Tax season is here, and while you may be eager to file your individual tax return, it’s crucial to exercise patience.

The Australian Taxation Office (ATO) needs time to collect information for the last financial year. Therefore, it is recommended to hold off preparing your returns until the end of July at the earliest.

Waiting allows the ATO to pre-fill your tax return with data from employers, banks, and government agencies. This saves time and ensures accuracy in reporting your income, deductions, and other financial details.

Delaying also gives you the opportunity to gather all necessary documents, such as payment summaries, bank statements, and receipts for deductions.

This comprehensive approach minimises errors and ensures you claim all eligible deductions, maximising potential refunds or reducing tax liabilities.

The ATO has identified rental properties as an area prone to errors and non-compliance. Through data-matching capabilities, they cross-reference information provided by individuals with third-party data. Any discrepancies or omissions in rental income reporting can trigger ATO audits or reviews.

To navigate the ATO’s focus on rental properties, individuals should pay close attention to the following:

Examples of supporting documenation to prepare: