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It seems not so long ago that we were biting the heads off of our Easter bunnies, and all of a sudden, BOOM, the end of the financial year has arrived. Don’t you think it snuck up rather quickly? Or a little too quickly for some of you? If you're feeling the same way, don't fret - you've still got time to get organised and maximise your tax return using our handy EOFY checklists that we've put together for employees and business owners/soletraders in this article. So, read on.
✔️ If you don’t have a myGov account, you can create one online here and link your account to the ATO.
✔️ Tax file number (TFN)
✔️ Contact info, proof of identification, and residential address
✔️ Your bank account details (BSB, account number, your name and bank name)
✔️ A medical expenses and medicare card details
✔️ A last year’s income statement assessment
✔️ A superannuation statement less than 5 years old
✔️ A statement on earnings from other investments (for example, properties, managed funds etc) plus any earnings made from overseas.
✔️If you’ve received an income for being off work, a proof of redundancy, income protection and work cover payments should be submitted to the ATO.
✔️ A recent PAYG payment summary (your employer(s) should send you this)
✔️ A dividends statement less than 2 years old
✔️ A Centrelink payment summary less than 2 years old
✔️ A notice of assessment less than 5 years old
✔️ A full copy of your bookkeeping files from accounting software like MYOB, XERO, QuickBooks. At a minimum, consider:
✔️ Bank statements indicating:
✔️ Reconcile cash books, including any drawings taken from your business before banking.
✔️ Reconcile all of your bank and credit card accounts. Review any ‘unreconciled’ transactions and see if any adjustments need to be made.
✔️ Review BAS (Business activity statement) & IAS (Instalment Activity Statement) submitted against what your records show they should have been. Does an adjustment need to be brought into the June BAS?
✔️ Outstanding debtors and creditors as at 30 June, including a list of unrecoverable debts
✔️ Stocktake as of 30 June (if you have a business that sells physical items!)
✔️ List of all business assets showing 1) dates of purchase, price and description, 2) details of any repairs and maintenance, 3) cost of any additions or improvements, and 4) any finance arrangements including hire purchase. Also, check if temporary full expenses apply here.
✔️ Details of any government-related payments, grants or rebates. For example, COVID-19 payments, such as JobKeeper.
✔️ Copy of statements for all loans owed by the business (and total interest paid for the year), with balances as at 30 June
✔️ Copies of payment summaries and annual salary/ wage reconciliation
✔️ Details of any shares purchased or sold, and dividends received during the year.
✔️ Details of superannuation contributions made for each employee
✔️ Details of expenditure on motor vehicles, including fuel, oil, registration, insurance, repairs and maintenance, plus:
✔️ Travel diary and travel documentation (if you travel for business).
✔️ Details of insurance policies, copies of certificates, and total premiums paid.
✔️ Details of any overseas stock in transit – ordered before 30th June.
✔️ Details of petty cash expenditure.
✔️ Make sure you have updated any employee remuneration in your accounting file.
✔️ Prepare the ATO Taxable Payments Report and submit it to the ATO by 28 August 2021.
✔️ Anything else that may impact your tax liability that you deem relevant, for example, your new lease for premises or details of a new entity you may have created during the year.
If you’re not reporting through STP visit ato.gov.au/STP or speak to your accountant.
✔️ Claim all work-related expenses.
✔️ Certain tax offsets and government rebates as shown here.
✔️ Certain interests imposed by the ATO.
✔️ Receipts for tax deductible donations and gifts.
✔️ Self-employed concessional super contributions up to $25,000 in any one financial year .
✔️ Income protection insurance premiums are tax-deductible if bought outside of superannuation, so remember to include your income protection expenses.
✔️ If you use a tax accountant, provide statements, as their fees are tax-deductible.
Note: All the information mentioned above should be reported through STP in your myGov account linked to ATO online services before tax time.
Get some tips on how to get most out of your tax returns by simply reading this article on 9 common tax deductions you might not know about here.
Visit the ATO website for more information about meeting your end of year obligations, including:
If you’re a small business owner:
Plan for the future so that you can build in a larger financial buffer to future-proof your practices For example, ask questions to yourself like:
Also, don’t forget to take a break, rest and recharge; you’ve earned it. This year has been a tough year for everyone with a global pandemic causing major disruption to small businesses. Plus the emotional burden of striving to stay on top of COVID setbacks is not an easy journey. That is why the end of the financial year is a great time to look at how your business has performed, where it’s improved and where you’ve faced challenges. Learn from your mistakes and start creating goals and metrics for the coming year. Review your goals regularly. Create a new budget based on available data from your previous year.Look into new software and workflow options to make your business more efficient. Do whatever you need to do based on what didn't work well this year. Take it as a lesson and plan for what’s to come so that you can avoid unwanted surprises. Agree?
Thanks for reading this blog. Hope it serves you well and if you have any questions, please feel free to reach out to us anytime via our social media platforms: facebook, instagram, email, or twitter.