Your top 20 tax questions answered

Posted on 2010-07-26

 

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SAME-sex couples, truck drivers and sales reps are in the Tax Office spotlight this year. Assistant commissioner Tracey Nicholson answers the top 20 most commonly asked tax questions.

When do I have to lodge my 2009 tax return?

If you prepare and lodge your own tax return, the deadline is Friday October 31 this year. If you use a registered tax agent, they have their own lodgement deadlines.

If you are using a tax agent for the first time, or you are going to use a different tax agent this year, you must contact them by Friday 31 October 2009.

What does e-tax pre-fill?

Pre-filling is a service the Tax Office provides to make it easier for you to meet your tax obligations and claim your entitlements. Pre-filling partially completes your tax return for you and all you have to do is review it and add any missing details

There are a number of categories that can be pre-filled when submitting your tax return through e-tax, from interest and dividend income to Medicare benefit tax statement details and Higher Education Loan Programme information.

In addition to the range of information which was available for pre-filling in 2008, the 2009 e-tax pre-filling service also includes:

• Private health insurance rebate details

• Rental property address details from your 2007–08 rental property schedule
• PAYG income tax instalments will be displayed as information for you to review , and
• Reminders of letters that we have sent you throughout the year in relation to your work-related expenses and whether you need to submit a schedule of work-related expenses this year.


I need receipts to claim deductions for work-related expenses?


You can claim up to $300 of work-related expenses without the need to have written receipts. Once your claim exceeds $300 you must have receipts for the full amount. However, you may have to prove you deductions if contacted by the Tax Office, so you should keep receipts for all your claims.


I am a truck driver and I have heard you are targeting people who work in my field, what does this mean?


Every year we identify several occupations with unusual patterns in their claims or claims that are outside of the norm for their industry.


This year we will be specifically focusing on people employed as truck drivers, sales and marketing managers, sales representatives, and electricians.


The most common incorrect claims by people in these occupations include expenses relating to:
insufficient documentation available to support motor vehicle and travel expenses, claiming Living Away from Home Allowance without proper documentation from the employer, claiming motor vehicle expenses on the basis that they are carrying bulky equipment, incorrectly claiming home offices, mobile phone and internet.


Where do I go to find out what I can claim?


The Tax Office has detailed guides which summarise what you can and can’t claim by occupation. These are available on the Tax Office website at www.ato.gov.au/occupations.


I donated to the Victorian bushfires and/or Queensland floods — can I claim a deduction in my tax return?


Yes, you can claim a deduction in your tax return. If you gave a ‘bucket donation’ you can claim a tax deduction equal to your contribution of up to $10 in your 2008-09 tax return without the usual need to keep a receipt.


This also applies to donations collected through third parties such as banks and retail outlets.


I have a rental property, can I claim rental property tax deductions?


The Tax Office website has useful and easy to read fact sheets that explain exactly what can and can’t be claimed as a tax deduction, including some useful examples. Visit www.ato.gov.au/rental for more information.


This is my first time lodging a tax return. What do I do?

Going online is the quickest and easiest way to find out about your tax and super obligations.


The Tax Office website contains information and tools for people starting out in the workforce or who are earning income from investments like shares for the first time.


For more information including what you can claim and how much tax you will pay, visit www.ato.gov.au/youth.


What is my notice of assessment sequence number? And where can I find it?


Your notice of assessment is an itemised statement which shows:
• your taxable income
• how much tax you have paid during the year and whether you owe the Tax Office money, or
• whether you are due a refund.


Your sequence number is printed on the top of your notice of assessment. You receive your notice of assessment after you lodge your tax return.


My partner and I are in a same sex relationship. How does this affect our tax return?


The Federal Government introduced reforms to remove discrimination to enable same-sex couples and their children to be recognised by Commonwealth law.


From 1 July 2009, all couples and families are to be treated the same way for tax purposes, regardless of gender. This may affect the information you need to provide in your 2009-10 tax return.


Do I need to include interest from a bank account?


Yes, you need to include bank interest in your tax return.


I sold a property this year, what are my capital gains tax obligations?


This will depend on your situation but you will need to declare any capital gains in your tax return.


The Tax Office uses data from state and territory revenue offices, managed funds, the Australian Stock Exchange and share registries to identify unreported gains on sales of investments. So make sure you report any capital gains or losses carefully in your tax return.


How is the Government’s annual contribution paid into my first home saver account?


If you have a first home saver account the Federal Government may make an annual contribution to your account based on your contributions throughout the year. You don’t pay tax on earnings on the account and you don’t need to declare any income from this account anywhere on your tax return.


However, if you’re not required to lodge a tax return, you will need to lodge a First home saver account – notification of eligibility form before the Government will pay any contributions. The form is available from the Tax Office website.


I made a mistake on my tax return, what do I do?


If you discover an error after lodging your return you should lodge an amendment to your return. If the amendment results in you owing tax then interest will be payable. Any penalty decision will depend on the facts of the case, but a first time mistake, particularly a low value one, will generally not attract a penalty.


Where’s my refund?


If you’re due a refund the quickest way to get it is to lodge using e-tax. Most people who lodge using e-tax receive any refund owed to them within two weeks.


How do I make a Family Tax Benefit claim?


As of 1 July 2009, Family Tax Benefit is no longer claimed through the Tax Office. All claims and payments will be made from the Family Assistance Office.


I am using a tax agent, how can I check if they are registered?


You can check if your tax agent is registered by asking to see their Certificate of Registration of Tax Agent, and confirm it by contacting the Tax Agents’ Board. Visit www.tabd.gov.au or call 1300 362 829.


Am I eligible to claim any of my child’s school expenses under the Education Tax Refund?


If you receive family tax benefit part A for children at school, you are eligible for the Education Tax Refund. If another payment prevents you receiving family tax benefit part A for a child, for example Youth Allowance, you may still be eligible.


The Education Tax Refund can help with primary and secondary school costs and is a refund of up to $375 for each primary school child’s eligible education expenses and up to $750 for each secondary school student’s eligible education expenses.


Can I get help to complete my tax return?


If you need help completing and lodging your tax return and earn under $40,000 a year you may qualify for ‘tax help’.


Tax help is a free community service run by Tax Office-trained volunteers and is designed to help low income earners complete their returns. To check your eligibility or to book an appointment at your nearest tax help centre call 13 28 61.


I run a business, can I get help with my tax affairs?


There are also a number of seminars and assistance programs available to help businesses stay on track. The small business assistance program is a free and confidential service consisting of assistance visits, seminars and phone support tailored to suit the needs of any business. Find out more on the Tax Office website.

Source: Daily Telegraph

 

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DISCLAIMER: Every care has been taken to verify the accuracy of the information contained herein, but no warranty is given or implied and prospective purchasers/ tenants are advised to carry out their own investigations. Details herein do not constitute any representation by the vendor. Lessor or the agent and are expressly excluded from any contract.