Information For Tax Returns: How To Prepare For 2024 End Of Financial Year ( EOFY 2024 )
By Kaleem UlahJune 12, 2020|6 min read
It’s that time of year again - it’s 2024 tax time! For many people, this is an exciting time of year when we get back some of that hard-earned cash that was taken out of every fortnightly pay. For others, this is just about the least fun time of year, when not only do we have to muddle our way through complex ATO forms, but we may even end up with a tax bill. The Kalculators are here to make the tax returns process much easier. This article will inform you what information is required to file a tax return. Plus, we’ll share our tips for preparing your 2024 EOFY tax return to be quick, easy, and profitable.
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Australian tax rates for 2024
Beginning with the 2019-20 fiscal year and continuing until the 2023-24 fiscal year, the tax brackets have not changed much. To understand the ATO tax rate in 2024, we have illustrated the important details in the following table. For the current fiscal year, the tax brackets that apply to you are as follows, based on your income:
| Taxable income | Tax on This Income | Marginal Tax Rate |
|---|---|---|
| $0–$18,200 | Nil | 0% |
| $18,201–$45,000 | 19c for each $1 over $18,200 | 19% |
| $45,001–$120,000 | $5,092 plus 32.5c for each $1 over $45,000 | 32.5% |
| $120,001 – $180,000 | $29,467 plus 37c for each $1 over $120,000 | 37% |
| $180,001 and over | $51,667 plus 45c for each $1 over $180,000 | 45% |
This means that an Australian resident for the whole year who made $40,000 a year would be taxed about $4,142.00; an Australian resident for the whole year who made $80,000 would be taxed about $16,467.00; and an employee for the whole year who made $100,000 would be taxed about $22,967.00. Remember that the above rates do not include the 2% Medicare levy.
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Tips for your 2024 Australian tax return
In preparation for your 2024 Australian tax return, keep the following tips in mind.
1. Give your money to charity early
If you would like to give money to causes and groups you support and maximise your tax benefits, do it before the end of the year to get the biggest tax break for 2024. Most people can deduct up to 50% of their taxable income from the amount they give to charity. Before you give money to anyone, check the ATO's tax-exempt group database to ensure your donation will be tax-deductible. All legitimate non-profits and groups will also have a tax ID number that shows they don't have to pay taxes.2. Have proof of everything you buy
We've all seen those annoying receipts, but you need to keep them if you buy something for work, even if it's just for fun. Another important thing to note is that you don't need receipts for work-related costs that don't add up to $300. You may not need a ticket when you spend up to $300, but you must have spent that money on something related to your job; you can't just claim $300.3. Set up a receipt system
There are other people like you who hide their records in a drawer or a big envelope. Still, there's a better way. It's easy to lose receipts, so you need to set up a method. Also, the ink can fade over time, leaving the paper blank! One of the best ways to save money on taxes is to keep track of and file your records. From now on, try to keep every ticket that proves something and talk to your accountant to find out what you can claim. Luckily, apps can help you scan receipts and save them digitally if you'd rather not keep them safe.4. Real estate investments
The ATO says that nine out of ten people who invest in rental properties make "mistakes" on their tax returns. These mistakes usually have to do with interest payments. A senior ATO official recently said, "We see people refinancing their loans and then using the refinancing amounts for personal expenses, like buying a car or going on vacation. We tell them that interest needs to be split up for the personal expense."
The ATO is also looking into people who rent out their homes on Airbnb but don't report their income or think they might have to pay capital gains tax when they sell the property where they hired out a room. This can be hard for ADF members, so you should talk to an expert if you're unsure about your tax obligations.
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Kaleem Ulah
Kaleem is CEO & Author at "The Kalculators". With more than 10 years of experience in financial services, he built Kalculators to transform your financial challenges into strategic triumphs!
