When (really) is your tax return due?

Around May every year hundreds of our clients ask us ‘when exactly is a tax return due?’

It depends. There are various dates throughout the year for businesses and individuals.

In most cases, if you are an individual and one or more of your previous year tax returns were outstanding on 30 June last year, or, have been prosecuted for non-lodgement of a return then it was due on 31 October last year.

Sometimes the ATO will advise prosecuted clients of a different (usually earlier) lodgement due date. If you do get a letter informing of a specific date we strongly advise to meet that deadline.

If your latest tax return results in a tax bill of $20,000 then your return is due on 31 March 2017.

Tax returns for all remaining individuals who are represented by a registered tax agent are generally due on May 15 2017. In some cases, a short extension may be applicable but not past early June.

Even though we’ve seen fines of over $1000 for those who missed deadlines, if you appoint a Registered Tax Agent now then we can usually reverse or reduce any fines or penalties. For more information check out the full ATO due dates here.

Mr Tax Refund is Australia’s Favourite over-the-phone Registered Tax Agent. Our Dedicated Tax Consultants get you the biggest refund possible for the lowest fees. We can lodge your individual tax return/s after a quick phone call that can be organised during the day, later in the evening or even on the weekend.

Here’s what our clients say about us.

Thomas Dent

I have been using Mr Tax Refund for a few years now and they have consistently delivered the best and easiest tax returns I’ve completed. After years of seeing an accountant in who overcharged and made me feel uncomfortable around my earnings and purchases, and always delivering low returns, the easy phone calls with Mr Tax Refund and good kickback have been a revelation. Big ups.

Call us today on 1300 829 227 or visit www.mrtaxrefund.com.au

7 Daily Hacks to Better Tax Refunds – Day 2 (EOFY Sales!)

By Stephen Burns CEO Mr Tax Refund.

Tax Time is 7 days away. In an effort to reduce the tax season headache we thought we’d give you some daily short hacks as a countdown to tax refund time.

Hack 2: See if you’ll benefit from the End-of-Financial-Year sales

Ever wonder why companies like Officeworks have end-of-financial-year sales in June? It’s because they know that people ‘stock up’ on stationery and supplies just before June 30 to claim the expense straightaway.

If you’ve had a pay rise during the year, you might have bumped up to a higher tax bracket. A tax bracket is the amount of tax you pay according to your income. The aim would be to claim as many deductions as possible to ensure you drop down into the lower tax bracket, so jumping into the end-of-financial-year sales is a massive YES.

Work out which tax bracket you fall into from the tax table below. This will determine whether or not you should buy or delay before the end of the financial year.

Tax Rates 2015-16 Source: ATO

If your income is higher or the same as last year, you might be better off buying tax deductible supplies as it could move you down into a lower tax bracket.

If your income (and tax) is lower this year and you expect it to increase next year then it’s better to hold off until next year.

It’s important to speak to a tax consultant about which tax bracket you fall into for the year and the effects of purchasing supplies or stationery in the end-of-financial-year sales.

7 Daily Hacks to Better Tax Refunds – Day 1.

By Stephen Burns. CEO Mr Tax Refund.

There are only a few times every year that we get excited about money. A part from opening birthday cards and grabbing a bargain at the Boxing Day sales, the biggest cash time for most of us is during Tax Season.

We are among the highest taxed individuals in the world; in fact, the top marginal tax rate in Australia is now 47%. If you are earning between $37,001 – $80,000 you could be paying up to 32.5%. That’s just under a THIRD of your annual salary.

This is why it’s important to make sure that you’re not paying any more tax than you have to and that you understand what tax deductions are available to you.

Tax Time is 7 days away. In an effort to reduce the tax season headache we thought we’d give you some daily short hacks as a countdown to tax refund time.

HACK 1: Keep ALL Your Receipts

This is our number 1 tip when it comes to maximising your tax refund and minimising the amount of tax you pay. Keep all of your receipts because you never know what you might be able to claim with the help from a tax consultant!

Receipts = Tax Deductions = More $$ Tax Refund

BASIC RULES ABOUT DEDUCTIONS.

You can only claim deductions for work related expenses. If you’re an Administrative Assistant you can’t claim sunglasses and sunscreen, but if you’re a Roof Tiler you can.

You can only claim deductions incurred while performing your jobIf you are a Warehouse Worker completing a paid training course to become a Chef you can’t claim that deduction. You’ll have to wait until you become a Chef to claim.

You can claim an expense if it’s used for both work and personal use. If you use your mobile phone or internet for both personal and work reasons, you can still claim what you use for work (so keep the bill or receipts!)

Deductions aren’t added to your tax refund, dollar for dollar. They’re taken from your taxable income, which means you get a proportion back depending on your income and taxation bracket.

Whether your receipt is for $2 or $2,000 it can quickly add up over the financial year.

HOW TO STORE YOUR RECEIPTS ELECTRONICALLY

You can store your receipts electronically by downloading the MyDeductions App from the ATO. Alternatively, you can store them on your phone or computer by taking a clear photograph or scanning them.

HOW TO STORE YOUR RECEIPTS MANUALLY

Just pop your receipts in your bag, wallet or purse. From here you can toss them into a folder every couple of days. If you want to write notes on the receipts make sure you don’t use a highlighter as it can fade the ink.

After you submit your Tax Return, make sure you keep the receipts for at least 5 years. This is so you can prove your claims if the ATO asks for them.

Stay tuned for Daily Hack 2 tomorrow or if you want all 7 now download our FREE EBOOK.

 

 

 

Late Returns – Don’t risk it much longer. We can help today.

Tax return late? ATO on your back? Many tax returns to lodge at once?

It can be a stressful time. For some of us, lodging a tax return year after year can be a pain, and some of us just plain forget, but lodging a tax return annually is the law for most taxpayers in Australia.

The good news is it’s never too late to lodge a tax return. If you haven’t lodged your tax for a few years or you have a return outstanding it’s ok as long as you lodge voluntarily and don’t owe any tax to the ATO. If you do owe tax then you could be up for penalties interest (we can help you get those waived)

The peculiar thing is that up to 1.5 million Australians annually don’t even lodge a tax return – most of these don’t because they mistakenly don’t think they will get a refund. heaps of our clients had not lodged tax returns for many years and have received due sizable refunds. For example, one of our clients was pleasantly surprised to hear he was due over $30,000 from 9 years of unlodged returns.

The average tax refund issued last year was $1,800 which would tend to indicate there are literally billions in unclaimed refunds Australians are missing out on simply because they don’t bother to check or don’t know how to check what they are entitled to.

Don’t be one of them. Talk to us about getting your prior year returns in asap. Click here for a 2 minute signup.

Mr Tax Refund specialises in the lodgement of multiple year tax returns. We help people just like you all the time. Even if you are many years behind we can look after you. Our low fee structure and maximum refund guarantee ensures that you get the best possible outcome – more cash in your pocket.

But do it now, there is absolutely no reason to wait, and you could be missing out on some serious cash.

Click here for a 2 minute signup.

Leaving Australia Permanently and Want Your 2016 Tax Refund Early?

If you’re a resident leaving Australia and will stop receiving income from Australia and are ceasing to be an Australian resident you may be eligible to get your 2016 tax refund now rather than wait till July!

Simply collect a payment summary from each of your employers plus details of other income you have earned while in Australia then give us a call on 1300 829 227 or email us at support@mrtaxrefund.com.au. We can do it all over the phone at the best value fees around and we’ll usually have your refund to you in weeks!

Depreciating Assets for Your Rental Property

As an owner of an investment property you may be eligible for a number of tax benefits.

One of the more significant of these is claiming depreciating assets in your tax returns.

As defined by the Australian Taxation Office (ATO), a depreciating asset is “an asset that has a limited effective life and can reasonably be expected to decline in value over the time it is used”.

A good example of this might be a set of tools or perhaps a computer.

Through your tax return in Australia, you can deduct an amount equal to the level of decline in value of your depreciating asset. This can be deducted for a specific income year.

The amount you can deduct may be reduced to the extent of the use of your asset.

Most of the depreciating assets in your rental property are there to help provide you with assessable income; however there are some assets you might not be eligible to claim.

Some examples of depreciating assets you can claim include freestanding furniture, washing machines, television sets and stoves.

Calculations for these can be a little tricky to get your head around, so it may be wise to get some advice from a tax agent to help you prepare your tax return for your rental property.

Tax Returns for Working High School Students

As a high school student, it’s likely that you will want to earn some pocket money while you’re still studying.

Perhaps you will pick up a few regular shifts at a restaurant at night, or maybe spend your weekends working at a shop.

Working while you’re studying is a great way to save up over the year and contribute to university costs, or maybe purchase your first car.

But those aged under 18 who work in Australia can have their income taxed at a higher rate than normal.

If you were aged under 18 on June 20 2013 (the end of the last financial year) then you could find yourself paying more tax.

However, some individuals may have part of their income excepted from these higher rates.

This means that you will need to complete the Under 18 Adjustment section of your tax return in Australia to ensure that you are not going to get taxed more than you need to.

If you haven’t lodged a tax return before and would like some expert assistance, get in touch with a tax agent to help you through the process.

Claiming Offsets for Dependents and Spouses

Many of us choose to look after older or sick relatives for extended periods of time. It’s human nature to do so!

You may give up a few hours per week to take care of their daily needs, or perhaps pay for some of their medical or education expenses.

However, the cost of performing these duties can all add up to quite a substantial amount.

If you’re looking after a dependent spouse, parent or child, then you may be entitled to claim a tax offset in your tax returns.

To be eligible, the dependent must be an Australian resident for tax purposes, be an invalid and be either a spouse; you or your spouse’s child, brother or sister aged over 16; a parent; or your spouse’s parent.

This tax offset can help you to limit the amount of tax you are paying in your income tax return in Australia.

It’s important to note there are guidelines that apply, such as the Adjustable Taxable Income (ATI). This can vary depending on how many dependents you maintain and the level of income you and your dependents receive.

If you have dependents and would like to see if you’re eligible for tax offsets, get in touch with tax agent for assistance.

Tax Returns for Negatively Geared Properties

Negative gearing is a very common investment strategy in Australia and has a number of benefits.

The strategy occurs when the costs associated with the property outweigh the rental income received. This could be a property that has been purchased with borrowed finance and doesn’t receive enough funds from the rent to pay off the interest on the loan, resulting in a loss.

There are many things that owners of negatively geared properties need to remember when lodging their annual tax return in Australia.

Owners can claim tax deductions for the full amount of expenses related to their rental property against their rental income and other types of income if a net rental loss occurs. This includes salary, wages or business income.

If the other income earned isn’t enough to cover the loss then it will be carried forward to the next financial year.

Claiming expenses for your negatively geared property in your tax returns would then result in you receiving a tax refund for that financial year.

As an investor, it’s up to you to decide which property investment strategy is best suited to your lifestyle and portfolio.