Individual tax return review checklist for Australian accountants

1. Confirm identity, authority and current circumstances

• Confirm client details, the relevant income year and authority to act through the firm's verification process.
• Check material changes to residency, family circumstances or other facts affecting the return.
• Confirm refund-account changes using the firm's approved verification controls.
• Identify deceased-estate or representative arrangements requiring special handling.
• Record material changes in the client's employment, investments, business or property interests.

Do not assume last year's personal details remain correct. The TPB identifies changed circumstances as a reason to consider additional enquiries. (R1)

2. Establish the evidence set

• Identify the final draft return and current workpapers.
• Check the status and completeness of relevant income statements and pre-fill information.
• Obtain relevant tax statements, client instructions and supporting records.
• Compare the file with known prior-year income sources and material events.
• Record information still requested and any limitations in the review.

Treat pre-fill as information to assess, not proof that there are no other reportable matters. A prior-year difference is a question to investigate, not an automatic adjustment.

3. Review employment and other income

• Reconcile employment amounts and withholding to the relevant final statements.
• Review allowances, lump sums, government payments and pensions where applicable.
• Investigate omitted, duplicated or unexpectedly changed income sources.
• Review foreign income, foreign tax and currency conversions where relevant.
• Check business or personal services income schedules and refer technical questions for assessment.

Keep gross income, cash received and tax withheld distinguishable. Where the applicable treatment is uncertain, record the facts and obtain the required technical review.

4. Review investments and capital transactions

• Reconcile interest and dividends to the relevant statements and ownership information.
• Review managed-fund or trust components using the relevant annual tax statement, not cash distributions alone.
• Identify asset disposals, including shares, property and digital assets where relevant.
• Check acquisition history, ownership, proceeds, costs and supporting CGT calculations.
• Review carried-forward capital losses and relevant concessions using the rules for the applicable year.

An absent gain in pre-fill is not a reason to ignore a disposal identified in client correspondence. Likewise, an unexplained prior-year investment does not prove a current-year disposal occurred.

5. Review rental property schedules

• Confirm ownership interests and the period of income-producing or private use.
• Reconcile rental income and material expenses to supporting records.
• Review the nature of repair, replacement and improvement expenditure.
• Check the basis for interest, depreciation, capital works and apportioned claims.
• Investigate a missing schedule, new property, disposal or significant change in results.

A description such as "repairs" on a ledger or client spreadsheet does not determine the tax treatment. Review the underlying work and circumstances.

6. Review deductions and personal superannuation

• Establish the basis, connection to income and substantiation for material deductions.
• Review reimbursements, private use and apportionment.
• Check the method and records used for vehicle, travel, home-working and self-education claims where relevant.
• Reconcile personal superannuation deductions with contribution records and the relevant notice and fund acknowledgement.
• Assess eligibility, timing and applicable limits before accepting a personal superannuation deduction.

Agreement between a claimed amount and a document is not the same as meeting every condition for the deduction. Use the current ATO guidance for the client's circumstances.

7. Review offsets, levies and personal information

• Review private health insurance information and relevant coverage periods.
• Check spouse and dependant information where it affects the calculation.
• Review residency-related, levy, surcharge and offset questions using current instructions.
• Check relevant study or training loan information and repayment consequences.
• Investigate an unexpected tax result rather than treating a refund as inherently correct or incorrect.

Do not apply a blanket "high-risk" threshold as though it were an ATO rule. A firm's escalation thresholds are internal controls and should be labelled as such.

8. Resolve queries and document the final review

• Confirm every material query has an answer, owner or escalation path.
• Update all affected return labels and supporting schedules.
• Record significant assumptions, evidence and technical conclusions.
• Complete the firm's client-approval and declaration process.
• Record the review outcome and final practitioner decision.

The tax review file note checklist gives a practical format. Retain the records appropriate to the service and applicable obligations. (R2)

Example: a property disappears from the file

Fictional example. Last year's return included a rental property. This year's client pack contains no rental schedule and no explanation.

A useful review query asks whether the property was sold, ceased being rented, changed ownership or simply has missing information. It does not invent rent or assume a disposal. Once the facts are established, the practitioner determines which records and tax treatment are required.

Where Taxpartna fits

Individual tax return review software is being developed to assist with evidence, inconsistency and apparent information-gap review. This checklist does not imply the feature is available or that every item will be automated.

Explore the Individual Review preview, or use the checklist as part of your firm's existing review process now.

Sources

• R1: Tax Practitioners Board: Reasonable care
• R2: Tax Practitioners Board: TPB(GS) 52/2024 Obligation to keep proper client records

General information only, not personal tax advice. The registered practitioner retains responsibility for enquiries, calculations, conclusions and final sign-off.