It’s that time of the year again.
It is time to lodge your tax returns as the 2018-19 financial year has come to end.
Whether you are filing it yourself or doing it via a tax agent, here are three most important things to keep in mind while lodging your return this year.
1. Wait till your account is Tax Ready
From this year, how you get your end of financial year information from your employer showing your earnings for the year (also known as a payment summary or income statement) depends on how your employer reports your income, tax and super information to us.
You will be provided with either:
- An income statement – if your employer reports your income, tax and super information to us through Single Touch Payroll (STP) they are no longer required to give you a payment summary, this information will be made available to you through ATO online services via myGov and finalised by 31 July.
- A payment summary – if your employer is not yet reporting through STP they will continue to provide you with a payment summary by 14 July (as they do now).
“Also, by July 20, more information from third parties, such as banks and private health insurers, will be pre-filled into tax returns,” says Nitin Sabharwal from Australian Taxation Office.
The ATO has also advised individuals to wait to lodge their returns till their online account linked to mygov shows it is ready for lodging.
ATO will send a notification to your myGov inbox when all of your income statements are 'Tax ready'.
“If your account says it is Not Tax Ready then please wait till it becomes Tax Ready,” says Mr Sabharwal.
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2. Choose your tax agent wisely
If you are planning to avail services of a tax agent to prepare and lodge your tax return, make sure the agent is a registered tax agent.
“Please be aware that the tax agent you are choosing is a registered tax agent,” says Mr Sabharwal.
ATO advises tax agents be registered with the Tax Practitioners Board (TPB).
You can find a registered tax agent, or check whether a person is registered by visiting the TPB website.
Using a registered tax agent will provide you with consumer protection as the TPB ensures they:
- meet and maintain the required standard or qualifications and experience
- comply with the Code of Professional Conduct
- when choosing an agent, you should discuss the service to be provided so you both know what to expect.
3. Due dates for lodging tax returns
The due date to lodge your tax return is October 31 2019.
However, if you are lodging your tax return through a tax agent, you need to contact them before October 31. Most registered tax agents have a special lodgement program and can lodge returns for their clients after the usual October 31 deadline.
Disclaimer: “We’d like to point out that the information contained in this segment is general and is not specific advice. If you would like accurate information relevant to your situation, you should ask your tax agent/Accountant/financial planner.”
