5 reasons why lodging your 2019 tax return early isn’t a good idea

People generally rush to prepare their tax returns so they can get their tax refunds as soon as possible. Some may be able to have them lodged by the end of first week of July, so they can book a holiday overseas soon!

However, this year, it may be worthwhile to slow down a bit in lodging your tax returns.

ATO’s delayed commencement in processing 2019 tax returns

The ATO has announced that they will not commence processing 2019 tax returns until 5 July 2019 and refunds won’t be issued until 16 July 2019.

On top of this, there may also be delays initially due to the amount of tax returns lodged in the first week of July. The ATO is aiming to finalize 2019 tax returns within 12 business days but there is no guarantee.

Single Touch Payroll: how it affects your tax return lodgement

Single Touch Payroll (STP) is rolled out for employers to electronically lodge the payroll information directly to ATO. While it was not compulsory for all employers to be compliant with STP by 30 June 2019, most of the employers would be STP compliant by that date. As a result, the way your wages information is delivered to you may be different.

The ATO also allows employers to finalise their STP information until 31 July 2019 – which means that your payroll information may not be finalized by the time you prepare your tax return, and that what you have declared may be incorrect and an amendment is required later on.

Bank interest information incomplete

For returns that were lodged in July, we often find missing bank interest information when preparing tax returns and as a result it triggered ATO’s amendment, causing inconvenience to some clients.

Banks generally submit interest information to the ATO in July or August. Unless you have a very good idea about how much interest you earned in each of your bank accounts, it is a good idea to wait for the banks to submit their information before finalizing your return.

Investment funds annual tax statements are not available until August

Where you have investments in public managed funds, their annual tax statements are generally available late August, lodging early in July means you have omitted information in your tax return.

Proposed tax cuts not passed yet

In the 2019/2020 Federal Budget, the Government announced a series of personal income tax cuts, that will impact your 2019 tax return. However as these tax cuts are not likely to be passed until August 2019 (earliest), any tax returns that are lodged prior to the tax cuts are enacted will continue to use the current income tax offset amounts. It is expected that the ATO will automatically amend the returns to account for the extra income tax offset and provide refunds to individuals.

Too hard to deal with?

We are here to help. We have years of experience assisting individuals in preparing and lodging their tax returns and ensuring they are claiming their deductions correctly. Talk to us (or email us) and see what more we can do for you.

Payroll tax – the basics

What is this?

Payroll tax is a tax assessed based on wages paid or payable an employer to its employees. It is a state tax –each state and territory has their own legislation with varying rates and thresholds.  It is also a self-assessed tax, which means that it is the employer’s responsibility to ensure these obligations are met.

Below are some of the basics of payroll tax that every business owner should be aware of.

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Private health insurance – is it worthwhile?

From time to time we get questions from clients where they ask if they should have private health insurance. While it is a very personal decision, sometimes it may make a difference to your tax position when it comes to preparing your tax return.

Let’s dive into some of the common questions asked!

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Budget Update 2019 – what you need to know NOW

The Treasurer has delivered the Federal Budget 2019 last night (2 April 2019), he has provided some good news to individual taxpayers and small business owners.

It is worth noting that most of the announcements he made in relation to income tax are related to future income years, there are only two announcements that will take into effect immediately. In this article we go through the ones that are affecting the 2019 financial year only.

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Another year has gone by … FBT Year Ends on 31 March – what you need to do

The 2019 FBT year ends on 31 March 2019. (Really?) Yes, that date is not an error as the Fringe benefits tax (FBT) year runs from April to March (unlike the Australian tax year which runs from July to June). It can be confusing at times.

What is FBT?

FBT is the short form for Fringe Benefits Tax. It is a tax imposed on employers who provide certain fringe benefits they provide to their employees, including their employees’ family and associates.

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