Date issued: 26 May 2008

Taxpayers could be missing out on money they are entitled to claim when lodging their tax returns, according to CPA Australia.

With the end of the financial year looming, CPA Australia is encouraging the 14 million individual Australians that will lodge income tax returns for the current financial year to be vigilant in identifying what they are able to claim.

Knowing what to claim can be difficult for many people as the taxation system can be daunting and difficult to understand. To help taxpayers claim what is rightfully theirs, CPA Australia has produced Tax Time Handy Hints which provides easy to understand advice and information on how to maximise tax deductions, offsets and other entitlements.

Knowing what to claim is essential to lodging a good income tax return and getting a deduction for relevant costs and expenses that have been incurred throughout the financial year. Some of the handy hints that taxpayers should consider when preparing their tax return include:

Claiming all work-related expenses
Take the time to find out what work-related expenses you can claim. While up to $300 of work-related expenses can be claimed without receipts, the claims must be for items necessary for your work and you must have incurred the expenditure.

Consider making tax effective superannuation contributions
Following recent changes, a self-employed taxpayer will be able to claim all their contributions to a complying superannuation fund as fully tax deductible up to age 75. Low-income earners may also be able to access the government co-contribution where the government makes a contribution of $1.50 for every dollar of personal contributions made by eligible taxpayers.

Reviewing your salary package
If your employer offers salary packaging, this can be an effective way to obtain tax savings, particularly if you are on the top marginal tax rate. Some of the most common and tax-effective items that can be salary packaged include superannuation and motor vehicles.

CPA Australia President, Alex Malley, said that every extra dollar that taxpayers can successfully claim will help them cope with the rises in living costs each year.

'One way that individuals and families can boost their income is by making sure that they check what they are entitled to claim. Tax Time Handy Hints will help taxpayers to prepare their tax returns by providing easy to understand information and advice and reduce confusion about what they can claim.

'Taxpayers should also consider the changes in taxation policy announced in the recent budget to help prepare their tax returns for this financial year and to help them plan and organise their finances for the next financial year,' Mr Malley said.

Further information

• read Tax time handy hints 2008
• visit the ATO website

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