Tax season is stressful, but getting everything in order before meeting with your accountant makes the process much smoother. Properly preparing for tax return season helps you maximise deductions, avoid delays with the ATO, and ensure accuracy.
This guide outlines exactly what to take to your accountant for a smooth tax return process, plus a tax return checklist in Australia.
Step 1: Organise Personal Details
Your accountant will need updated personal details to ensure your tax return is filed correctly. Please bring:
- Tax File Number (TFN) – Important for identifying you in the tax system.
- Australian Business Number (ABN) (if applicable) – Required for sole traders and business owners.
- Updated Contact Information – Including your phone number, email, and address.
- Changes in Personal Circumstances – If you’ve married, divorced, had a child, or gained/dependent, these changes may impact your tax obligations or entitlements.
Always keep these personal details for tax returns current to prevent errors and ensure you claim all eligible benefits.
Step 2: Gather Income Documents
Ensuring all income is correctly reported prevents ATO audits and penalties. To make sure that your income is accurately reported, bring:
- Income Statements – These can be provided by your employer via Single Touch Payroll (STP) through myGov.
- Bank Interest Statements – Any bank interest earned from your savings accounts.
- Dividend Income – Statements from share investments.
- Rental Income – Statements from property managers or direct rental payments.
- Business Income – If self-employed, you need to provide profit/loss statements and invoices.
- Government Payments – Centrelink payments such as JobSeeker or Family Tax Benefits.
- Foreign Income – Earnings from overseas employment, investments, or pensions.
Step 3: Document Your Expenses
Keeping receipts and records ensures you claim all allowable deductions without risking ATO scrutiny. And since claiming deductions reduces your taxable income, bring documentation for:
- Work-Related Expenses – Uniforms, tools, professional memberships, and industry-specific costs.
- Home Office Expenses – Electricity, internet, furniture, and supplies (keep a log of hours worked from home).
- Vehicle Expenses and Travel Costs – Logbook records for work-related car use, fuel receipts, and parking.
- Education and Training – Costs for courses, seminars, or certifications directly related to your job.
- Self-education Expenses – If you’re studying to improve your current work skills, bring course fees and material costs.
Step 4: Prepare Superannuation and Investments Information
Your accountant can help you determine the tax impact of your investments. If you contribute to superannuation or have investments, bring:
- Superannuation Contributions – Statements for voluntary contributions (which may be tax-deductible).
- Managed Fund Distributions – Yearly tax summaries.
- Investment Income – Interest, dividends, and any share-related earnings.
- Capital Gains or Losses – Records of asset sales (property, shares, or crypto) showing purchase and sale details.
Step 5: Gather Proof of Donations and Charitable Contributions
If you’ve made donations to registered charities, you may be able to claim a deduction. You need to have the following in hand:
- Receipts for Donations Over $2 – It must have the charity’s name, date, and amount.
- Workplace Giving Statements – If donations were deducted from your salary.
Only donations to Deductible Gift Recipients (DGRs) are tax-deductible.
Step 6: Collect Details on Rental Properties
To claim all allowable deductions, prepare proper documentation. If you own rental properties, provide:
- Rental Property Income Statements – From property managers or tenants.
- Mortgage Interest – Statements showing interest paid on investment loans.
- Rental Property Expenses – Including repairs, maintenance, insurance, and strata fees.
- Depreciation Schedule – If you’ve had a quantity surveyor assess your property.
Step 7: Organise Records of Any Assets or Purchases
Work-related assets and investment property assets are examples of records that can impact depreciation claims and deductions. If you have asset purchases for work or investment purposes, bring:
- Receipts for Work-Related Purchases – Laptops, tools, and office equipment.
- Records of Investment Property Purchases – Including stamp duty and legal fees.
- Depreciation Records – If applicable for tax purposes.
Step 8: Get Your Health and Insurance Documents
Certain health and insurance policies may affect your tax return. Your accountant can advise on any applicable tax benefits, so if you have them, bring:
- Private Health Insurance Statement – To determine if the Medicare Levy Surcharge applies.
- Income Protection Insurance Premiums – Deductible if not paid through superannuation.
- Life Insurance Policies – Not tax-deductible, but useful for financial planning.
Step 9: Record of Foreign Income (if applicable)
All Australian tax residents must declare worldwide income, so if you’ve earned money overseas, you’ll need to provide:
- Foreign Salary Statements – This includes any tax paid in other countries.
- Overseas Investment Income – Interest, dividends, and rental earnings.
- Foreign Tax Paid – This is to determine eligibility for foreign tax offsets.
Step 10: Ask About Tax Incentives and Deductions
A professional accountant can help ensure you’re maximising tax savings. There may be tax incentives available depending on your situation. Ask your accountant about:
Small Business Tax Concessions – Including asset write-offs and deductions.
Government Rebates and Grants – Potential offsets or incentives for your industry.
Work-From-Home Deductions – Flat rate vs. detailed expenses.
Step 11: Understanding the Tax Lodgement Process
Lodging your tax return correctly ensures compliance with the ATO and maximises the refunds you can acquire. You have two main options:
Self-lodgement via myTax – The ATO’s online portal lets you lodge your tax returns directly. This option is suitable if you have straightforward tax affairs, minimal deductions, and confidence in handling your own return. However, do note that mistakes can lead to missed deductions, delays, or ATO audits.
Lodging with a Registered Tax Agent – Engaging a professional accountant offers several advantages. An experienced accountant ensures you claim all eligible deductions, including lesser-known work-related expenses, investment-related deductions, and government incentives.
Tax professionals typically handle the entire tax return process, reducing the burden of navigating complex tax laws and paperwork. Most registered tax agents also have access to extended lodgement deadlines beyond the standard October 31 cut-off.
A well-prepared return with accurate documentation lowers the chances of audits or compliance issues.
The Benefits of Being Prepared for Tax Time
Taking the time to organise your tax documents before lodging your return can make a significant difference in the process. An effective tax return preparation means:
Less Stress: Avoid the last-minute scramble and ensure everything is ready before the deadline.
- Better Accuracy & Compliance: Minimise errors and meet all ATO requirements to prevent unnecessary audits or penalties.
Maximised Deductions & Refunds: A thorough record of your income, expenses, and eligible claims helps you take full advantage of every deduction available.
Make tax time simple and stress-free. Whether you need guidance on complex tax matters or just want to ensure you’re getting the best return possible, Verus Accountant & Advisors is here to help.
Based in North Sydney, we provide expert tax advice tailored to your financial situation.
Need help with lodging your tax returns in Australia?
Get in touch today, and let’s make tax time work for you!
