Top tips: How to maximise your tax return

AN accountant with 40 years in the finance sector has revealed his top tips for people to maximise their tax return for 2020.

BANG FOR BUCK: Steve Marsten from UHY Haines Norton’s Gladstone branch said there were several ways people could maximise their tax returns this year.

AN experienced Gladstone accountant has outlined his top tips for maximising your tax return this end of financial year.

Steve Marsten is the co-director of chartered accountants UHY Haines Norton’s Gladstone branch, having spent 40 years in the finance sector.

Mr Marsten said the biggest tips he could give to help your money stretch further in 2020 centred around home offices.

“Because of COVID-19 the home office expenses are going to be a bigger claim than normal,” he said.

“The benefit of that is the government has recognised that and increased the claim from 52c an hour to 80c from March 1.

“That type of thing takes into account your phone, internet, depreciation on your office furniture and equipment, electricity and gas.

“What you have to be careful of though is that it doesn’t include coffee, tea, milk or educating your children while you are at home, so be careful with that.”

Mr Marsten said now was the time to take control of your cash.

“This is the month to be setting up budgeting or cashflow software that you can trace where your money goes,” he said.

“Do not leave it go until August, September, October it is July which is the month that sort of thing needs to be set up going forward.”

Mr Marsten said the biggest issue the accounting firm came across was when people lodged their own tax return claims.

“They encounter problems and then come and see us, the biggest issue they usually have is that they tend to over-claim,” he said.

“The Australian Taxation Office nowadays has such precise algorithms, which they use on tax agents too, that they can really select anyone outside of that algorithmic bell curve to be reviewed.”

Mr Marsten said the first thing people must ensure when they were looking to maximise their tax return was that their account was credible.

“If they are not CBA or CA driven or qualified they do not often get as good a background in the theory behind what tax is and what tax deductions are deductible,” he said.

Mr Marsten could not understate the importance of submitting your tax return claim in an orderly manner after thorough investigation.

“We actually collect certain data as our work paper file, in the event there is a claim by the Australian Taxation Office, then we have a work paper file which stands behind the actual return,” he said.

“Obviously if you are paying for a $90 tax return you are probably not going to get that.”

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