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).
Are you still printing and scanning documents?
Did you know that in many circumstances, a digital signature is just as valid as a hard copy? In my daily work life, I frequently have to send documents to clients to sign, and this can be a daunting and inconvenient process for individuals who don’t have a printer, scanner or fax machine. Going to the post office is time consuming and costly. The fastest and easiest way to get your document signed (and your returns lodged and processed as soon as possible) is to use a digital signature.
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.
Earlier this month, Woolworths Ltd, the second largest revenue earning company in Australia, announced that it's supermarkets (including Big W, BWS and Harris Farm) will stop using plastic bags by the end of this financial year, replacing them with paper bags, reusable bags and reused cardboard boxes.
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.
Bentley & Associates Pty Ltd is a CPA Public Practice Certificate holder
Liability limited by a scheme approved under Professional Standards Legislation
