With the deadline for lodging personal tax returns just around the corner, experts are urging those planning to do it themselves to do so as soon as possible, to avoid what could become a $1500 fine.
According to Matt Free, nationwide data suggesting that a record number of Australians have yet to lodge their returns has also been reflected in his clients at ProYou in Parramatta and A Grade Tax in Penrith.
“We have seen a rush of people in the past couple of months and in the next two weeks having their returns prepared and lodged which is common, mainly so they can receive their expected refunds, even though most are significantly lower than past years,” he said.
“However, our lodgement data still has over 75 per cent of our clients who have not yet lodged their returns.”
This increase in people receiving a lower tax refund, with many even owing money, may be contributing to others neglecting or waiting to lodge theirs.
“It definitely has had an effect on some clients,” he said.
“Those that potentially owe money are now delaying lodgement until 2024 so as to avoid paying the ATO until the last moment.”
However, Free emphasises that taxpayers who self lodge risk penalties for late lodgement after Tuesday, October 31 and potential effects on other government benefits they may receive.
In order to maximise your tax return, it’s important to keep a few common deductions in mind, including working from home expenses based on hours worked, computer expenses, car travel when used for work purposes, and travel and accommodation when travelling for work where it hasn’t been previously covered.
“All of the above apply where the cost is met by the taxpayer,” he said.
“If the costs are reimbursed by an employer, then they would not be deductible to the taxpayer on their return.”
Free said that the most important things those who are aiming to lodge their tax return now can do are
be prepared, and ask questions.
“Prepare a list of income and expenses ahead of either lodging your own return or visiting your tax agent,” he said.
“If in doubt about what income you need to declare or expenses you can claim or need advice on how to minimise your tax, definitely seek professional advice from a registered tax agent.”
Thankfully, if you are looking to get in touch with a tax agent, this does give you an extension on the deadline to May 15, 2024 – but you still have to take some action.
“[You can push back the October 31 deadline] by contacting a tax agent prior to the deadline, and being added to their client list. Do this if you are not yet ready to lodge your return due to not having all relevant information, or you wish to delay an expected tax bill,” he said.
Cassidy Pearce is Parra News' entertainment journalist and beauty columnist. She is a graduate of the University of Technology Sydney.