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It’s The EOFY So What Should You Be Looking At For Your Tax Return?

Completing a tax return can be daunting, especially if it’s your first time having to do it. Whether you’re fresh in your first high-paying role or have worked diligently for more than 30 hours in a week, completing your tax return is an important part of your tax obligation.

If you are earning or will earn more than $18,200 this year, a tax return will need to be lodged. You should also lodge a tax return if you have earned less than that amount and your employer took tax out of your pay, as you may receive that tax back.

The first step is working out where all of the income earned has come from. Most of your income is automatically uploaded to the ATO, be it from your wage or via interest from a bank account. Income that you might have received but that has not been sent to the ATO could include tips, income earned while working under an ABN (think gig economy) or distributions from a family trust. These amounts will need to be worked out and included in your tax return.

You may be entitled to certain tax deductions as well for things such as:

  • Uniforms and protective clothing.
  • Certain travel expenses between workplaces (but not from home to work).
  • If an apprentice or trainee, any tools or equipment that you may have had to buy out of pocket.
  • Union fees.
  • Any donations you make.
  • Costs incurred in the course of educating yourself (courses, seminars, training etc.).

It is important to understand that, when claiming something as a tax deduction, getting all of the money back on it isn’t an option. You will instead get the tax rate of your earnings back on the total cost, which can be quite low for those who are first entering the workforce.

If your income is above a certain threshold, you may also have to make HELP or HECS debt repayments which could impact what you get back from your return.

Now may also be the time to check on your superannuation. If you are over 18 years old or work more than 30 hours in a week, your employer must pay money into your super. It might not be the most pressing concern in your thoughts, but acting now with regard to your super could have long-term benefits. Make sure that you are receiving superannuation and that it is placed in the most suitable portfolio for you.

If you are looking for assistance with completing a tax return or would like to know more about what you might be able to claim back on your return, speaking with a professional tax agent like us can aid you more in the long run.

If you’re someone who often finds it difficult to make large lump sum payments for goods or services, you may want to consider looking into “Buy Now Pay Later” services.

Buy now pay later essentially means that, rather than paying in a full lump sum payment for a product or services rendered, there may be an option to pay through instalments of a certain amount over a set period to make the sum of the full amount in total. This method should allow you to pay in full for the product or service without overly straining your finances – you pay back what you can, as agreed upon when you begin the buy now pay later service.

Some popular buy now pay later services include Afterpay, Zip Pay, Brightepay, and some credit card networks such as  Mastercard and Visa, can offer buy now pay later arrangements.

Though it can be a convenient, immediate solution, it may be challenging to juggle the necessary repayments with other financial commitments. It’s not always the most appropriate method for people, and you should bear in mind your situation and ability in paying back the amounts. 

Before you sign up, keep in mind: 

  • It becomes easier to overspend with buy now pay later services, so know your limits on what you can and can’t afford.
  • You will be charged fees and costs to use the service, which can add up to a princely sum in and of itself.
  • Keeping track of your payments can be tricky if you’ve signed up for multiple services.
  • It could affect your loan applications for a car or mortgage as lenders consider buy now pay later spending just as much as your credit score.
  • Late repayments can appear on your credit report, which affects your ability to borrow money in the future.
  • Layby can be a cheaper alternative to buy now pay later, with no account-keeping or late fees to consider

If you are someone who could make use of BNPL services, you may wish to:

  • Ensure that when using the BNPL service, you stick to a set limit on what you spend so that you can comfortably pay it back later. 
  • Aim only to have one BNPL account at a time to manage payments through, rather than confuse yourself with multiple payments across different providers.
  • Always budget for bills, loan payments and BNPL payments, and 
  • Rather than use your credit card for payments to your BNPL account, consider linking to your debit account instead.

If you would like assistance in planning your financial future, help in managing your budget or some friendly advice, see us for a chat about what we can do for you.

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What our Client Say

John Briggs

Jane Noller has been my accountant for the last 15 plus years. I can testify to Jane’s professionalism and expeditious manner in dealing with the day to day issues that surrounds our business accounting.

John Briggs

Registered Building Certifier

David and Alison Parker

I have been consulting J L Noller and Co. (more specifically Jane) for six years and during this time I have found her to be professional, efficient and easy to discuss all accounting and taxation matters with. Her office team are all polite and friendly also.

David and Alison Parker

Business Owner

Carl Gillmore

I have used Jane & the team for the last 6 years for all of my business & personal accounting needs. They have always been professional, easy to talk to & available when we have needed assistance.

Carl Gillmore

Carl Gillmore Landscape

John Briggs

Jane Noller has been my accountant for the last 15 plus years. I can testify to Jane’s professionalism and expeditious manner in dealing with the day to day issues that surrounds our business accounting.

John Briggs

Registered Building Certifier