Tax return income and deductions checklist

17 July 2019

As tax time rolls around again, it’s important to understand what you need to declare as income, and what you can claim as tax deductions.

Below is a list of items that you may need to consider, depending on your individual circumstances.

Income

It’s important to declare all forms of income on your tax return.

Below is a list of income items that need to be declared if they apply to you:

• Income reported on your PAYG Payment Summary or Income
  Statement (for all jobs you hold)
• Allowances / Tips / Director’s Fees
• Employer lump sum payment
• Centrelink / pension income
• Annuities / superannuation lump sum payments
• Interest amounts and TFN credits
• Dividend statements
• Employee share schemes
• Partnership and trust distributions
• Business income
• Capital gains or losses on property and/or shares
• Foreign income (e.g. foreign pensions, foreign employment income
  and capital gains on overseas assets)
• Rental property income
• Royalties
• Taxable scholarships
• Jury service payments
• Income earned via the sharing economy (e.g. Uber, Airtasker,
  Airbnb etc.)

Other items to consider

In addition to declaring income, you’ll also need to provide details of any of the below items that may apply to your situation:

• HELP (Higher Education Loan Program) / HECS
• SFSS (Student Financial Supplement Scheme)
• Child Support Agency Liability
• Net Medical Expenses Offset
• Private health insurance statement
• PAYG instalment credits
• Other offsets and tax credits
• Reportable fringe benefits amount

Deductions

What you can claim as as tax deduction will depend solely on your individual circumstances.

When including a deduction claim on your tax return, you must ensure you are eligible to make the claim, and can provide evidence that you incurred the expense.

It’s best to speak to your tax agent if you are unsure about which deductions you are eligible to claim.

Below are some examples of common tax deductions that you may need to consider when lodging your tax return.

General tax deductions

• Work related motor vehicle expenses (logbook maybe required)
• Gifts and donations
• Tax related expenses (inc. tax agent fees, travel to tax agent)

Specific deductions

• Un-deducted Purchase Price – Pension / Annuity
• Income Protection Insurance
• Union fees
• Home office expenses
• Work specific seminars / courses / conferences
• Overtime meal expenses
• Briefcase
• Tools and equipment
• Telephone / mobile phone / internet
• Bank fees (e.g. re: deductible purchases)
• Interest expenses (e.g. re: deductible purchases)
• Sun protection items (if you job requires you to work outdoors, e.g.
  sunscreen, safety glasses, protective gloves)
• Reference books / journals / trade magazines
• Prior year losses
• Superannuation contributions

Contact the team at Shakespeare on 08 9321 2111 if you’d like to discuss how this information may apply to your individual circumstances.

Sources:

ChangeGPS Pty Ltd “ITRs Items to Consider” July 2019

Australian Taxation Office “Tax Time Toolkit – Including all your income is important” July 2019

General disclaimer:

Our firm provides the information on this website for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation.

Tax articles on this website are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose .