Does tax time usually catch you by surprise? If the end of the financial year sees you scrambling for receipts and other records, here are some tips to help you get organised. When it comes to getting ready for tax time, a little organisation goes a long way. If you’ve sorted and stored your paperwork, tax time will become that much easier because you’ll know exactly where to find all those important documents for your next tax return. So, this time, think ahead to tax time.

What paperwork will I need?
To complete your tax return, you'll need two main types of records - those that show the income you’ve received, and those that show any tax-deductible purchases you’ve made. Here are some examples to help get you started.

Documents showing income received:
These can include payment summaries from your employer and any other paperwork showing your salary, benefits and allowances; summaries of benefits received from Centrelink or Veterans Affairs; statements showing any dividends or investment income you’ve received, and bank statements showing any interest you earned on your bank accounts and term deposits etc.

Documents showing tax-deductible expenses:
These can include receipts for any deductible items you may have paid for (e.g. eligible work or study-related expenses); summary statement of payments for private health insurance; other health-related receipts which may entitle you to a tax deduction if you are over a certain threshold; receipts from registered charities for any tax-deductible donations you have made.

In addition, you’ll need any documents showing the sale or purchase of an asset which might be subject to capital gains tax - for example a property (other than your primary residence) or shares. Keep any documents showing the dates these transactions took place. The same applies to dividend reinvestment statements from a unit trust or managed investment fund.

How long do I have to keep these records?
Any records that are used to create your tax return must be kept for five years after you lodge your return. If the Australian Tax Office has any queries about your return, they may wish to see these records to verify certain information. Some records may need to be kept for longer - you should check with your accountant, your registered tax agent, or the Tax Office to find out more.

When do I have to lodge my return?
If you prepare your own tax return (i.e. you don’t use the services of a tax agent or your accountant), you'll need to lodge by 31 October 2009. If you think you may have a problem getting the required paperwork by 31 October 2009, call the Tax Office sooner rather than later on 13 28 61 to see if you are able to lodge at a later date.

If you’re using a tax agent or accountant for the first time this year, or if you’ll be going to a different agent from the one you used last year, you'll need to have your tax appointment before 31 October 2009.

How do I lodge my tax return?
You can lodge a tax return in a number of ways. By mail: use the TaxPack 2009 to prepare your own tax return and lodge it by mail. You can obtain a TaxPack from your local newsagent, or order one online at the Tax Office website - www.ato.gov.au.

Online: visit the Tax Office website to find out how to use their e-tax system to lodge your return online. Information for e-tax 2009 will be available on their site from 1 July 2009.

Money 101’s Taxing Times module takes the learner through all the important issues related to tax time.  For more information on the Money 101 products or to view the Taxing Times modules please click on the link below.

Taxing Times Module

Source: workingcarers.org.au/