Do you have overdue tax returns?

We have worked with hundreds of taxpayers with ovedue tax returns to lodge and they have all felt immensely relived from the first time they called us on 1300 829 489 or just filled out our tax agent appointment form.

From the moment you fill out our tax agent appointment form, the ATO will know that we are responsible for your late tax returns and they will no longer bother you about them.

Just knowing that you won’t have to deal with the ATO or explain yourself to them is a huge relief.

Do People With Overdue Tax Returns Get in Trouble?

It really depends on your situation. If all your late tax returns are refunds, then they will probably be assessed without penalty. If you owe the ATO money, then they will generally ask for an explanation as to why they are late.

The ATO can issue fines and charge interest on money owing, but if you have a reasonable excuse then this can often be waived. We have extensive experience negotiating on behalf of taxpayers with late tax returns, and pretty much every fine we’ve seen we’ve been able to get waived.

What if I Have Lost My Group Certificates?
One of the most common reasons people have late tax returns is because they have lost payment summaries. The good news is that the ATO keep record of people’s payment summaries and we can easily order them in for you.
All you have to do is fill in our tax agent appointment form and we will request a copy of all your payment summaries from the ATO. We don’t charge anything for requesting your records, it’s really quite a simple process from our end.

What if I have Lost My Receipts
Most people with late tax returns have at least a few missing receipts, and we will be able to advise you of the best course of action in this circumstance. You have to have valid receipts for your claims once they are over a certain amount, which varies from year to year.

But there are also some receipts that can be obtained from the supplier if needed, and there are some claims that can be made without receipts. Our experience lodging overdue tax returns means we’ll be able to advise you on a year by year basis until you are up to date.

Car and Travel costs focus of the ATO

Car and travel costs continue to be one of the largest categories of work-related expenses claimed by individuals (e.g., employees, sole traders, contractors).

As a result, the ATO continues to focus on incorrect car and travel expenses, particularly where they involve travel between a taxpayer’s home and place of work.

Generally, home to work travel costs are not deductible under S.8-1 of the ITAA 1997 as they are incurred at a point that is too preliminary to an individual taxpayer’s income-earning activities.

Also, the essential character of such expenditure is considered to be private or domestic  in nature.

Two important exceptions to this general rule are where an individual is engaged in ‘itinerant’ work, or where the travel is attributable to the transport of bulky equipment.

In either case, a deduction for car and travel expenses relating to home to work travel will be allowed.

Check with your tax agent before claiming these expenses.

Increase in the Medicare levy low-income thresholds

The Government will increase the Medicare levy low-income thresholds for singles, families and seniors and pensioners from the 2017 income year.

  • The threshold for singles will be increased to $21,655.
  • The family threshold will be increased to $36,541 plus $3,356 for each dependent child or student.
  • For single seniors and pensioners, the threshold will be increased to $34,244.
  • The family threshold for seniors and pensioners will be increased to $47,670 plus $3,356 for each dependent child or student.

No deduction for travel expenses for residential rental properties

From 1 July 2017, the Government will disallow deductions for travel expenses related to inspecting, maintaining or collecting rent for a residential rental property.

This is an integrity measure to address concerns that many taxpayers have been claiming travel deductions without correctly apportioning costs, or have claimed travel costs that were for private travel purposes.

This measure will not prevent investors from claiming a deduction for costs incurred in engaging third parties, such as real estate agents, for property management services.