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Lodgement of individual tax returns
When lodging an individual tax return, taxpayers
generally have the following four lodgement options
available to them:-
- Via a tax agent
- Using the Australian Tax Office’s e-tax internet
system
- By post using TaxPack (available from most newsagents
or tax office shop front)
- The telephone, however this method is only available
for a short tax return
The tax office’s lodgement options are free and its
website shows you how to lodge a return.
The deadline for individuals lodging their own 2007
income tax return using methods 2 to 4 above has now
passed as they were due by the 31st October. However, if
the returns are lodged through a tax agent, then you
generally have until May of the following year to lodge
the return.
Whilst the due date for self lodgement has passed for
individuals, you are still able to use e-tax until 29
February 2008. However, failure to lodge your tax return
by the 31st October 07, means that you may be subject to
a “Failure to lodge penalty” as well as General Interest
Charge (GIC), which is imposed by the Tax Office.
The latest statistics show that there are around 11.5
million individual tax returns lodged each year. Tax
agents prepare around 73%, whilst the remaining are self
lodged. Of those that are self lodged, around half use
e-tax.
The ATO is getting more and more active in reviewing
compliance of tax returns. In 2006-7, they amended
251,100 individuals’ returns and when comparing third
party information against returns, they identified
257,200 income discrepencies that resulted in revenue
adjustments of $143.8 million.
Two areas that appear to be consistently on the ATO’s
radar are work related expenses and rental properties.
With around 7.1 million individuals claiming $12.5
billion in 2005/06 in work related expenses (increase of
9.3% over the previous year), it is a continuing
compliance problem for the ATO. For the 07-08 year, they
plan to conduct 15,000 reviews or audits of at risk
clients that are claiming excessive work related
expenses.
With regards to individuals with rental properties, the
ATO plan on examining at least 6,000 at risk cases where
material amounts are involved.
With the fast pace of technology, the ATO is now able to
quite easily data match records. This year, they will
match about 50 million transactions to verify details
such as:
- Employment income, including salary and wages,
allowances, lump sum payments and reportable fringe
benefits
- Government benefits and other payments
- Interest & dividend payments, and
- Health insurance premiums paid and the period of
cover.
Many find lodging their own return intimidating but if
you have a simple tax return, it should be quite easy to
do yourself. The choice between self-lodgement and using
a tax agent usually boils down to how complex your
return is and how confident you are in claiming
deductions.
Provided by: Charge Thoo & Co. Chartered
Accounting firm located in North Sydney. Who provide
tax, accounting and business services to small to medium
sized businesses, as well as individuals -
www.chargethoo.com.au
November 2007 Disclaimer
Important: This is not
advice. Items herein are general comments only and do
not constitute or convey advice per se. The information
does not take into account your personal situation,
objectives or needs. |
