and business owners, but a little bit of discipline during the financial year can reduce the panic. As the financial year is still newish, read this advice and put it to work now.
CEO of accountantsRus Adrian Raftery said knowing what can be claimed as a work-related expense was important for workers as there could often be thousands of dollars of legitimate tax deductions they were entitled to.
"It actually surprises me how much people dread going to their accountant at tax time,'' he said. ``They treat the experience a bit like going to their dentist. It really isn't that stressful and at the end of it you generally get a nice tax refund, which has to be better than having a tooth pulled."
Mr Raftery believed much of the stress was created when people needed to locate all of their paperwork for the year and said organisation was important.
"Keep all your receipts throughout the year - the more receipts you have, there is the likelihood that your refund will be higher than normal," he said. "And at the same time you can sleep easier if the taxman elects to audit you.
"I have found that the more disciplined you are with record-keeping then the quicker you generally lodge your tax return and the quicker that you get your refund back."
DDB Sydney business executive Susan Bennett said many of her friends now used a specialist to assist them with their personal tax returns to ease the stress.
"It is really hard to keep up to date with ongoing changes to the tax laws and what deductions or rebates are currently available," she said.
"I am half-prepared; I have been organised with most my receipts but unfortunately there are still a few stray ones in a pile at home that need to be sorted."
Ms Bennett, 22, said working at an advertising agency allowed her to claim back items such as self-education courses and membership to professional associations, as well as deductions on some types of travel.
Mr Raftery said the ATO would be increasing their audit activity this year, but it shouldn't deter people from claiming expenses they were legitimately entitled to.
"If you use your car for work purposes then complete a 12-week logbook and keep all receipts relating to the running of your car," he said. "For those that do work at home then you can also claim a proportion of your home computer, Internet, home telephone and electricity costs."
He added that other work-related deductions for employees to claim could include professional memberships, subscriptions, mobile phone-related expenses, tolls, taxis and laundering of work uniforms.
CEO of accountantsRus Adrian Raftery said knowing what can be claimed as a work-related expense was important for workers as there could often be thousands of dollars of legitimate tax deductions they were entitled to.
"It actually surprises me how much people dread going to their accountant at tax time,'' he said. ``They treat the experience a bit like going to their dentist. It really isn't that stressful and at the end of it you generally get a nice tax refund, which has to be better than having a tooth pulled."
Mr Raftery believed much of the stress was created when people needed to locate all of their paperwork for the year and said organisation was important.
"Keep all your receipts throughout the year - the more receipts you have, there is the likelihood that your refund will be higher than normal," he said. "And at the same time you can sleep easier if the taxman elects to audit you.
"I have found that the more disciplined you are with record-keeping then the quicker you generally lodge your tax return and the quicker that you get your refund back."
DDB Sydney business executive Susan Bennett said many of her friends now used a specialist to assist them with their personal tax returns to ease the stress.
"It is really hard to keep up to date with ongoing changes to the tax laws and what deductions or rebates are currently available," she said.
"I am half-prepared; I have been organised with most my receipts but unfortunately there are still a few stray ones in a pile at home that need to be sorted."
Ms Bennett, 22, said working at an advertising agency allowed her to claim back items such as self-education courses and membership to professional associations, as well as deductions on some types of travel.
Mr Raftery said the ATO would be increasing their audit activity this year, but it shouldn't deter people from claiming expenses they were legitimately entitled to.
"If you use your car for work purposes then complete a 12-week logbook and keep all receipts relating to the running of your car," he said. "For those that do work at home then you can also claim a proportion of your home computer, Internet, home telephone and electricity costs."
He added that other work-related deductions for employees to claim could include professional memberships, subscriptions, mobile phone-related expenses, tolls, taxis and laundering of work uniforms.
