Unlocking the Secrets of DIY Taxes: Save Money and Time

Welcome, to the Podcast! Our newsletter made easy! Please note, this podcast features AI-generated voices for your hosts, Mia Taylor and Leo Baker, bringing you expert insights from owner, Ben De Rosa, at Aevum Accounting. Each week, we're here to help you confidently navigate the ins and outs of Australian tax – whether it's for your individual finances, or the complexities of your business. We'll cut through the jargon to give you strategies for compliance, smart planning, and that ultimate peace of mind. So, if you're looking to understand your obligations, maximize your financial position, or simply gain clarity on your money matters, you're in the right place. Let's get started with our review of the week! Tayla Dodd says "I’ve been working with Ben at Aevum Accounting for my tax returns and I couldn’t be happier with the service. Ben is knowledgeable, efficient and incredibly thorough. He takes the time to explain everything clearly, making sure I understand all aspects of my tax situation and feel confident in the process. I highly recommend Ben for anyone looking for a trustworthy and professional accountant." Thank you for the amazing feedback Tayla we love hearing from our clients and a positive review gets our podcast started on the right foot. Over to you Mia. Here's a shocking statistic - over 70% of Australians are terrified of doing their own taxes, yet for most people it's actually simpler than cooking a decent meal. You know what's fascinating about that fear? It's costing people real money in unnecessary accounting fees. Let me break this down - if you're earning a regular salary with some basic deductions, you're probably throwing away hundreds of dollars getting someone else to do what you could handle yourself. Though I imagine there's a clear line between who should and shouldn't attempt their own taxes? Well, here's the interesting part - it's really about the complexity of your financial life, not your intelligence or capability. If you're dealing with basic employment income and straightforward deductions, the modern tax systems are specifically designed for you. Hmm... so what exactly makes someone's tax situation too complex for DIY? Think of it like this - if you've got lots of deductions, investment properties, business structures, or fancy financial instruments, that's when you need professional help. But for about 60% of taxpayers, their situation is actually pretty straightforward. So what's the first step for someone wanting to tackle their own taxes? Alright, Step One, and this is crucial: Gather your documents! Think of it as your tax treasure hunt. You need your Income Statement or PAYG Payment Summary from your employer – and for most people now, thanks to Single Touch Payroll, this will show up in your myGov as "Tax Ready." everything starts with what they call "Tax Ready" status. Your employer reports directly to the tax office now, and most of your income information automatically pre-fills in the system. Oh right - that must be why the processing time has dropped from six weeks to just fourteen days for most returns? Exactly that - and here's something even more interesting: the tax office's data matching has become so sophisticated that they can track everything from your cryptocurrency trades to your side hustle income on digital platforms. That's actually kind of scary when you think about it - like Big Brother watching your wallet. Well, here's the thing - it's actually protecting honest taxpayers. The system catches the real cheaters while making it easier for regular folks to do the right thing. And get this - the tax office's own app lets you photograph and categorize receipts instantly. That leads us to Step Two: Organise your deductions! This is where diligent record-keeping really pays off. For work-related expenses, think about anything you spent money on to earn your income. Common ones are: Work-related car expenses: If you use your car for work, not just commuting. Uniforms and laundry: If you have a specific uniform you wash. Self-education expenses: If you undertook courses directly related to your current job. Home office expenses: Now, Leo, this is interesting for many. For me, I work primarily from my office in Perth, but sometimes I do work from my home in Cottesloe. For listeners who have a similar hybrid setup or work from home sometimes, you'll need to keep records of the hours you work from home to claim a portion of expenses like electricity, internet, and stationery. The ATO has different methods for this, so make sure you choose the one that suits your record-keeping best. then you also have deductions like Tools, equipment, subscriptions: Anything you needed to do your job. Speaking of receipts, what are some of the most commonly missed deductions? Oh, this is where it gets interesting - people often overlook things like home office expenses, which can include a portion of your internet and electricity bills. And here's a surprising one - many don't realize they can claim professional development courses related to their current job. But I've heard some pretty wild stories about people trying to claim ridiculous things... You wouldn't believe some of these - like someone who tried to claim their entire streaming service subscription because they occasionally watched work-related documentaries. The tax office actually has a whole database of creative attempts at deductions. That must keep their auditors entertained! What's the most important thing for people to remember? The tax office actually prefers when people do their own returns because they tend to be more conservative with claims. That's really counterintuitive - you'd think professional help would mean fewer mistakes. Well, here's another surprising fact - for basic returns, the error rate is actually lower with self-lodged returns. The system has so many built-in checks and balances now that it's pretty hard to make serious mistakes if you're honest about your situation. Step Three: Access myTax via your MyGov account. This is where the magic happens! You'll log in to your MyGov account, link it to the ATO if you haven't already, and then navigate to myTax. The fantastic thing about myTax is that much of your income information, like salary and bank interest, often pre-fills directly from the ATO's data-matching, once it’s "Tax Ready." It makes the process much quicker and reduces errors. Oh, the pre-fill is a game changer! It’s like the ATO doing half the work for you. But what do people need to pay special attention to once they're in myTax? Great point. Step Four: Review and add any missing information or deductions. Don't just assume the pre-fill is perfect. Always double-check! You'll need to manually add in all those deductions you've meticulously organised, as well as any income sources that might not have pre-filled, like if you did some freelancing on the side, or sold some shares. This is also where you ensure details like your bank account for your refund are correct – you'd be surprised how many people get that wrong! And for many of our listeners, you might find some really specific deductions that apply to your job. That's why we’ve built an ever-growing list of dedicated tax guides on our website for different occupations – we have comprehensive guides for Fire Fighters, Medical Professionals, Nurses and Midwives, Paramedics, Police Officers & Detectives, and Teachers. So, if you're in one of those roles, check out our website for tailored insights! Wow, that's such a valuable resource! Tailored advice is key. Okay, and then, once you've reviewed everything, is it just hit "submit"? Almost! Step Five: Double-check everything and lodge! Before you hit that final button, take a deep breath and go through every section one last time. Is all income declared? Are all deductions legitimate and substantiated? Have you answered all the relevant questions? Once you're confident, hit lodge. You'll usually get your refund within two weeks, which is pretty speedy! So what's your bottom line advice for someone considering DIY taxes? Look at your financial situation objectively - if you're dealing with basic employment income and straightforward deductions, give it a try. The potential savings are significant - we're talking about $400-800 per year in accounting fees for many people. And I suppose there's always the option to go back to using a professional if it doesn't work out? That's right - and here's the real value: even if you decide to use a professional later, understanding your own tax situation makes you a more informed client. You'll know what questions to ask and what deductions you might be entitled to. A tax professionals fees charged to you are also tax deductible in the year you pay them. Also you might choose to see a tax professional for the first year to see what extra value they can add. They might add more value than $400 - $800 which makes it a worthy investment. That's actually a really empowering way to look at it. And that's really what this is all about - taking control of your financial life. The tax office has invested millions in making their systems user-friendly because they want people to engage directly with their tax obligations. Well, this certainly takes some of the mystery out of tax season. And remember - knowledge really is power when it comes to your finances. The more you understand about your tax situation, the better positioned you are to make smart financial decisions throughout the year, not just at tax time. And that brings us to the end of another episode! We hope today's discussion has provided you with valuable insights and helps you navigate your financial world with greater confidence. Before we go, a quick but important reminder: The information and strategies shared on this podcast are for general informational purposes only and do not constitute specific tax or financial advice. Everyone's situation is unique. Tax laws are complex, and constantly evolving. For personalized advice tailored to your specific individual or business needs, we always recommend consulting with a qualified professional. You can connect with our team at Aevum Accounting – visit our website to learn more about our services, including detailed tax guides for various occupations, and how we can support your financial journey.