The first step when getting prepared for tax time is to choose from the lodgement options.

You can use a tax agent, the Australian Tax Office's e-tax internet system, or lodge by post using TaxPack. TaxPack is available at most newsagents or tax-office shopfronts.

If you opt for using a tax agent, the average tax agent's fee will range from $70 to $150. The tax office's lodgement options are free and its website shows you how to lodge a return.

The next step is to gather all your income details including your wages and investment income details.

To do this you will need a copy of your group certificate/s, bank statements, dividend notices and interest payments, rental income, capital gains on shares, real estate and other investments, work allowances, reportable fringe benefits, distributions from managed funds, exempt income, pensions payments and annuities, foreign income, partnerships and trusts, prizes and rewards, gifts over $10,000, summaries of benefits from Centrelink or Veterans Affairs and collect details of expenses, depreciation, deductions and tax rebates.

On the flip side of income and profit are outgoings and losses. Examples of claimable items include: rental expenses such as repairs and tenancy management fees, share broking expenses, expenses associated with real estate purchases, general investment expenses, work-related expenses such as telephone costs, petrol, cars and uniforms, self-education expenses, travel expenses, gifts and donations, medical expenses, decline in asset value (depreciation), investment losses, tax agent fees and other tax-management costs, capital allowances, work and education-related books, magazine subscriptions and general publications, tax rebates such as 30 per cent child-care rebate, superannuation, union fees, baby bonus, summary statements of private health insurance and income protection insurance statements.

Other handy things to note:

- If you earn more than $6000 in a financial year or have had tax withheld from your wages, then you will need to lodge a return;

- If an expense totals more than $300 you will need written evidence, so keep receipts.

- You can claim $300 worth of work-related expenses without receipts;

- You can claim 20 per cent of medical expenses over $1500 with receipts and if you work outside, you may be able to claim the cost of sunglasses, sunscreen and hats.

*Sara Morrison is business development manager at South West Credit.