Did you know that lost receipts are costing 25 per cent of Australian small businesses up to $10,000 a year when it’s tax time, with 8 per cent reporting a loss of up to $100,000 from lost receipts? It’s an outcome from a study released by NAB and Australian fintech firm Slyp, which you can learn from to prepare you or your business for your next tax return and avoid being a part of next year’s statistics.
It might not seem like much, but making sure that you have all of your records ready for us to do your tax return (be it as an individual or as a business) makes our job a lot easier. It can also benefit you, as we will be able to find exactly what we need to help you get appropriate deductions, claim expenses and generally fulfil your tax obligations.
Here are a few efficient ways to employ record-keeping to prevent lost receipts, come tax return time :
- The tried and true “shoebox method” of paper receipt collection
- Ask for digital receipts (if possible) and store them in a folder on your computer as well as a hard copy
- Ensure that evidence of Income Protection Insurance, investment expenses, rental property expenses and the cost of maintaining tax affairs is kept in a secure location for tax time
- Create documented evidence of work-related expenses (such as travel, motor vehicle expenses, etc) in a logbook or diary to assist in the long-term tracking of your taxable deductions
Some deductions and claims may require more specific information from you for proof, which we can determine if we have access to your receipts and records. Keeping copies of your receipts across multiple platforms (such as online, offline and hard copy) will ensure that there is always evidence to support your claims, even if something were to happen to one of the copies.
You can also speak with us regarding your specific tax obligations and tax return, and we can provide you with more information about what might be required from you in terms of record-keeping.
NEW REPORTING REGIME FOR SHARE ECONOMY TO BE INTRODUCED
Share economy platforms, like Uber, Airbnb and Menulog will be required to report information of all transactions to the ATO under a new reporting regime to be introduced next year.
The share economy, or “gig economy” as it is also known, has become somewhat of a lucrative sideline for many who may be looking for a short or long-term solution to additional income.
Share economy platforms that relate to ride-sourcing or short-term accommodation services will be the first to adhere to the reporting regime and will be required to report these transactions from 1 July 2022. All other share economy transactions will fall under the new reporting regime from 1 July 2023.
If you are a share economy worker or use the gig economy to supplement your income, the to-be-introduced reporting regime will make it far easier for you to ensure that you are meeting your tax obligations, and reporting all of your income.
WHAT TO DO WHEN YOU MAKE A MISTAKE ON YOUR TAX RETURN
It’s not the end of the world if you do happen to make a mistake on your tax return, especially if you’ve already submitted it to the ATO.
You can lodge an amendment through your myGov account, through ATO’s online services, and then selecting “manage tax returns”. You should wait until your original tax return and amendments have been processed before you submit a consecutive amendment to the return.
This online amendment will take 4 weeks to be processed once lodged. An amendment made in writing will take up to 10 weeks to process.
The myGov website will provide you with updates for both the tax returns and amendments, which should alert you of the progress being made. By the end of this process, it should show you how much money will be issued for your claim.
Curve can also amend this for you.