What Tax Changes Should You Tell Your Tax Agent About?

Life rarely stays the same from one financial year to the next. You might change jobs, start earning rental income, buy a property, launch a side business or take on new family responsibilities. These changes can affect your tax return, the deductions you can claim and the tax obligations you need to manage.

Telling your Perth tax agent about important financial and personal changes early helps them assess your circumstances accurately, identify relevant tax considerations and reduce the risk of errors or missed information.

You do not need to understand every tax rule yourself. You simply need to share what has changed, provide the relevant records and ask questions when something is unclear.

Your tax agent can then determine which changes matter for your individual circumstances.

Why Your Tax Agent Needs to Know About Changes in Your Life

Your tax return should reflect your actual financial circumstances for the relevant income year, not simply repeat last year’s figures.

Even a seemingly minor change can affect how income is reported, whether a deduction is available or what supporting information your tax agent needs.

For example, moving from salaried employment to contracting may change how you report income and manage business expenses. Buying an investment property adds rental income and potential deductions, while selling an asset may trigger a capital gains tax assessment.

Sharing these developments gives your tax agent an opportunity to assess their tax implications rather than discover important details at lodgement time.

1. Changes to Your Employment and Income

Tell your Perth tax agent whenever your employment or income sources change. Different payment arrangements, additional jobs and new income streams can affect your tax return.

Important changes include:

• Starting or leaving a job: Provide details of your employers and relevant income statements.
• Changing from employee to contractor: Explain how you are paid and whether you operate as a sole trader or through another business structure.
• Taking on a second job: Disclose income from all employers so your tax position can be assessed correctly.
• Receiving bonuses or commissions: Share details of additional employment payments.
• Working overseas or relocating to Australia: Discuss your residency circumstances and any overseas income, as these may affect your Australian tax obligations.
• Receiving government payments: Provide information about relevant taxable payments and any associated statements.

Do not assume your tax agent can see every detail of your financial situation automatically.

Although some information is pre-filled through ATO systems, you should check it and disclose any missing or incorrect information.

2. Starting a Side Hustle or Making Changes to Your Business

A side hustle can start as a way to earn extra money and gradually become a substantial income stream. Whether you freelance, sell products online, provide consulting services or operate a small business, tell your tax agent when your activities begin or change.

They can assess whether your activities constitute a business or another type of income-producing arrangement and explain the relevant reporting requirements.

Keep your tax agent informed about:

• Starting or closing a business.
• Registering for or cancelling GST.
• Changes in business structure or ownership.
• Hiring employees or engaging contractors.
• Purchasing equipment, vehicles or other business assets.
• Taking out business loans or making significant capital investments.
• Changes to business income, operating expenses or record-keeping systems.

Business expenses are not automatically deductible simply because you pay for them through a business bank account.

Generally, an expense must relate to earning assessable income, private use must be excluded, and appropriate records must support the claim. See the Australian Government’s guidance on tax deductions.

If you are registered for GST or employ staff, changes may also affect your BAS, PAYG withholding and superannuation obligations.

Discuss these developments with your accountant or tax agent before deadlines become difficult to manage.

3. Buying, Selling or Renting Out Property

Property transactions can introduce tax considerations that are easy to overlook when you are focused on the purchase, sale or rental arrangements.

Tell your tax agent if you have:

• Purchased your first home or an investment property.
• Started renting out a property you previously occupied.
• Changed a property from rental use to personal use.
• Sold an investment property or other capital asset.
• Renovated a rental property or purchased major assets for it.
• Refinanced a property loan or changed how borrowed funds are used.

For an investment property, retain rental statements, loan documents, insurance costs, rates, property management fees and receipts for relevant repairs or improvements.

Your tax agent needs sufficient detail to distinguish potentially deductible expenses from capital costs and private expenditure.

Selling property can also require a capital gains tax assessment. The result depends on the circumstances, including how the property was used, the ownership period and applicable exemptions or concessions.

A practical tip: Tell your tax agent about a property transaction when it happens, rather than waiting until tax time.

This gives you more opportunity to retain purchase documents, sale contracts and expense records while they are readily available.

4. Changes to Investments and Other Income

Investment income can come from more than shares or managed funds. Bank interest, dividends, distributions, cryptocurrency transactions and certain overseas investments may also need consideration when preparing your tax return.

Inform your tax agent if you have:

• Bought or sold shares or managed fund investments.
• Received dividends or trust distributions.
• Sold, exchanged or otherwise disposed of cryptocurrency.
• Earned interest from additional bank accounts.
• Received foreign income or held overseas investments.
• Sold valuable assets that may trigger capital gains tax.

Keep transaction histories, annual tax statements, purchase records and sale confirmations. For cryptocurrency, retain transaction dates, values, fees and records of disposals or exchanges.

Your tax agent can review the information and determine how each transaction should be treated. Do not assume that a transaction is irrelevant simply because you did not transfer the proceeds into your everyday bank account.

5. Marriage, Separation and Other Family Changes

Changes at home can affect tax-related information and, in some cases, eligibility for particular offsets or government benefits.

Tell your tax agent if you have married, separated, divorced or experienced another significant change in your family circumstances. You should also mention changes involving dependent children or your responsibility for their care where relevant.

These details may help your tax agent assess matters such as:

• Eligibility for certain tax offsets or benefits.
• Private health insurance information and applicable tax adjustments.
• Family trust distributions or changes in asset ownership.
• Transfers or sales of jointly owned assets.
• Changes in financial arrangements following separation.

Not every family change affects your income tax return directly. Your tax agent can determine which details are relevant and whether additional records are required.

6. Changes to Work-Related Expenses and Deductions

Have you started working from home, purchased tools for a new role or travelled more frequently for work? Tell your tax agent about these changes and keep evidence of the expenses you incurred.

Potentially relevant expenses may include work-related equipment, eligible home office costs, professional memberships, work-related travel and certain training expenses. Eligibility depends on the nature of the expense and the applicable tax rules.

Before claiming a deduction, consider whether:

• You paid for the expense yourself.
• The expense relates directly to earning your income.
• Your employer reimbursed any part of the cost.
• You have records supporting the amount and work-related purpose.
• You have separated private use from work-related use where necessary.

A receipt alone may not establish that the full amount is deductible. Your tax agent may also need usage records, a work diary, a logbook or other evidence, depending on the claim.

For most work-related expense claims, retain supporting records for five years from the date you lodge your tax return, subject to the specific rules that apply.

Business and other records may have different retention requirements.

7. Superannuation, Insurance and Other Financial Arrangements

Changes to superannuation contributions, insurance arrangements and other financial commitments may also be worth discussing with your tax agent.

Let them know if you have made personal superannuation contributions, received relevant insurance payouts or changed arrangements involving income protection premiums.

Provide the relevant statements and contribution details so they can determine whether any tax treatment or reporting requirements apply.

For personal superannuation contributions, do not assume that making a payment automatically entitles you to a deduction. Eligibility requirements and, where applicable, notification requirements must be satisfied.

Likewise, insurance payments can receive different tax treatment depending on the type of policy and the reason for the payment. Share the relevant documentation rather than trying to classify the payment yourself.

8. Changes to Your Residency or Overseas Activities

If you have moved overseas, returned to Australia or started earning income from another country, speak with your tax agent about your circumstances.

Australian tax residency is determined by relevant legal tests and your individual circumstances. It is not determined solely by your citizenship or the number of days you spend in a particular country.

Your tax agent may need details about your travel dates, living arrangements, employment, overseas income and assets. These facts can help them assess residency, foreign income reporting and any relevant double taxation considerations.

Seek advice early if you expect to move overseas or begin working internationally.

Cross-border tax issues can involve more than one tax system, so keeping accurate records from the outset is particularly useful.

What Should You Prepare Before Meeting Your Perth Tax Agent?

You can make your appointment more productive by collecting the information your tax agent is likely to need. The exact documents depend on whether you are an employee, investor, property owner or business operator.

You may not need every item on this list. Ask your Perth tax agent which documents apply to your situation and whether they prefer digital copies or another format.

A Simple Habit That Can Make Tax Time Easier

You do not have to wait until the end of the financial year to organise your tax information. A few consistent habits can reduce the amount of follow-up work required when your return is prepared.

1. Record changes as they happen. Note new jobs, property purchases, business registrations and investment transactions.
2. Keep supporting documents together. Save receipts, invoices, statements and contracts in clearly labelled digital folders.
3. Separate business and personal finances. Where practical, use separate accounts and maintain clear records of mixed-use expenses.
4. Ask questions before making major decisions. Property sales, business restructures and significant investments may have tax consequences worth understanding in advance.
5. Review your information before lodgement. Check that all income sources, relevant transactions and personal details have been disclosed accurately.

Good preparation does not eliminate every tax complication, but it gives your Perth tax agent a clearer picture of your circumstances and helps support accurate reporting.

Frequently Asked Questions

When should I tell my tax agent about a change?

Tell your tax agent as soon as practical, particularly when the change involves a property transaction, a new business, overseas income or a significant investment. Early communication gives you more time to gather documents and understand any relevant obligations.

Can I use the same tax information as last year?

You can use last year’s return as a reference, but you should not assume that your income, deductions or eligibility remain unchanged. Review your current circumstances and provide updated information for the relevant income year.

What happens if I forget to tell my tax agent about income?

Contact your tax agent promptly if you discover that income or another relevant detail was omitted. They can assess whether your return needs to be amended and explain the appropriate next steps. The outcome depends on the circumstances and the applicable rules.

Do I need to tell my tax agent about small investment transactions?

Yes, disclose investment transactions even if the amounts seem small or you believe they may not be taxable. Your tax agent can determine whether the transactions need to be reported and what records are required.

Can a Perth tax agent help with both personal and business tax?

A suitably qualified and registered Perth tax agent can assist with relevant personal and business tax matters within their scope of services. Depending on your circumstances, support may include income tax returns, BAS, GST, PAYG and related compliance requirements.

Keep Your Tax Affairs Aligned With Your Changing Circumstances

At Perth Tax People, we understand that tax can become complicated when your work, family, investments or business arrangements change.

Our CPA-led practice brings together registered tax agents, CPA accountants, bookkeepers and advisers to help individuals and businesses manage their tax and accounting responsibilities with clarity.

Led by Nilesh Vasoya CPA, who brings more than 15 years of accounting and taxation experience, we provide support with personal and business tax returns, BAS lodgements, GST, PAYG, superannuation obligations and compliant bookkeeping.

We focus on current requirements, accurate reporting and deductions that are appropriate to your circumstances and supported by evidence.

If your financial situation has changed or you are unsure what to disclose, contact Perth Tax People to discuss your requirements and prepare for your next tax return with greater confidence.