The Australia Tax Office (ATO) has now given the go-ahead to taxpayers with simple affairs to lodge their annual tax returns as most information required for lodgement has already been pre-filled. This includes information from employers, health insurers, banks, share registries and other relevant institutions.
However, while most information will automatically appear as pre-filled on their returns, the ATO is still cautioning taxpayers to thoroughly check that all relevant information is included before submission. ATO Assistant Commissioner, Tim Loh, has highlighted such information that may need to be manually added to returns, including rental income, income from side hustles and some government payments.
Even as the ATO gives the green light for those whose tax affairs are straightforward to lodge their returns, Loh has said that there is no need to rush and time should be taken to ensure all information is included.
Taxpayers are also being advised to ensure that they include all incomes in their tax returns. Whether it is from side hustles or capital gains from selling an investment property, it is necessary to ensure all incomes are indicated on the tax return.
For those that have experienced a change in their circumstances such as transitioning from working from home to being back in the workplace, it is important to ensure claims are correctly made. There have been changes to how work-from-home deductions are calculated so taxpayers will need to ensure they choose the right method when making calculations.
When claiming a deduction for work-related expenses, it is also necessary to have records that back up the claim. This can include invoices and receipts that can be easily uploaded via the ATO app. Taxpayers are also being advised that their tax estimate as per myTax or the figure given by their tax agent may differ from the final tax outcome. It is recommended that you wait for your notice of assessment to get a better idea of what kind of tax refund to expect.
Taxpayers are also being cautioned to be wary of possible scams. The ATO has confirmed that they do not send links for users to click on to log in to online services nor request taxpayers for personal information through email, text message or social media.
If seeking to track the progress of your return, Loh has directed taxpayers to make use of the ATO app or myGov. He warned that calling the ATO would not help to speed up processing. It is also noteworthy that most taxpayers should expect the outcome of their tax returns to be different this year as compared to previous years.
Those lodging tax returns on their own have a deadline of 21 November, while those using registered agents may have a later due date.
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