Mistakes You Need to Know About Australian Tax

As we all know, tax time is a stressful time. Luckily, there are platforms that will help you stay on top of your finances. This way, you can minimize the risk of making common tax mistakes. For example, people often fail to provide supporting documentation when they file their tax returns. This is especially true if you own rental properties.

One of the biggest mistakes that Australians make when it comes to tax time is failing to properly declare their income. This includes capital gains from cryptocurrency and income from the "sharing" economy. In order to claim deductions, you need to keep receipts and have a record of your purchases. This will make your tax return as accurate as possible. It's important to remember that there are three golden rules that you need to follow when claiming deductions.

If you're an Australian resident, you must declare any foreign income that you earn. You must also make sure to claim any rental income you earn. The length of your rental period is also a factor. Make sure you have a professional tax agent when you're preparing your tax return.

The ATO also requires businesses to submit Activity Statements (BAS). These statements summarize the information needed to calculate their tax liabilities. A business' BAS must be filed on a monthly or quarterly basis. The ATO will review BASs for accuracy. The ATO will notice any mistakes you make in reporting these amounts.

Getting your TFN is a crucial step when starting a new job. It will be your identity document and record-keeping document. It may take up to 28 days to complete, depending on your circumstances. It is important to keep this document safe because you may not be insured without it.

Keeping receipts for depreciation is an important part of claiming deductions for investment property. However, it is important to remember that there are strict rules regarding claiming these deductions. Don't make the mistake of claiming expenses that you didn't incur while renting out the property.

Tax preparation is big business, and mistakes can have an outsized impact. Many small businesses don't think about their tax situation until it's too late. One mistake that many small business owners make is failing to file the correct business tax return, as well as overclaiming deductions and not claiming enough income.

When you file your tax return, you must remember to link your myGov account to your tax services before tax time (1 July). You don't have to do it all alone. There are also registered tax agents who will prepare your tax returns for you, but they must contact the ATO before 31 October.