Firing the starting pistol on your tax return too quickly means you could end up shooting yourself in the foot

There’s a misconception that lodging early means you’ll receive your refund first, but it’s not as simple as that.

It’s common for people who lodge early to end up having to amend their returns later anyway, so it’s best to wait.

It will save you in the long run. Another common mistake people make is not giving enough thought to how their circumstances have changed over the past 12 months.

Some people go into autopilot when they do their tax returns.

They cut and paste from their last return and fail to consider any changes to their personal circumstances.

Turn off the autopilot and take time to seriously consider what’s different about your expenses this year and think about what you could claim - this is the advice from CPA Australia.

Maybe you travelled more for work and were not reimbursed by your employer for meals or other travel essentials.

Or maybe you started a new job where you had to buy tools, subscriptions, or pay for training and security clearances, for example.

CPA Australia encourages taxpayers to consider seeking professional advice with their returns, especially if they have complex finances and earning activities such as owning rental properties and crypto assets.

This cost is itself tax deductible.

CPA Australia’s tips to help complete your tax return are:

1. Out of pocket? Any out-of-pocket work-related expenses could be tax deductible, but you’ll need evidence in case you are asked in an audit. Think about what you’ve had to purchase for work. Check your bank statements.

2. Find the evidence. Hopefully your receipts aren’t down the back of the couch, but they might be in your emails and phone apps. Or maybe the junk drawer?

3. Consider your working from home expenses. You may be able to claim expenses such as internet costs and printing ink and paper, so long as they can be legitimately attributed to work use.

4. Methods matter. Which work-from home expense type makes most sense for you (fixed rate or actual cost method)? If you’ve been good at keeping records throughout the year, the actual cost method may be more beneficial.

5. Using your car for work? For vehicle expenses, you must be able to identify and justify the percentage that you are claiming as business use. To claim accurately, you will need to use a logbook or diary to show private versus business travel.