- The tax laws require you to have receipts relating to claims made in your return, otherwise they will not be deductible.
- The number one tip for maximising your deductions is to keep your receipts and records.
- Almost every available deduction from your income needs to be substantiated with written evidence.
- Tax agents are bound by strict legislative provisions as to what they can claim for you including the requirement for documentary evidence of your expenses – either work-related (travel, uniforms, tools etc), donations, medical or business expenses.
- It is equally important to keep your records of major capital purchases (eg cars, computers or other long-term assets) so that the correct depreciation can be calculated. Similarly, for assets subject to capital gains tax, accurate records including contracts for purchase and sale, will enable ITP to minimise the tax payable.
- All receipts should be kept for five years after the lodgement date of the relevant return.
- ITP can help a lot with the best method of claiming deductions but it is up to you to keep the basic information.
View our handy tax checklist