Estimated reading time: 5 minutes
Here’s the most common question people ask us every year:
“How can I get a bigger refund and pay less tax?”
Getting a bigger tax refund isn’t about finding loopholes. With a little organisation and the right help, it’s about knowing what you’re already entitled to claim. These four simple tips will help you make the most of your next return.
Key Takeaways
- Keep every work-related receipt. Lost receipts mean lost deductions.
- If you drive for work, keep a logbook. You only need to do it once every five years.
- A registered tax agent finds extra deductions to improve your refund. And their fee is tax-deductible.
- Small expenses add up, so claim everything you’re entitled to.
1. Keep Your Receipts to Claim More Deductions
Keeping track of your receipts sounds easy, right? But in fact, a huge percentage of Australians lose track of receipts each year.
If you lose your receipts, you miss out on claiming tax deductions. Every lost or forgotten receipt is like saying “no” to money that you deserve to get back.
Each time you make a work-related purchase, keep the receipt or invoice, either save a photo in a folder on your phone, or store it in a sturdy envelope. Then, when it comes time to do your tax return, you’ll know exactly where to find the receipts you can claim.
Read more about managing your receipts to save time and save tax.
2. Keep a Car Logbook
If you ever drive your car for work purposes (not including trips to and from home), keep track of it. This is a valuable tax deduction for millions of workers.
Record the kilometres you’ve travelled for work in a logbook or diary. It makes claiming the costs much easier – and you only need to do this once every five years! Your logbook must cover every trip in your car over a 12-week period. Keep a copy of your logbook, in case the ATO asks to see it (and they do sometimes check).
3. Get Professional Advice
Did you know that most Australians use a tax agent (like Etax) to do their tax return?
Using a tax agent means a qualified professional checks your return for accuracy and looks for extra deductions to improve your tax refund.
A tax agent helps you avoid trouble with the ATO (or helps you deal with the ATO if any problems do arise). A tax agent can also get you deadline extensions that are not available directly from the ATO. You can even claim the tax agent’s fee as a deduction next year. That’s a win-win!
4. Sweat the Small Stuff!
Small amounts like $10 or $20, here and there, may not seem like much, but across a whole year those dollars really do add up. As soon as you get a receipt, snap a picture and save it so you never miss out!
Track every small expense throughout the year and you’ll be surprised how much they add up to at tax time.
What’s Next?
When you do your next tax return at Etax,
- Open up your folder of receipts,
- Only look at receipts dated between 1 July of the previous year and 30 June in the current year,
- Organise them by type, eg. car expenses, home office expenses, mobile or internet, travel expenses, etc.
- Enter them in each section of your Etax return.
- There’s no need to attach every receipt to your return – that can really slow you down.
Do you have any other tips or simple ways to improve your tax refund? Let us know over on our Facebook page or email us on [email protected]!
Frequently Asked Questions
The easiest step is to keep every work-related receipt as you go, either as a photo on your phone or in an envelope. Receipts you can’t find at tax time are deductions you can’t claim.
Yes! The fee you pay a registered tax agent (such as Etax) to prepare your return is tax-deductible the following year. Our accountants tell us it’s one of the most overlooked deductions available to Australian taxpayers. (Note: If you use Etax, we’ll add it to your return next year automatically.)
You only need to complete a logbook once every five years. It must cover a continuous 12-week period and record every trip you make in the vehicle during that time.
Common deductions include work-related travel, tools and equipment, uniforms, self-education costs, and home office expenses. When in doubt, keep the receipt and a tax agent can advise whether it’s claimable.
One last note: For more tax-saving tips and ideas about tax deductions, there’s an entire category of helpful “improve my tax refund” posts on the Etax blog.
