Do you have overdue tax returns?

If you have overdue tax returns from previous years, we know that it can become more difficult to even think about catching up and lodging them.

What will the ATO do if I don’t lodge a tax return?

Firstly, the ATO will issue you a Failure To Lodge (FTL) penalty if your tax return isn’t lodged by the due date. Significant fines can be applied the longer you delay the lodgement of your return.

Are there other penalties for lodging a late tax return?

Where fines have failed get you to lodge a return, especially where you have several years outstanding, the ATO can issue you with one or more default assessments. This is basically an estimated assessment of your income, based on data held by the ATO.

As these are estimates, they’re rarely correct and often show a higher tax liability than you would actually owe as they don’t take deductions into account.

Will I get prosecuted if I don’t lodge a tax return?

Even though it’s not common, the ATO can and does prosecute for failing to lodge tax returns. The maximum penalty which can be applied on prosecution is $8,500 or imprisonment for up to 12 months.

What should I do if I haven’t lodged my tax return?

If you’ve got one or more tax returns outstanding, the ATO will eventually catch up with you.

So getting your late returns done before the ATO comes after you is the best way to minimise any risk of fines and prosecution.

Our experienced tax agents can further help you minimise this risk by lodging a late tax return on your behalf. We can advocate for you if there were good reason why you were late lodging.

Getting your tax returns up to date can also help you catch up with entitlements such as superannuation co-contribution and family tax benefits. If we find out that you didn’t need to lodge a return for some of your outstanding years, we’ll submit a non-lodgement advice on your behalf.

So don’t hold off any longer. Contact us today and let us take the pressure off you.

The benefits of personal super contributions

Did you know that you could boost your super AND lower your tax by adding your own contributions to your super fund?

If you make a personal super contribution, you may be able to claim the contribution as a tax deduction and reduce your tax assessable income.

Personal super contributions are the amounts you contribute to your super fund from your after-tax income (that is, from your take-home pay).

What deductions can’t I claim for personal super contributions?

You can’t claim a deduction for superannuation contributions paid by your employer directly to your super fund from your before-tax income such as:

  • the compulsory super guarantee
  • reportable employer super contributions shown on your annual payment summary
  • extra amounts above any compulsory super contributions your employer makes on your behalf
  • super contributions made through a salary-sacrifice arrangement

When can I claim for personal super contributions?

To be able to claim a deduction for personal super contributions you need to get your income from:

  • salary and wages
  • a personal business (for example, people who are self-employed contractors, or freelancers)
  • investments (including interest, dividends, rent and capital gains)
  • government pensions or allowances
  • partnership or trust distributions

Other things to consider

When deciding whether to claim a deduction for super contributions, you should consider the super impacts that may arise from this, including whether:

  • you will exceed your contribution caps
  • you wish to split your contributions with your spouse
  • it will affect your super co-contribution eligibility.

Feel free to contact us to find out more about personal super contributions and how you can maximise the benefits.

 

The dangers of doing your own tax return

Thinking of doing your own tax return this year. Before you do, consider the following points.

Do you know what you can rightfully claim?

Common deductions can include work-related expenses, self-education expenses, charitable donations and the cost of managing your tax affairs, like paying an accountant.

If you’re lodging your own tax return online, you have to understand the definitions of deductions and how to apply them.

Using a qualified tax agent can ensure you stay within the law and help maximise your claims. Too many times we have seen people come in after doing their own tax returns the previous year and we are amazed at how many deductions they miss out on.

Are you wasting your own time?
While using the ATO’s tax return service might seem to be quicker, it often takes a lot longer as the system can be very complex if you are aren’t sure what to claim.

Once you add in the time to collate your information, look up your deductions and check to make sure you haven’t made any mistakes, the process can take at least an hour or two. In less time, you can speak to one our agents and get it all done for you.

To make the process as convenient and hassle-free as possible, you can use our tax return form to get your taxes done quickly and accurately.

How important is peace of mind?
When you lodge your return yourself, the responsibility falls squarely on your shoulders. Getting it wrong could mean an audit from the ATO.

One of the main advantages of using our tax agents is that you get peace of mind. Choosing to lodge through us ensures you are compliant with tax laws and you can rest easy knowing your return has been accurately prepared.

Do you have the necessary knowledge?
With decades of experience lodging thousands of personal income tax returns, we’ve learnt a lot about tax.

Every tax return is unique, so getting the right advice can save you time, stress and unnecessary payments to the ATO. Sitting down with us means we will be the ones to working out the intricacies of your finances and what you’re entitled to claim.

So, to make sure you get the best results this year, call us today or use our online form.