2018 Tax-Time Checklist
You may have read the news articles or have seen the social media posts from the Australian Tax Office. Your 2018 Tax Return will be under more scrutiny than any year ever before.
The following is the COMPLETE tax return checklist. We know it is long - but we have done all the hard work for you. It includes the income that you need to include and the deductions you can claim.
To ensure you are prepared for your appointment we will need the following information:
* For our Gold Coast in office appointments please bring the following information with you, and
* For our online Australia-Wide appointments make sure that you have the following information available upon our request
A copy of last year’s tax return
Bank account details where you would like the refund to be paid to
Income – see breakdown below
Deductions – see breakdown below
Spouse details (married or defacto) – Full name, Date of birth and Taxable income for the year
Number of dependant children
Amount of child support you have paid in the year
Lets break down Income and Deductions....
Salary or Wages
Please provide a copy of your PAYG payment summaries and if applicable any paid parental leave payments.
Allowances, earnings, tips, director’s fees etc.
This is usually located on your payment summary. Please be aware that receipt of an allowance does not automatically entitle an employee to a deduction for expenditure to which the allowance relates (e.g. tool allowance).
Employer Lump Sum Payments
These payments are in respect of unused annual and long service leave paid out on termination of employment. Label A and B of the client’s PAYG payment summary should contain the relevant information. Also, obtain and attach a copy of a statement of termination from the client’s employer.
Employment Termination Payments (ETPs)
Please provide a copy of any ETP payment summaries and employer termination statements.
Australian Government allowances and payments like Newstart, youth allowance and Austudy payment
Provide details of all youth allowances, Newstart, sickness allowance or special benefit, or other educational or training allowances. (Please Note: paper copies are no longer sent by Centrelink and will need to be obtained via my.gov)
Australian Government pensions and other allowances
(Please Note: paper copies are no longer sent by Centrelink and will need to be obtained via my.gov)
Australian annuities and superannuation income streams
Provide details of taxable and rebatable components of pension.
Australian superannuation lump sum payments
Superannuation lump sums paid from a taxed source to a person aged 60 or over are tax free. Lump sums paid to persons under 60 are still taxable. Please provide details of these.
Interest that has been received or credited in the 2017 Financial Year, from your Bank or Financial Provider
Unfranked, partly franked and fully franked dividends are assessable for taxation purposes. Please provide copies of your dividend statements.
Employee share schemes (ESS)
Please provide details of any Employee Share Schemes.
Please note the discount given on the ‘ESS interest’ (being a share or a right to acquire a share) under the ESS is assessable for taxation purposes unless the deferral concession applies. This assessable discount may be reduced by $1,000 where certain conditions apply.
Partnerships and Trusts
Please provide details of the partnership, trust or a managed investment trust fund payment and type of income received are required. In the case of a Partnership and Trading Trust please provide a copy of the tax return. In the case of Managed Trusts, please provide the tax summary from your Shares portfolio provider or Broker
In the case of any possible Capital Gains you will need to provide:
a description of the asset
the purchase date
the purchase cost
date and amount of any expenditure incurred by the taxpayer that forms part of the asset’s cost base including eligible incidental costs
the sale date (or exchange of contract date if earlier)
the sale proceeds amount.
Foreign source income and foreign assets or property
Provide details of country, amount received, exchange rate utilised, foreign tax withheld.
Provide details of:
rental income earned
interest charged on money borrowed for the rental property
details of other expenses relating to the rental property
details of any capital works expenditure to the rental property.
Please provide details of any of the following that has been received during the year including:
a non-qualifying component of an ETP
lump sum payments in arrears
foreign exchange gains
certain scholarships, bursaries, grants
any assessable balancing adjustments on depreciating assets
jury duty service fees
REMEMBER THE THREE GOLDEN RULES
You must have paid for the expense and not been reimbursed, there must be a direct connection to earning your income and lastly you must have a record to prove it
Work Related Car Expenses
As of the 2016 year there are only 2 methods available to use
1. Cents per kilometre method
This claim is based on a set rate for each business kilometre travelled which is 66c. The taxpayer is able to claim costs by applying the set rate up to a maximum of 5,000 kilometres, "without a logbook"
**Please note you will still need to justify that these kilometres have actually been travelled - that means that the ATO will require you to substantiate your kilometre claim, they can and will call your employer to find out if you are required to use your motor vehicle. You will also need to show your workings on how many kilometres have been calculated.
**To make sure you get it right we recommend you always keep a logbook! At the very least, get a signed letter from your employer stating that you must use your own car
2. Logbook method
This claim is based on the business use percentage of car expenses. Ensure log is kept for 12 consecutive weeks and business use percentage did not vary more than 10%. The resulting business use percentage may then be applied to all car expenses to calculate a deductible amount. The log book must be renewed every 5 years.
**Please note you must have a starting and ending odometre for every year claimed for the log book to be valid
Work Related Travel Expenses
Generally requires you to sleep away from home. Expenses include meals, accommodation, car hire and incidentals (such as tolls, parking and hire of third party vehicles).
Must provide documentary evidence as well as diary evidence.
**Receipts must be kept for all deductions claimed even if they do not exceed the daily allowance as set by ATO
Work related uniform, occupation specific or protective clothing, laundry and dry cleaning expenses 1. Protective clothing and safety footwear: clothing or footwear that is specifically designed to protect or compulsory uniforms: unique and distinctive to the employer. 2. Non-conventional clothing that the employee is required to wear and is registered with AusIndustry or 3. Occupation specific: clothing that identifies a person as a member of a specific profession, trade, vocation, occupation or calling **Please be aware that ordinary clothing is not deductible, even if your employer requires you wear a specific colour or style. Launder of Uniform is only allowable for eligible
Records Needed: You must have written evidence, such as diary entries and receipts for your laundry expenses if both of the following apply:
The amount of your claim is greater than $150.00
Your total claim of Work Related Expenses exceed $300.00
If you don't need to provide written evidence for your laundry expenses, you may use a reasonable basis for working our your laundry (that is washing, drying and ironing):
$1 per load - if the load is made up of only work related clothing, or
50c per load if other items of clothing are included
**Please note: You cannot claim a deduction for the launder of uniform if it is does not satifisfy the 3 above requirements.
Work Related Self-Education expenses
Self-education expenses are deductible when the course you undertake has a sufficient connection to your current employment, and maintains the specific skills or knowledge you require in your current employment or results in (or is likely to result in) an increase in your income from your current employment.
You cannot claim a deduction for self-education for a course that relates only in a general way to your current employment or profession, or will enable you to get new employment - such as moving from a nurse to a doctor.
If your self-education is eligible you may be able to claim a deduction for your expenses. Examples include student union fees, books, stationery, consumables, travel and depreciation.
**Please note: You cannot claim for tuition fees if you have been reimbursed for them or paid by someone else, including your employer. You also cannot claim for fees that have been paid under a government loan eg: HELP, SFSS, SSL and TSL programs
Other work related expenses
Examples include union fees, seminars, overtime meals, home office, telephone, subscriptions, briefcase or ladies bag that is used to carry a laptop), calculator, electronic organiser, depreciation on assets costing > $300 and write off of assets not exceeding $300.
**Please note: There will be a high scrutiny of these expenses this year, make sure that you follow the three golden rules when considering your deductions
Gifts or donations