Ready to lodge your tax return? Not sure where to start? It can get a little complicated at times, especially if you hold multiple assets and investments, but armed with the right knowledge, the process of getting your taxes sorted can be more straightforward than you think.
Our comprehensive tax return checklist is designed for investors in Australia who want to get a handle on their EOFY admin. Let us walk through the five key steps you need to follow so you can prepare your tax for FY23–24 and get back to doing what you do best!
1. Know when your tax return is due for FY23–24
Save the date! The deadline for lodging your tax return in Australia is very clear, and if you miss it, you could be liable for penalties from the Australian Taxation Office (ATO). For individuals in Australia lodging their own forms, the tax return due date for FY23–24 is 31 October 2024. If you prefer to have a registered tax agent take care of all the paperwork, they may have special lodgment schedules and can lodge returns for clients later than 31 October – often as far ahead as 15 May 2025.
Be aware that the ATO can – and does – apply penalties for anyone who fails to lodge on time.
2. Make a list of all your investments
Drawing up a comprehensive list of all your investments from the 2023–24 financial year is a good idea to ensure you do not miss something important – which is liable to happen during the time-consuming tax return process.
This step is highly recommended for those who invest across multiple platforms or hold a diverse portfolio made up of several asset classes. Take your time gathering information about your investments, including shares, managed funds, ETFs, rental properties and any other assets that generate income for you.
If you have an eToro account and would like to see your current investments, dividends, open and closed trades and more, your eToro Account Statement provides a good overview of your investing activity.
3. Gather your financial information
As an investor, you need to gather specific financial information about your investments for your tax return. At eToro, we issue every user with their own eToro Tax Report. This document is generated based on your previous annual trading activity on the eToro platform and is structured in accordance with Australian tax guidelines.
Investors in Australia should be aware that capital gains and losses, including those related to cryptocurrencies, are a key focus for the ATO this financial year – with the government agency looking to target individuals who do not accurately declare their crypto gains and losses. To ensure compliance, you must accurately report your investment income and any capital gains or losses you have incurred.
4. Complete your tax return
Once you have gathered all the necessary paperwork, you can start completing your FY23–24 tax return. Investors have a few different options for lodging your tax return. If you have the time and patience, you can choose to do it yourself using either a paper form or through the ATO’s online lodgment portal. Alternatively, you can hire a registered tax agent to take care of everything for you, which may assist you if you are new to submitting tax returns as an investor or have complicated assets.
Remember, the due date for lodging your tax return for FY23–24 is 31 October 2024. If you decide to use a tax agent, you will need to engage them well before the due date to ensure they can take you on as a client.
5. Keep your records on hand
After lodging your tax return, the work is not quite finished! The ATO requires you to maintain good record-keeping practices for at least five years, including storing all relevant records and documents relating to your investments. These records might include:
- Purchase and sale documents
- Dividend statements
- Rental income
- Expense records
- Any other financial documentation related to your investments.
In the event of an audit, having these records stored somewhere you can easily access them will make the whole process less stressful. A good idea is to digitally store your files in the cloud so you can access them from any device or keep them highly secured in a physical container where they can be kept safe for at least five years.
Hopefully, our helpful tax return checklist means you can more easily prepare and lodge your tax for the 2022–23 financial year. Keep an eye on any further updates from the ATO and speak to a professional tax advisor if you have any concerns about the complexity of your financial situation.
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This communication is general information and education purposes only and should not be taken as financial product advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial product. It has been prepared without taking your objectives, financial situation or needs into account. Any references to past performance and future indications are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.