For anyone who has lodged a tax return before, whether DIY or through an agent, you know that the best way to maximise your tax refund is to claim as many deductions as possible. And in order to claim a deduction, you need 2 things - Substantiation and Nexus to the income earning activity (unless there is an exemption under a tax ruling, for example, donations or tax return fees).
Here is a fun and informative infographic I made for my blog. For the PDF version (with links) please click here. I will be creating more infographics like this for deductions relating to specific occupations. If you want to suggest an occupation, please send me an email.
The ATO has recently adopted a very aggressive strategy to collect more tax revenue. Earlier this year, they sent out hundreds of thousands of letters to taxpayers, warning them that their deductions may have been overstated, and advising to review their claims in order to avoid paying back tax and being penalised in the event of an audit. Many taxpayers saw this letter as a precursor to an audit, despite the letter stating that if the taxpayer believes deductions were claimed correctly, they need not take any further action.