Tax experts issue urgent warning as end of financial year looms
As tax time rapidly approaches, H & R Block told NewsWire Australians should take their time and gather the right supporting documents if they are to maximise their returns this financial year.
H & R Block director of taxation communications Mark Chapman had a simple message for taxpayers.
'If you can't substantiate it, you can't claim it,' he said.
'This underscores the importance of maintaining clear records — receipts, invoices, and logs — for all deductions to ensure compliance with ATO requirements.'
Mr Chapman said Australians record keeping should start with maximising their work-related deductions, with the ATO letting taxpayers claim up to $300 in work-related items without receipts, although he advised to make sure they have a record in case.
These include expenses on home office costs, tools and equipment for work, professional memberships and work related travel.
BDO business services partner Mark Pizzacalla agrees saying if you've spent money to earn an income there's a good chance it's deductible.
'That includes working-from-home expenses, travel between jobs, uniforms, tools, professional development, and even union fees,' he said.
'Bear in mind that the ATO is increasingly data-driven and you need to keep your receipts and records to ensure that you can substantiate your claim.'
He also highlights there a number of things Australians can do to make their taxable income fall prior to June 30.
'If you've been proactive before 30 June, there are a number of strategies that can help reduce your taxable income, including making a personal super contribution, making charitable donations above $2 to gift deductible recipients, or prepaying deductible amounts for certain eligible expenditures,' Mr Pizzacalla said.
The calls from the tax experts come as the ATO is warning Australians to be patient with their tax returns.
Last year 142,000 people who lodged in the first 2 weeks of July had to lodge amendments, or had their returns investigated and amended by the ATO to fix inaccuracies in their tax return, for example, income that had not been declared properly.
ATO Assistant Commissioner Rob Thomson said that waiting until late July allows for the ATO to prefill information in your tax return.
'We know doing your tax return is something to tick off your to-do list each year, but there's no need to rush. The best time to lodge is from late July once everything is ready.'
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