Tax Returns - Your Frequently Asked Questions

Why should I use your tax service?

With Mr Tax Refund, your tax needs are taken seriously. Our professional tax agents are here to assist you at every step. Our simple to use tax software provides an easy to understand tax return. We also provide phone support should you need any final advice or revisions prior to lodgement to the ATO.
Maximise your refund and deductions: A qualified accountant will check your return before it is lodged to the ATO. We'll often identify additional areas for extra deductions which can increase your refund.
Faster Service and Lodgement: No need to leave your computer! You can ask your Mr Tax Refund Accountant questions at any time via email, digitally sign your return, make online payments and we lodge your return direct to the ATO on your behalf.

How do I use your service?

It’s simple. You can get started by filling out the Client Details form on our website. Once registered, we confirm the appointment time via email, call you at the pre arranged interview time and complete your tax return.

How long does it take to complete a typical tax return?

Completing a tax return usually takes 10-40 minutes.

Am I required by law to lodge a tax return?

If you paid any tax during the year through PAYG withholding or any other method, you should lodge your individual tax return in order to see if you are eligible for a refund. The ATO does require you to lodge your return under a variety of circumstances - to determine if the ATO requires you to lodge your return, please check with the ATO.

What do I need to lodge my return with Mr Tax Refund?

To complete your tax return with Mr Tax Refund you will need the following:

Can you complete my tax return if I am missing a PAYG Payment Summary (group certificate)?

The ATO frowns on anyone lodging returns without a PAYG summary, especially in the early part of the tax season (ie July – August) as they like to give employers every chance of getting PAYG summaries to the employee.

If the employee has not been given a PAYG summary by the end of August you may submit a tax return using payslips as long as it is accompanied by a statutory declaration signed by a JP.

Can I have your fee taken from my refund?

We can deduct the Mr Tax Refund fee from the ATO refund and have the net funds deposited directly into your own bank account should you so wish. There is a charge to use this service.

Can you prepare multiple years returns at the same time?

We can prepare and lodge all past year's returns together at the same time. The current year's refunds will be returned in the normal period but there may be slight delays with refunds coming from the ATO for previous years returns and possibly not arriving together.

Do I need to keep a hardcopy of my taxation records?

Federal tax law states you must keep your records for 5 years from October 31st or if you lodge later, five years from the date you lodge your return. If at the end of this period you are in dispute with the ATO, you must keep you records until any dispute is resolved.

Do I need to physically sign any paperwork before my return can be lodged?

When you complete your tax return you'll see instructions on how you can digitally sign your return, at the 'sign' step in the online tax return. This means there is no need to sign a piece of paper or send a physical copy of your return to Mr Tax Refund.
You should however, print a copy of your signed return, sign it and keep it in your own records.

Will I be penalised for lodging my return late?

You may receive a fine or interest penalty charge from the ATO if you lodge your return late. Generally if you are entitled to a refund those penalties are minimal. Mr Tax Refund has lodgement extension facilities that will minimise such charges.

Can I claim any deductions if I have no receipts?

Under some circumstances receipts are not required, but in order to maximise your tax deductions, we recommend you retain all your work and business related receipts and bring them with you at the time of your return preparation.

How much can I claim if I buy a computer?

If you purchase a computer for use in your work or business, you can generally claim a percentage of the depreciation that pertains to your work or business use. The depreciation allowed will depend on the expected life of the computer or how long it is expected to be current.

How much can I claim on my motor vehicle?

There are different methods for claiming expenses in relation to the business use of your motor vehicle. These can be complex so to maximise your potential claim you should maintain a daily mileage log book for at least three months of the year and a record of any expenses for the full year.

I received money from the Gov't during the year, do I include it in my tax return?

Some government payments and allowances are included as taxable income, others are not. It's important that you declare any taxable payments such as age pensions, Newstart allowance, youth allowance or Austudy in your tax return. A complete list of payments which do not need to be included on your tax return can be determined when you have your appointment with the Mr Tax Refund Tax Consultant.

Can I claim my work uniform as a tax deduction?

Deductions for uniforms can only be claimed if the work uniform is specific and identifiable to your organisation (such as chef's checked pants) or protects you from injury whilst you are at work. You can't claim the cost of a plain uniform or conventional clothing, such as white shirt and black pants or skirt which is commonly worn by waiters and waitresses, even if your employer tells you to wear them.

I am in Australia because I have a two year contract with a local employer and have a temporary working visa. I have been told that I am classified as a temporary resident of Australia. Why is this important?

Since 1 July 2006 there has been a separate category for people who are temporarily living in Australia. A permanent resident is generally taxed on all income in and out of Australia but a temporary resident is exempt from paying tax on certain classes of income. People who exhibit the behaviour of a 'resident' and hold a temporary visa granted under the Migration Act of 1958 will be taxed at resident rates. Temporary residents may also be liable to pay the Medicare levy unless they are eligible to apply for an exemption.

I have been in Australia for 12 months on a temporary working visa and have been backpacking around the country picking up a few temporary jobs to help with expenses. The payment summaries that I have received from my employers show total earnings of about five thousand dollars. Some employers deducted tax and I have been told that I should get this all back when I put in a tax return.

You would be considered to be a non-resident for tax purposes because you have not settled in any one place and established a home during your stay in Australia. You may not get all your tax back when you lodge a tax return because you will be charged non-resident tax rates. This means that you have to pay tax on every dollar of your taxable income. You will not have to pay the Medicare levy though.

What is the difference between resident and non-resident tax rates?

Non-residents pay tax on Australian source income. They pay tax on every dollar of taxable income as declared on their tax return but do not pay Medicare. Residents have to declare all income earned in and out of Australia. A tax free threshold of $6000 is available to them and a resident may be entitled to claim some tax offsets (rebates) that are not available to non-residents. Depending on their income, a resident may also have to pay the Medicare levy and Medicare levy surcharge.

I have started a second job. Is there anything that I need to do so that I don't end up with a tax bill at the end of the year?

You cannot claim the tax free threshold of $6,000 from more than one employer at a time. It is better to claim it from your main employer. You will pay a little higher rate of tax on the second job but this should ensure that you have paid enough tax on all of your wages for the year.

I am covered by private health insurance and will be turning 65 this year. Will my premium be reduced?

Taxpayers who take out private health insurance are entitled to claim 30% of the premium as a tax offset. This can be taken as a reduced premium, a cash refund from Medicare or claimed through the tax return at the end of the income year. From 1 April 2005 premiums for health insurance policies covering people over 64 years of age have attracted a higher tax offset. If the eldest person covered by the policy is aged 65 or above the offset increases to 35%. Where the eldest person covered by the policy is 70 years or over the offset increases to 40%.

I have had a large pay rise and am worried that I will now have to pay the Medicare Levy Surcharge. Is there anything I can do?

The Medicare levy surcharge is payable where your income is over a threshold amount and you do not have adequate private hospital insurance. The threshold amount for a single taxpayer is currently $77,000 and for families with up to one dependent child it is $154,000. If your income for surcharge purposes exceeds the relevant amount and you do not have private hospital cover, you will pay the surcharge.
Income for surcharge purposes is a new income test and includes amounts previously not considered in determining liability to pay the surcharge. It includes your taxable income, exempt foreign employment income, investment losses as well as reportable fringe benefits and reportable superannuation contributions. If you are unsure whether or not you will be liable to pay the surcharge, please ask your Mr Tax Refund tax consultant.

I am experiencing financial hardship. How can I get my refund more quickly?

The ATO does consider financial hardship cases and occasionally will refund applicants quicker than normal. In our experience however the hardship reasons have to be extremely urgent and even then the refund may still take weeks to arrive. If you require your refund urgently the best way is to arrange for a Mr Tax Refund sent to your account in 24 hours.