Tax Time is HERE - are you ready?

July is "Tax Time" - the time of year when we run around looking for those receipts we stashed somewhere safe, and Googling the words  'is this deductible' over and over. This year, we have compiled the best advice to give you everything you need to get your tax return lodged and returned quickly and with less stress.

What's Different in 2022

COVID-19 Support

There have been a number of subsidies and grant programs available in 2021 and 2022. According to the ATO, the COVID-19 Disaster Payments are not taxable and don't need to be included in your return this year. The Pandemic Leave Disaster Payment are taxable and will need to be included as assessable income.

COVID Tests & PPE

This year, you will be able to claim a deduction for the cost you have incurred when buying RAT tests (from 1 July 2021). However, these can only be claimed for work-related purposes (to determine whether you can attend or remain at work) and cannot be claimed for children before they returned to school. Unfortunately this does not include any travel or parking expenses you have incurred when purchasing your RAT Tests. PPE that you have purchased to remain at work (masks, gloves, hand sanitiser) are also deductible.

Gathering Your Documents

There are 3 main categories of documents that you need to provide to begin your return.

Income

These documents relate to how you made money in the 2021-2022 financial year.

They may include:

• Payment summaries
• Income statements
• Government payment statements

Deductions

Deductions are expenses that you have paid for work-related purposes.

These could include:

• Motor vehicle expenses
• Work uniforms
• Union fees or memberships fees
• Donations
• Home Office expenses

Offsets & Refunds

These are expenses you have incurred where a refund was made to you.

These may include:

• Health insurance
• IAS statements
• Spouse information

You also may have other income such as rental properties, a business, foreign income, capital gains or employee share schemes, which also need to be included.