How to beat the ATO at their own game
How to beat the ATO at their own game
The tax individuals pay is a significant contribution to Australia’s economic fuel. In fact, 41.9% of total revenue collected in 2020 ($231.2b) was collected from individual taxpayers (which is 2.4 times more than businesses). This excludes property taxes, taxes on insurance, taxes on motor vehicles taxes on capital transactions, GST and so on…
So, what’s the problem?
The problem is, most people remain unaware of their financial position and wait until the end of the financial year to start thinking about their tax return, which gives the ATO a really unfair advantage. So how do we beat the ATO at their own game?
Provide the ATO with all the tiny details
First of all, an accurate and complete tax return lodgment is essential. Unless the ATO has all the information of your income and expenses it’s impossible to correctly determine your constitutional economic responsibility. In other words, you won’t be able to get your highest legal refund at the end of the financial year.
Whether you’re an employee, sole-trader, or property investor, providing the ATO with all the tiny details of your income and expenses can be a real headache – and who has time for that?
Fortunately, we now have access to cloud-based software like TaxTank which was custom built for individuals. Having all your tax information in one place saves heaps of time and makes lodging your tax return super easy.
Keep your receipts and documents safe
Have you ever tried to find all your records for the past year in a single day? Just because it’s a common experience doesn’t mean it’s necessary!
Unsurprisingly, the ATO has advised that the number one cause leading to the dis-allowance of rental property claims continues to be where taxpayers are unable to produce receipts or other documentation to support a claim
To avoid an audit adjustment, the ATO requires written proof of all the expenses you intend to claim a tax deduction for. Since you’re legally required to keep this information for 5 years, you can avoid clutter in your home office, as well as expensive ATO audit issues by securely storing your receipts and other documents electronically.
The good news, there’s now an easy way to save all your work-related receipts throughout the year, so you can get every deduction you deserve. Plus, you can store all your other documents in the same place, like employment contracts, insurance policies and even your will,
TaxTank is unique because it not only enables you to attach your receipts to the corresponding transactions and access your important documents quickly and easily, but you can also share documents with your accountant without emails – even documents from years ago for things like capital gains. Talk about a time and money saver!
Know your real-time tax position all year round
One of the coolest things about using cloud computing to manage your tax, is that you can keep track of your estimated tax position in real-time, all year round.
The truth is, if you want to beat ATO at their own game, tax can’t be a once-a-year event. With live bank feeds and interactive reports that show your tax position on a daily basis, TaxTank lets you make informed decisions with ease.
This smart software also offers you personalised tips so you can feel in control of how much tax you pay. If you’re a property investor, for example, you want to make sure no opportunity is missed. TaxTank makes this possible with smart tax tools for managing your whole property portfolio, including your home and properties owned in trusts and companies. You’ll have a clear view of your debt, equity and cash position, and can even manage income from sites like Airbnb with complete confidence.
Become tax confident
Confidence is sexy, and the best way to beat the ATO at their own game is to feel confident in your financial decisions, and in your ability to use tax to your advantage.
TaxTank enables easy collaboration through instant messaging and access via invitation, so not only will you get the answers you need from your accounting team in real-time, but your accountant can also monitor your tax position and easily step in with expert advice.
It’s time to stop surrendering more of your hard-earned money to the government than is legally necessary, and put an end to your tax anxiety once and for all! With TaxTank on your side, you no longer need to wait until the End of Financial Year to find out whether you’re getting a scary tax bill or a big, fat juicy return.
TaxTank is finally here to fight back against ATO automation. We’re all about giving power back to the individual, so sign up for your free trial today and discover what it’s like to be in control how much tax you pay!