Mark Chapman, Director of Tax Communication at H&R Block, drops by the Flying Solo podcast to break down everything you need to know about end-of-financial-year preparation.
Find out everything from how to get your paperwork in order, to avoiding common mistakes, so you can make sure you’re not leaving any money on the table when it comes to deductions.
Mark offers practical advice on essential record keeping, explains which documents are a must-have, and even spots some tax traps and scams to watch for.
So grab your receipts (and maybe a coffee), and let’s get ready to tackle tax season together!
Key topics
1. Essential tax prep and record keeping
- Importance of keeping all income and expense records (receipts, invoices, etc.)
- Advice to update records regularly, ideally year-round, or as soon as possible before June 30
- Consequences of poor record keeping: missed deductions, higher accountant fees, and complex returns
2. Common deductions and maximising claims
- Home office: Options to claim using the fixed-rate method (70c/hour) or proportion of actual home expenses
- Additional deductions for items like business equipment, software, and subscriptions (e.g., Canva, Blinkist)
- Avoid double-dipping by not claiming the same expenses under multiple methods
3. Changes and updates for this Financial Year
- Instant Asset Write-Off available for eligible assets up to $20,000
- No other major changes to small business deduction rules this year
- Importance of following current rules and consulting with a tax professional
4. Business vs. personal expenses
- Need to apportion shared expenses between business and personal use, and substantiate claims
- Risks for company owners who mix personal withdrawals with business funds (Division 7A implications)
- Recommendation to seek professional advice to properly separate and track finances
5. Avoiding ATO pitfalls and audit risks
- Substantiation is key: receipts typically required (not just credit card statements) for most claims
- ATO is vigilant about double claims and personal/business expense separation
- Proper documentation reduces audit risk and ensures legitimate deductions are not missed
Timestamped overview
00:00 Start tax prep early
03:17 Complicated tax return challenges
06:46 Home business tax deduction tips
10:17 Home office tax claim guidelines
13:48 ATO compliance for sole traders
Listen now:
Presenter: Cec Busby
Sound: Matt Jackson
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