How To Lodge Tax Returns In Australia 2021-22: Maximise Your Tax Returns

Every year the tax time approaches in Australia and this year couldn’t have been an exception either. Despite the brunt of the Covid-19 pandemic you need to lodge your tax returns in Australia effectively. The JobKeeper and JobSeeker payments and working from home will supposedly affect the manner of your tax-preparation and lodgement. May be your employment situation has altered or you have received financial aid from the government. If not, then, maybe you were compelled to work from home due to Covid-19. Nevertheless, you’re thinking that how to lodge a tax return and reduce taxes this year as well.

Who Must Lodge A Tax Return In Australia?

Before you contemplate upon how to reduce taxable income in Australia, you must lodge tax return in Australia. You can lodge a tax return in Australia if you’ve earned an income over $18,201 between 1st July 2021 and 30th June 2022. You still need to lodge an Australian tax return if you haven’t earned above this threshold as an imperative criterion.

Record And Maintain Your Tax And Financial Records Impeccably

The Australian Taxation Office trusts those taxpayers who maintain their financial and tax records impeccably. You can keep your records either in a digital format or on paper. In case you’ve made digital or paper copies, they should be a clear and genuine copy of the original. The best option, however, is to keep a back-up of all your digital records. Besides, all your documents should be in English except for your expenses that were incurred outside Australia.

Records You Should Maintain

You should organise all your taxing and financial records into the following categories.

• Aged care, attendant care and disability aids expenses.
• Contributions, donations and tax-deductible gifts.
• Asset disposal or acquisition. Prominent examples include a rental property or shares etc. 
• Expenses which pertain to the payments received by you.
• Payments in general which have been received by you.

At times, you might be required to arrange your records across some more categories. Alternatively, you can also keep these records for some of your other family members like for family-tax-benefit etc. 

Read More:- Individual Tax Deductions You Should Know About To Maximize Your Returns

Claim All Possible Tax Deductions For More Savings 

Here are some of the most common tax deduction which you can claim before lodging your tax return in Australia.

• Uniform-deductions: Expenses related to the uniform that apply to people engaged in services sectors. Say, for instance, attendants on the flights etc.

• Travel and car deductions: Certain travel and car expenses including driving between jobs for tradespeople apply.

• Charitable deductions: Charitable deductions include expenses which you can claim on all your gifts and donations before lodging your Australian tax return.

Remember, that these deductions particularly refer to some necessary expenses incurred as an important part of your employment career. Say, for instance, deductions which flight attendants can claim on their uniform is not applicable for teachers. It results in erroneous claiming of deductions amongst all the eligible taxpayers in Australia.

How To Reduce Or Minimize Your Capital Gains Tax?

A reasonable amount of capital gains tax is incurred on your investment property in Australia.  Again, there are ways on how to minimize capital gains tax when selling your investment property.

Get your property re-evaluated before leasing it

Reassess the actual valuation of your property by appointing a licensed valuer. New price estimation will ensure prospective CGT gains for you.

Wait For A Year

People who own property for the past year are entitled to a 50% discount on any gain they’ve made on their property.

These are some of the crucial information to help you sail through tax return lodgement. Make sure you keep them in mind while lodging tax returns.