How to Prepare for Your Tax Return — A Practical Checklist

Income is the backbone of any individual tax return, and the more complete your income records are before the appointment, the faster lodgement becomes. Start by collecting every source of money that came in during the financial year, even where you think it might be small or already reported to the ATO.

The common income documents are: your PAYG income statement (or statements, if you had more than one employer) finalised through Single Touch Payroll; bank-interest summaries for every account that earned interest; dividend statements showing the franked and unfranked amounts and any franking credits attached; managed-fund or trust distribution statements (often issued as an annual tax statement); and any government payments such as JobSeeker or paid parental leave.

If you own a rental property, bring your rental income summary or the agent’s annual statement. If you trade under an ABN as a sole trader, gather your business income records and bank statements for the business account. Many of these items are pre-filled by the ATO once payers report them, but having your own copies lets us reconcile the pre-fill against reality rather than relying on it blindly.

Deductions reduce your taxable income, but only where they are directly connected to earning that income and you can substantiate them. As a general principle, you need a record of the expense and, in most cases, evidence that you incurred it for a work or income-producing purpose. The categories below are the ones most individuals and sole traders need to prepare.

• Work-related expenses: receipts for tools, equipment, union or professional fees, subscriptions, and protective clothing or uniforms that relate to your work.
• Working-from-home hours: a record of the hours you worked from home across the year, since the deduction generally depends on a defensible hours figure and the method you choose.
• Motor vehicle: a logbook or a reasonable record of work-related kilometres, plus running-cost records if you use the logbook method.
• Donations: receipts for gifts to deductible gift recipients.
• Self-education: course fees, textbooks and travel where the study relates to your current income-earning work.
• Income-protection insurance: premium statements, noting that the deductibility of insurance depends on the policy type and your circumstances.

Whether a particular expense is deductible, and to what extent, depends on your circumstances and the relevant rules. Bring more than you think you need — it is easier to set aside an item that does not qualify than to reconstruct a missing record after the fact.

Several details that are not income or deductions still shape the final outcome of your return, and they are easy to overlook. Pulling them together before the appointment avoids a second round of questions.

Bring your private-health insurance statement if you held cover during the year. It feeds the private-health rebate and helps determine whether the Medicare levy surcharge applies. If you did not hold hospital cover and your income is above the relevant threshold, the surcharge may apply, so the statement matters either way.

Note your HECS/HELP balance if you have a study or training support loan, since compulsory repayments are calculated against your income. Have your spouse’s details ready — name, date of birth and taxable income — because several offsets and the private-health and Medicare calculations are assessed on a family basis. Finally, confirm your Medicare position, including any reduction or exemption you may be entitled to. Whether any offset, levy or threshold applies generally depends on your circumstances and the relevant rules.

Some situations add a schedule to your return and benefit from a little extra preparation. If any of the following apply, gather the relevant records before the appointment and let us know in advance so we can scope the work properly.

If you own an investment property, you will need the full year of rental income and expenses — interest, rates, insurance, repairs, property-management fees and any depreciation schedule. Our rental property tax service covers how those items are treated and where the line between a repair and an improvement sits.

If you trade under an ABN, your business income and expenses flow through a business schedule. The sole trader tax return service explains what a sole trader needs to bring, and our sole trader tax deductions guide walks through the common claims.

If you sold shares, property, crypto or another asset during the year, you may have a capital gains tax event to report. Bring the purchase and sale records, dates and associated costs. Whether a gain is assessable, and how any discount or exemption applies, depends on your circumstances and the relevant rules — our capital gains tax service covers the calculation. For the core return itself, see our individual tax return service, and explore the broader accounting services for trusts, companies and partnerships.

Most return delays come not from the obvious documents but from items that slip the mind because they felt minor at the time. A quick mental walk through the year usually surfaces them.

• Prior-year carry-forward items: capital losses, prior-year losses or unused concessional super amounts that can affect this year’s position.
• New accounts opened during the year: a savings account or term deposit that earned a small amount of interest is still assessable income.
• Side income: earnings from a second job, freelance work, ride-share or delivery driving, tutoring, or income earned through online platforms.
• Crypto and digital assets: buying, selling, swapping or earning cryptocurrency can trigger a capital gains tax event or assessable income, depending on the activity.
• Bank accounts you closed: interest earned before closure still needs to be reported.

None of these is unusual, and none of them is a problem if it is raised early. Whether a particular item is assessable or deductible generally depends on your circumstances and the relevant rules, which is exactly what the scoping conversation is designed to work through.

The appointment itself is a structured conversation rather than a form-filling exercise. We confirm your identity, review your income documents and the ATO pre-fill, work through your deductions and any rental, business or capital-gains matters, and identify anything that needs a follow-up record. Where a figure is uncertain, we note it and tell you what evidence would resolve it.

Lodgement through a registered tax agent works differently from lodging yourself. Generally, individuals who self-lodge have a due date of 31 October. When you lodge through a registered tax agent and are on their lodgement program, the due date is usually extended — often well into the following year — provided you are registered before the relevant date and your prior returns are up to date. The extended date depends on your lodgement history and circumstances.

Eternity Group works on a fixed fee, scoped to your situation and quoted in writing before any work begins, so you know the cost up front. To understand the broader engagement, see how One Roof works, or book a scoping call to walk through your situation.

This guide is general information only. It does not take into account your objectives, financial situation or needs, and it is not personal tax advice. Whether a particular item of income is assessable, a deduction is available, or an offset or threshold applies, generally depends on your circumstances and the relevant rules. Personal advice based on your situation is available through a scoping engagement with Eternity Group Accountants.