Kochie's top 5 ways to make tax time easier

Doing your taxes doesn’t have to be a headache. If you plan, understand your deductions, and get your papers together, filling in your return is easy.

1. GET ORGANISED
Get all your tax-related documents together. I’m talking about group certificates, bank and dividend statements, investment property accounts, receipts for tax-deductible work or education expenses, any travel logs and your health-fund details – keep it all organised in a folder for five years in case you’re ever audited.

2. CHASE RECEIPTS
Get all your tax-deductible receipts in order. Go back to whoever you’ve paid and see if they can provide a copy of the receipt. Bank and credit card statements showing details of purchases can now be used in some cases. If you have children, find receipts for textbooks, computers and home internet connections to take advantage of the Education Tax Refund.

3. OFFSET CAPITAL
Profits on selling shares or investment properties purchased after 1985 will be charged capital gains tax at your marginal tax rate, but losses made on these types of investments can be offset. So if you have made a big profit on one investment this financial year, consider selling some of your disasters – like shares that haven’t performed.

4. DELAY INCOME
Delay receiving income until next financial year if you’re likely to earn less in 2010-11 and will be on a lower marginal rate. If you have your own business you may want to hold off invoicing your clients until July.

5. TOP UP SUPER
Before-tax superannuation contributions reduce your
taxable income, so less money goes to the taxman and more goes to your super savings. After-tax contributions are also worthwhile because returns are taxed at a maximum of 15 per cent.

Top tip
To work out if you need to lodge a tax return, visit www.ato.gov.au