IT’S TIME TO GET IN FRONT OF THE TAX RETURNS WEIGHING YOU DOWN!
You are not alone and in fact, you would be surprised to find that we have a team of accountants that specialise in bringing clients up to date with their lodgements exceeding 25 years outstanding tax returns. The hardest part – ripping off the band aid and making the call to us to get it started!
It is necessary to lodge a tax return if you are employed, contracted, or operating a copy or trust and earning above the tax-free threshold or if tax has been paid on any income you have received. If the total income earned for the financial year is below the tax-free threshold, you are still required to lodge a tax return.
All Australian residents are entitled to the tax-free threshold which currently makes the first $18,200 of earned income, tax free. After that you are tax accordingly to the relevant rate.
Any additional income also needs to be declared. This may be investment income, such as interested earned on savings or rent received from an investment property. The types of income you need to declare are;
- Employment income
- Super pensions and annuities
- Government payments and allowances
- Investment Income
- Business, partnership and trust income
- Foreign income
- Other income such as compensation and insurance payments, discounted shares under employee share schemes and prizes and awards
Does it matter if I have two jobs?
If You receive more than one income at the same time, in the instance two jobs, you should only claim the tax-free threshold on one job. Generally we would recommend claiming the tax-free threshold on the job you earn the most from. As an extra option, you may also want to speak to your employer to ask them to deduct an additional amount of tax per pay cycle to cover any unknown tax liabilities that may occur however, it is always best to pick up the phone to speak to one of our team first!
We are also here to be able to help you in regard to any income that you may also receive in other forms such as Centrelink allowances and/or pensions. Be mindful that Centrelink payments generally won’t have any tax withheld, therefore you may find that there may be tax payable when you complete your tax return!
Walk me through it, what steps do I need to take?
STEP 1 // Call Our Office
We don’t mind that you haven’t lodged you tax return in several years. There have been plenty of stressed and worried people that have walked into our office over the years and every single time they have left feeling relieved with a weight off their shoulder and some lucky enough to have a refund in their back pocket. We are not here to judge we are here to make you feel comfortable and safe no matter how many years you have outstanding.
When you call, you will need to have a few details on hand so that we are able to download all of your historical information form the Australian Taxation Office (ATO); details such as your date of birth and your tax file number.
STEP 2 // Take Over
We will log onto the ATO Tax Agent Portal and add you onto our system to show the Australian Taxation Office that we are acting as your Taxation Agent. From here we are able to download and check exactly what and how many years are outstanding. This is an important step in the process as it allows us to download all of your historical information – in the case that you have lost or misplaces from of your PAYG Payment Summaries, don’t worry, it is highly likely that we will be able to download them. From here we will also be able to check if you have any outstanding debts with the ATO.
STEP 3 // Making A Start
Before you come in, one of our accountants who specialises in multiple outstanding returns will review the information that we have been able to access from the ATO Tax Agent Portal and prepare the returns to draft.
STEP 4 // Starting The Magic
Turn up to your appointment so we can start the magic! We will make a start be going through all of your outstanding returns with you – going over the information that we have been able to obtain from the ATO and helping you piece together any missing bits and pieces of information.
STEP 5 // Detective Work
Finding missing information. We will identify what information if any, is missing and make a list so that you can follow it up – easily and simply.
STEP 6 // Crossing The Finish Line
Once complete, we will give you a copy of the estimates so you know well in advance what the estimate refund or assessment is likely to be. We sit down with you to go over these individually and thoroughly so that it all makes sense and you are clear on the outcomes.
STEP 7 // Lodgement Time
We lodge all outstanding tax returns with the ATO.
STEP 8 // Assessments
Once assessed by the Australian Taxation Office (ATO) we will take the time to check your tax returns and ensure that the assessments are correct in accordance with the information that we provided the ATO on your tax returns.
STEP 9 // Fines, Penalties + Refunds
If you have received any fines or penalties, our next step is to contact the Australian Taxation Office (ATO) and discuss these with them on your behalf. If there are unusual circumstances that have led to the late lodgement of tax returns; such as illness, injury, divorce, relationship breakdown, accident or otherwise as your appointment tax agent, we will discuss these with the ATO and apply for remission of the penalties and interest that may have been applied to your account.
We understand there may be various reasons that have led people to get behind in their tax returns – it’s our job to be here for you to help you catch up! Paying tax is all a part of life, as your Accountant, our role is to make sure you don’t pay any more tax than required. We are here with you through the entire process and to help you get back on top of making it an annual habit to lodge your income tax return.
