Income Tax Return What You Need to Know
Now’s the time you should start preparing your income tax return, as there have been some changes by the ATO this year lets run through a reminder of the recent changes so you can claim everything for a great tax return this year!
We’ve also created an Income Tax Checklist to make your life a little easier, you can download it at the bottom of this blog!
From 1 July 2019, health insurers are no longer required to send private health insurance statements. Previously they were required to send statements by 15 July each year, it is now optional to send this information.
Private health insurance information will be available in the pre-fill report, usually by mid-August. If it is not populated by then you may need to request a statement from your health insurer.
Low and middle-income tax offset
You may be eligible for an income tax offset if:
• you are an Australian resident for income tax purposes
• your taxable income is in the appropriate income range.
You don’t have to do anything to claim this offset. It will be calculated as part of your Income tax return estimate. If you lodged before the changes were passed on 4 July 2019 the ATO we will automatically amend assessments – no action will be required by you. The offset can only reduce the amount of tax you pay to zero and it does not reduce your Medicare levy.
If an employer reports through Single Touch Payroll they are not required to provide a payment summary to you/their employees.
Income statements will replace payment summaries. You should be able to access your income statements through ATO online services via myGov, at any time. You should have received a notification from the ATO in your myGov inbox when your income statement is 'Tax ready' and use it to complete your tax return. If you don’t receive the notification or you can’t access MyGov contact the ATO for a copy of your income statement.
Claim work-related expenses
Think about expenses that you pay out of pocket (that’s expenses that your employer doesn’t pay for) as long as they are incurred in the course of performing your work (for example, if you work from home often you can claim part of your home internet bill), they can be claimed as deductions. But to make a work-related claim you must have spent the money yourself and haven’t been reimbursed, it must directly relate to earning your income and you must have a record to prove it.
There are hundreds of things that may be eligible to claim as work related expenses, here are a few that are often forgotten:
• Self-education to improve skills for your career
• Travel expenses including accommodation/parking/some meals
• Sun protection if you work outside (but not cosmetics)
• Equipment and tools
• Office furniture
• Professional libraries
Line entry deduction data
The ATO are now collecting more information about the deductions you make. The written information entered into the tax return will now be sent to the ATO along with the financial data.
Download your Income Tax Checklist by clicking the above image or this link - http://bit.ly/Income-Tax-Checklist
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We have an easy option where you share your documents with us, we will contact you with any queries and then you get an email telling you it’s all done and ready to sign.
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