Workers suffering from the cost of living crisis are hoping for a little financial support from the Australian Taxation Office as millions of them face the task of filing their 2024 tax returns.

It may seem premature to start planning next year’s taxes, but if you want to get the best possible tax refund next year, you need to start the prep work now.

Here are H&R Block’s top tips for planning to maximize returns next year.

Keep track of your expenses

Set up a system to track all of your workplace expenses.

If you spend money on anything as part of your work, ask for a receipt and keep it.

Even if you are not sure whether the tax is deductible, if you at least have the documentation, you can seek advice from your accountant when it comes time to file your tax return.

RELATED

If you close the fiscal year with organized receipts, invoices and other documents, you are already at an advantage.

Instead of keeping paper copies of everything, take photos of receipts, etc. and save them on your phone.

There are apps that allow you to store all your data in one electronic location.

The ATO accepts electronic copies, so you don’t have to keep paper versions, which often fade anyway.

Some apps allow you to download information saved throughout the year directly into your tax return or email it to your tax preparer, which can save you valuable time and effort.

Keep logbooks and diaries

Do you drive your car for work?

With the logbook procedure, you must keep a diary for at least 12 weeks without interruption and document your work-related journeys.

Based on this, you can then determine a business use percentage that you can apply to all your car expenses throughout the year.

The story continues

If you don’t already keep a logbook (these are valid for five years), consider starting one soon.

If you calculate car expenses using the other method—the standard cents-per-mile rate—be sure to record all of your work trips throughout the year so you have an accurate mileage number to apply the rate to when you file your taxes.

If you work from home, you must keep a diary throughout the year (if you use the 67 cent per hour fixed rate method) to record your home working hours.

If you don’t have a diary, copies of timesheets or duty rosters are sufficient.

Alternatively, if you use the actual method to calculate your work-from-home deductions, you can keep a four-week diary recording how much you used your appliances, home appliances, phone and internet for work purposes during that period.

You can then apply that percentage to the entire year. You don’t need to prepare this diary now (any four-week period will do), but put it on your to-do list at some point this tax year.

An accountant is not only responsible for tax time

Many people go to their tax advisor once a year when they do their tax return.

If you have tax problems during the year, don’t wait until your tax return is due to resolve them.

Contact your accountant throughout the year for help, advice and planning on tax matters.

If your tax affairs can be made more tax efficient (for example, if you are looking to start a business and want to know how), speaking to an accountant early on can simplify the process and save you taxes right from the start.