Stress free tax time? Consider it done.
Tax time has a tendency to roll around all too quickly. If you dread the administration and risk involved in completing your tax return, Hatcher has you covered. Our team of experts understand the process involved in accurately preparing your tax return, and can help you to make sense of everything.
Tax Returns for your needs
Tax returns can differ based on your individual or business circumstances. The ATO generally requires the following parties to lodge a tax return:
- Individuals and trusts
- Consolidated groups
- Companies and super funds
- Medium/ large taxpayers
Understanding your tax return as a business owner
If you’re operating a business in Australia, you must complete a tax return even if your business hasn’t earned any income. This is because there’s no threshold for business income, so even earnings as little as $1 must be reported to the ATO.
The financial information you need to report – and how you lodge this as part of your annual tax return – will largely depend on what type of business entity you run. How and when you lodge your tax return as a business owner differs between:
- Sole traders
- Trusts and beneficiaries
- Partnerships and partners
Understanding your financial reporting requirements is a critical part of running your business successfully and securely. The good news is that Hatcher can help you the whole way through.
Tax Returns for individuals
Hatcher can help you to accurately prepare your individual income tax return. As an individual, you must lodge a tax return if:
- Tax was taken out of your pay during the tax year (1 July – 30 June)
- Your taxable income reached the appropriate thresholds
The ATO uses information from your tax return (such as your income levels and the amount of tax you’ve paid) to calculate whether or not you will receive money back (a tax refund).
Claiming Work-Related expenses as an employee
To lodge your tax return, Hatcher can help you to discern:
- How much income you have earned from employment (including cash in hand)
- How much tax has been withheld (money that’s been subtracted from your pay by your employer, and sent to the ATO)
- How much interest you have accrued on bank accounts or other investments
In addition, our team can help you to make sense of the tax offsets and deductions you can claim. Deductions can be described as money spent on items that help you to earn an income – for example, work uniforms, equipment, technology and other out-of-pocket expenses.
Claiming work-related costs as an employee isn’t always black and white. You must be able to prove to the ATO that expenses directly relate to earning your income, and are not private in nature. You’ll also need a receipt or other proof of your expenses in case the ATO comes calling.
Frequently asked questions about tax and accounting.
- Declaring all eligible deductions is one way to pay less income tax in Australia. Making donations to a registered charity is yet another means to reduce your tax liability. If you feel like you’re paying too much tax, speak with our team today.
- The answer to this question will depend on your current circumstances and long-term financial goals. Reviewing key financials such as your income, liabilities, superannuation, capital losses, and dividends can all help our team to provide you with the right advice at tax time. If you’re interested in reducing your tax through legal and trusted means, drop us a line today.
- Again, the deductions related to your car or motor vehicle will all depend on your personal situation. As a business owner, you may be able to claim a tax deduction for expenses relating to eligible motor vehicles – provided these connect with running your business. We recommend chatting with our team to see if your car represents a potential tax write-off.
Disclaimer: Hatcher Advisory and its subsidiaries, together with its owners, managers and employees have endeavoured to ensure the information on this website is accurate. However, you must undertake your own research and seek advice from your financial advisor, broker or accountant to ascertain its application to your specific circumstances. We do not take responsibility for any outcomes based on this material.