Here are some useful tips for managing your taxes during the year. There are also some great templates that we have created online to help you out with both tax time and also organising your budgets during the year – have a look at our pre-tax preparation worksheet, holiday budget planner and also a worksheet to help you work out how much budget each of your children will need each semester.

*Establish a reliable filing system
Instead of stuffing receipts into a shoebox, establish a filing system that is alphabetized or colour-coded. File your receipts using headings such as ‘bank statements’, ‘travel receipts’, ‘magazine subscriptions’, ‘utilities’, or ‘car costs’, and keep them safe for at least five years.

*Record keeping
Use an Excel spreadsheet or an account ledger to keep track of your income and expenses. Our easy-to-use template is a perfect starting point.

*Keep logbooks and diaries
Keep logbooks documenting work-related travel expenses and car usage/mileage for at least one month per year, as you can claim a percentage of these expenses as tax deductions.

*Don’t procrastinate
Get in the habit of organising your receipts and updating your spreadsheets or ledgers at least once per quarter. Procrastination can be expensive – if you file your tax return more than four months late, you’ll be liable for fines of up to $2750.

*Consider an accountant or bookkeeper
Accountants help prepare and lodge your annual tax return, and also advise on the tax benefits of investments in property, shares, superannuation and managed funds. All accountancy fees are tax deductible.

*Get educated
The Australian Tax Office website provides information about preparing your tax return and tax rebates, plus applications such as the Personal Tax Record Keeper and eTax can be downloaded at www.ato.gov.au.

Other websites offer tax tips such as claiming depreciation on the value of home computers, increasing superannuation payments, or claiming tax deductions to the value of $300 without receipts – advice that can equate to hundreds of dollars in tax savings.

*Keep everything!
A hairdresser can claim scissors, journalists can claim subscription TV, and carpenters can claim work boots. To understand your entitlements, visit www.ato.gov.au - and don’t forget to collect ALL your receipts and bank statements throughout the year.

*Use an online tax calculator
To estimate how much tax you’re likely to owe, use an income tax calculator, which are readily available on the internet. Simply enter the value of your earnings, and the calculator will compute the tax on income.

Planning your tax well in advance of the annual 31 October deadline will enable you to invest your money more wisely and minimize your tax debt. The sooner you start preparing your next tax return, the easier it will be.

Need more keeping your budgets organised during the year? Check out our grocery budget planner.