2019 Income Tax Checklist
- PAYG Payment Summaries (Group Certificates (this can be found via myGov)) - Also require name of occupation.
- Centrelink PAYG Payment and Summaries - Pension or Unemployment Benefits etc.
- Lump Sum and Retiring Pay (ETP's) - Including all documentation on superannuation advices and Termination Payment Statements.
- Interest Received - From Banks and other Financial Institutions.
- Dividend Income - Franked, unfranked and imputation credit amounts. Provide dividend slips. Date of payment of dividend important.
- Employee Share Schemes - Please provide all information regarding the acquisition/allocation of any employee shares, or sale of any employee shares for the year.
- Managed Funds - require annual taxation statement from fund.
- Other Income - Jury duty, partnership or trust distributions, foreign income, insurance payouts.
- Rental Income and Expenses:
- Total amount of rent received during the financial year or statements from your managing agent
- Details of the related such as:
- Depreciation from an ATO compliant tax depreciation schedule.
- Interest on loans - you should have a statement from your lender
- Water and Council rates
- Education material related to the management of the property (seminars, journals etc.)
- Agent Management fees - you should have a statement
- Repair costs - that are not included in your \agent's statement
- Insurance - including landlords insurance and building insurance
- Prepaid interest (if applicable)
- Any other costs
- If you bought a new property during the financial year you will need to provide a copy of the purchase contract, the loan agreement (including borrowing costs), the solicitor's settlement statement, stamp duty paid etc.
PLEASE NOTE CAREFULLY:
Information contained in this checklist is intended to be used as a guide only and any deductions to be claimed require substantiation by the retention of receipts or other suitable proof of your expenditure. Speak to your accountant at Maclean Partners about claiming more to increase your tax refund.
ATO AUDIT FOCUS:
Please note, the ATO is continuing its focus on rental properties to ensure taxpayers are claiming in accordance with the law, and are declaring all rental income. Has all rental income been declared and only legitimate expenses claimed?
- Motor Vehicle Expenses - If you used your own car for work purposes, you will need to provide the number of work related kilometres travelled. If a log book was used, provide details of the log book and expenses relating to the vehicle, e.g. registration, insurance, fuel costs etc. Excludes general travel to and from work. (If claiming a motor vehicle for carrying bulky tools of trade to work and home, the tools must exceed 20 kilograms.
ATO AUDIT FOCUS:
Please note: The ATO is continuing its focus on Motor Vehicle Expenses as an audit
- Work Related Travel Expenses - (excluding motor vehicle expenses - such a utility trucks or panel vans with a carry capacity of one tonne or more, vehicle with a carry capacity of nine or more passengers, and motorcycles). Also, you can claim work related running costs incurred for a borrowed car, a car owned or leased by someone else. Also includes flights, accommodation, car hire etc. for seminars/events that are work related - also have you had any domestic or overseas travel? Have you kept a diary/receipts? Need to substantiate travel claims.
- Work Related Uniform Expenses - Occupation specific, compulsory or protective clothing. Compulsory uniforms must be embroidered with work logo. Also laundry/dry cleaning expenses.
- Work Related Self-education Expenses (University or TAFE courses that relates to work) - If the self-education was to help get a new job or commence a new income-earning activity, the expenses can not be claimed.
- Other Work related expenses including:
- Diary, Stationery or work materials
- Union or professional fees
- Telephone and mobile phone expenses (work related use)
- Purchase of technical journals and magazines
- Tools of trade - repairs and/or replacement
- Overtime meal allowance deductions - provide copy of payslip detailing meal allowance and how much is received per meal
- Protective equipment
- Sun protection products
- Computers and software
- Home office expenses (rate of 45c per hour x number of hours)
ATO FOCUS AREAS:
The ATO is continuing its focus on deductions claimed for work related mobile phone, internet, computer and other IT expenses. The ATO is now conducting data-matching focused on eBay sellers. Through extensive data matching the ATO will focus on incorrect or fraudulent refunds form both over claims and deliberate fraud. The ATO will continue a focus on occupations that have shown a pattern of relatively high levels of claims. This year the ATO will continue to investigate high income earners involved in tax avoidance schemes, with a particular focus on widely-marketed financial products that promise substantial tax benefits as well as investments by medical practitioners. The ATO will use third-party data to detect omitted income from dividends and interest, capital gains, and foreign source income - Uber & AirBNB. Laundry expenses, can only be claimed if you have a uniform, protective clothing or occupation specific clothing.
- Donations - to tax deductibility charities only (substantiation must be provided)
- Taxation and Accountancy fees - Can also claim motor vehicle on a cents per kilometre basis for travel to tax agent.
- Interest paid - on marginal loans in regards to managed funds/shares
- Personal Superannuation Contributions - made to a super fund, and if:
- If eligible, will require a section 290-170 notice (previously known as section 82AAT notice) that will details:
- Full name of fund
- Fund ABN
- Fund TFN
- Account number
- Amount contribute
- Sickness, accident and income protection insurance - Does not include life insurance or TPD
- Private Health Insurance - Private health insurer should send out an annual statement with all information required
- Spouse's - name, TFN, date of birth and adjusted taxable income. Did your spouse receive any Centrelink benefits?
If you have a spouse, we need a copy of the spouse's tax return if the return has been prepared privately or by another accountant. We require both yours and your spouses tax returns completed before we can lodge the returns. Changes to the ATO rules from 2010 mean that family income affects eligibility to a number of tax offsets/rebates and therefore possibly your tax.
- Dependant children - dates of birth, and any separate income they may have earned.
- Zone - location based on place of residence.
- Net medical expenses - exceeding $2,265 (or $5,343 for high income earners). This is only available for medical expenses relating to disability aids, attendant care or aged care. 2019 is the last year for medical expenses.
- Senior Australian and Pensioners Tax Offset - Subject to income threshold and Government eligibility requirements.
- Capital Gains - Details regarding the sale property, shares and investments during the year. Require date of purchase and cost base/purchase contracts and date of sale and sale proceeds/sale contracts for assets that were acquired after the 20 September 1985.
ATO AUDIT FOCUS:
Please note, the ATO is continuing its focus on capital gains on disposal of property and other assets that have not been declared or understated. Have all capital gains on disposals of CGT assets during the year been disclosed and correctly calculated? Did any other CGT events occur during the year which could result in a capital gain or loss?
- If you became an Australian resident throughout the financial year - On what date did you become an Australian resident?
- Copy of last years Notice of Assessment if Maclean Partners did not complete your tax return. If possible also provide a copy of your last year's return.
In the 2018-2019 year the ATO will focus compliance activities on:
- Individuals who fail to declare income or make incorrect claims for deductions and benefits
- Tax risks associated with the use of complex business structures
- Correct reporting of taxable income by wealthy individuals
- participation in tax planning schemes
In the 2018-2019 year the ATO will use new information sources to check correct reporting of:
- Private health insurance rebate claims
- Taxable government grants and payments
- Certain payments to contractors in the building and construction industry
- Payments received from ride-sharing and booking platforms,
- Bank account details to have eligible refunds banked directly into your account:
- Full name of the account is in (i.e. Mr Tim Robert Smith)
- BSB Number
- Account number
If a large refund is expected, the refund may be delayed as the ATO checks that the refund meets certain high risk criteria to detect any incorrect or fraudulent returns.
- In general - you must keep records for 5 years after 31 October, or the date return is lodged, whichever is later.
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