The Australian Taxation Office (ATO) has granted a “green light” to taxpayers with uncomplicated financial situations, signalling that they can proceed with lodging their annual income tax returns.
ATO Assistant Commissioner Tim Loh emphasized that taxpayers with straightforward affairs will discover that most of the information required for filing has already been pre-filled in their tax returns.
Loh explained, “The majority of information we gather from employers, financial institutions, private health insurers, share registries, and other entities is now readily available. Therefore, if your financial matters are relatively simple, you’re free to lodge – but do remember to verify the accuracy of your details before submitting.”
Whether you choose to file through a registered tax agent or independently via myTax, pre-filled information will be automatically integrated into your tax return.
Loh also cautioned taxpayers that certain sources of income might need manual inclusion – such as income from rental properties, select government payments, or earnings from “side hustles.”
“Even with the green light, don’t rush! Take your time and ensure that all your details are correctly included,” advised Loh.
As you prepare to submit your tax return, keep these tax time tips from Tim in mind:
- Account for All Income: Any additional earnings from online activities, the sharing economy, investment interest, capital gains (e.g., property sales), or cash payments for services must be included in your tax return.
- Evaluate Your Current Situation: If your job or circumstances changed during the year, update your claims accordingly. For instance, you might have worked from home less in 2022-23 than the previous year due to a return to the office. Note that the method for calculating working from home deductions has also changed.
- Maintain Accurate Records: You must possess records to substantiate work-related expense deductions. The ATO app provides a convenient way to store records, including photos of receipts and invoices.
- Await Your Assessment Notice: The tax estimate in myTax or provided by a registered tax agent may differ from your final tax outcome. It’s advisable to wait for your assessment notice before making plans based on an anticipated tax refund.
- Beware of Scams: Be vigilant against fraudulent communications. The ATO will never request personal information through social media, email, SMS, or provide links to log in to online services.
Mr. Loh clarified, “Getting in touch with us won’t expedite the processing of your return, but you can monitor its progress by using the ATO app or myGov, regardless of whether you filed independently or through a tax agent. Typically, we process online returns within two weeks, but if there’s a delay, we’ll contact you.”
The ATO cautioned that this year’s tax return outcomes might differ from previous years, potentially leading to lower-than-expected refunds or even tax bills.
“There are various factors influencing your final tax assessment. In basic terms, no refund suggests you’ve paid the correct tax amount throughout the year. A tax bill may indicate an underpayment – this could arise from multiple reasons,” Loh explained.
For self-filed returns, the payment due date is November 21, regardless of the submission date. Those utilizing a registered agent might have a later due date.
“If you’ve received a bill and can pay, it’s crucial to do so by the due date to avoid accruing interest. If you’re encountering financial difficulties, we offer payment plan options that you can set up yourself on the ATO website,” Mr. Loh advised.
You can minimize your taxable income by ensuring you claim entitled deductions. The ATO provides more than 40 occupation guides to assist in understanding available deductions based on your profession.
“Although inflating your deductions may be tempting, we urge you to exercise caution. We possess advanced data-matching capabilities that allow us to identify questionable deductions,” Mr. Loh warned.
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