5 tax tips to max cashback on your property investment
With tax season knocking at the door and the economy sailing into rougher waters, here are strategic ways property inves...
The deadline for lodging tax returns for FY 2020-2021 is just around the corner. Are you ready to lodge yours?
It’s tax season again, and the Australian Taxation Office (ATO) has released a timely reminder for Australians that the deadline for filing a tax return or registering with a registered tax agent is this week.
Paying taxes may not be a top-of-mind priority for some after enduring multiple lockdowns, but the benefits of lodging your tax returns on time far outweighs doing it after the deadline.
According to the ATO, “over $20 billion has been refunded to more than 7.2 million taxpayers so far” this tax season.
The ATO also made sure that systems are in place to help taxpayers have a seamless experience when lodging their returns. You can complete the process for as short as 30 minutes.
ATO’s Assistant Commissioner Tim Loh reassuringly said: “If you’re planning to DIY your tax but haven’t got around to it yet, don’t worry. For people with simple tax affairs, lodging through our myTax service can be done and dusted in under 30 minutes. Most of your income and personal details will already be there; simply confirm it’s correct, add any additional income and claim your eligible deductions.”
Availing the services of a registered tax agent is also an option. They will need access to your details and may need some time to put things in order; thus, it would be best to get in touch with an agent before the end of this week.
For a hassle-free transaction, here are helpful tips for rental property owners when lodging their tax returns:
1. Check accuracy of required data
Sometimes, the bumps in the process in lodging returns are due to common mistakes such as bank account details that have not been updated, leaving out income that needs to be included, or adding ineligible amounts for deduction. Make sure to double-check these details to avoid delays.
2. Practice good recordkeeping
Storing business records is a necessary part of ensuring that a business is running smoothly. Keep receipts for all expenses you wish to deduct, make certain that you only claim the appropriate expenses, keep your tenant leases in proper order, and report your rental income.
Mr Loh suggested “to take photos of your receipts and upload them directly to your tax return using the MyDeductions tool in the ATO app. Rental income data is received and matched from a variety of sources, including sharing economy platforms and rental bond authorities”.
3. Monitor the status of your refund
The ATO has a transparent process when it comes to refunds.
“If you want to keep an eye on how your return is progressing, you can do this by logging into the ATO app or via myGov,” Mr Loh said.
Refund claimants will receive an SMS towards the end of the refund process that states the estimated date when they will receive any refunds that are owed to them.
“Four out of five people receive a refund, with most refunds issued in less than two weeks. This process can’t be sped up, even if you call us,” Mr Loh explained.
But do take note that the amount of any refund will be determined by each individual’s circumstances as well as the amount of tax paid throughout the year.
If you’re still in a quandary about lodging your tax returns, Mr Loh is encouraging you “to contact us or speak with a registered tax agent as soon as possible”.
“If you’re delaying lodgment due to an expected bill you can’t pay right away, we encourage you to lodge this week. Even if you can’t pay on time, lodging your tax return shows us that you’re doing your best to meet your obligations,” he reassured taxpayers.
To assist in your tax affairs, Mr Loh said that the ATO could work with you to create a payment plan that is specific to your needs. Taxpayers can easily set up their own payment plan online depending on how much they owe. All that it takes is for you to reach out to them so they can offer the right service for your situation.