In case you have not but filed your tax return for the 2023/24 monetary yr, now could be the time to begin getting organised.
The Australian Taxation Workplace (ATO) has issued a reminder that the due date for people who lodge their very own earnings tax returns is quick approaching.
And for those who do not lodge your return on time, you could possibly face hefty penalties.
This is the whole lot it is advisable to know.
When do I must lodge my tax return?
People can both put together and lodge their tax return themselves, or have interaction a registered tax agent to lodge it on their behalf.
For people lodging their very own tax return, the deadline is 31 October.
If you’re lodging by way of a registered tax agent, the deadline will be prolonged, however licensed public accountant Manoj Gupta warns that the October deadline continues to be vital.
He stated anyone planning on utilizing a tax agent must be on the agent’s books earlier than the deadline in order that the ATO doesn’t report the return as overdue.
“It is rather, essential to discover a tax agent earlier than the thirty first of October and have interaction them, truly appoint them as a tax agent to allow them to get an prolonged lodgement date,” he stated.
“For instance, if somebody waits (to e book) and goes to a tax agent on the fifteenth of November, their lodgement date was the thirty first of October, so their tax return is already overdue.”
What occurs if I do not file my tax return on time?
There will be penalties for lodging a tax return late.
People who don’t lodge their tax return on time might obtain a Failure to Lodge penalty. This might imply a $313 cost for each 28 days you don’t lodge your tax return, with a most wonderful quantity of $1565.
Australians can both select to do their very own tax return or pay to have a tax agent full their return for them. Supply: Getty / LPETTET
In case you have a tax invoice, there might be extra penalties for an overdue lodgement and cost.
ATO assistant commissioner Rob Thomson stated extensions will be granted in some conditions.
“‘In the event you imagine you might have problem assembly your tax obligations, contact the ATO earlier than the deadline to lodge in order that we will take your circumstances into consideration,” he stated.
What can I declare on tax?
Relying in your circumstances, you might be able to declare work-related deductions in your tax return.
In the event you make money working from home, you possibly can declare a portion of your electrical energy and web payments as deductions. Equally, for those who use your cell phone for work, you possibly can declare a portion of your cellphone invoice as a deduction.
In the event you require specific stationary, tools or subscriptions as a part of your job, these will be claimed.
However Gupta stated you can’t declare your work commute as a tax deduction.
“Typically individuals do make a mistake the place they declare automotive bills going from dwelling to work, which isn’t claimable,” he stated.
“However they’ll declare automotive bills if they’re going from one work web site to a different, or any work journey apart from going from dwelling to work.”
If you need to put on a uniform with a emblem or protecting gear and work boots as a part of your job, these will be claimed, however non-uniform work clothes can’t be claimed, Gupta advises.
“Any uniform that you just’re sporting which you can’t put on wherever else, you declare that uniform for those who paid for that uniform,” he stated.
“If they’ve a pc bag and so they’re utilizing a pc for work, then no matter share they’re claiming of the pc for work-related utilization, this bag will be claimed.”
Objects similar to purses, clothes with out work logos, or workplace footwear shouldn’t be claimed, he stated.
Tax-deductible charity donations over $2 will be claimed when you have saved a receipt, together with issues like union membership charges, schooling and coaching, and the price of your tax appointment.
Will I get a tax invoice?
Relying in your earnings and deductions, some individuals will get a refund after lodging their tax return, whereas others will obtain a invoice.
It may be tough to foretell whether or not you’ll obtain a invoice or not as a number of components can contribute.
For instance, for those who promote property or investments, this would possibly transfer you into a better tax bracket, which means you need to pay extra to the ATO.
Moreover, in case you are working a number of jobs, haven’t declared your HECS or HELP debt together with your employer, or have earned cash by way of different means, you could not have paid sufficient tax all year long.
However when you have had capital losses, moved right into a lower-paying job, been unemployed for a interval all year long, or have a big quantity of deductions, you might have paid an excessive amount of tax and be entitled to a refund.
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