3 things you're doing wrong at tax time
With Tax Time looming, it pays to be prepared. For most people, their annual tax refund is the single biggest lump sum payment they receive each year.
Unfortunately not all tax payers will do it correctly. With the ATO conducting over 45,000 audits each year and adjusting near $1 billion in over claimed expenses.
So what should you do to maximise your tax refunds?
1) Stop waiting til tax time
Missing information or proof of purchases is the biggest cause of overpaid taxes. Keeping your records organised in a tax folder throughout the year is the simplest way to ensure you have everything you need at tax time.
2) DIY
While it is getting easier to lodge your tax return yourself, the reality is unless you have the relevant up-to-date knowledge on Australian TaxLaw, do you really know what you can claim? The best way is to engage with your local tax accountant. The relatively small fee each year (which istax deductible) should return you more in tax tax savings than the fee itself!
3) Not lodging on time
Failure to lodge on time penalties are set to increase to a maximum of $1050.00 from July 1 2017. Why put your refund at risk by lodging on time?
In a nutshell:
- Get organised,
- Ask for help and
- Get it done as soon as possible
So you can enjoy that moment the refund hits your bank account!