Hasty lodgers twice as likely to make mistakes, ATO warns
The Tax Office is warning taxpayers against rushing to lodge their tax returns on 1 July.
.
The ATO says it is cracking down on incorrect returns this tax time, with taxpayers who rush to lodge their returns on 1 July twice as likely to make mistakes.
Assistant commissioner Rob Thomson said the ATO saw “lots of mistakes” from early lodgers, particularly those with multiple income sources.
Forgetting to include interest from banks, dividend income, payments from government agencies and private health insurance details were among the most common issues.
“Tax time is not a race, and there is a much higher chance that your return will be missing important information if you lodge in early July.”
The ATO identified taxpayers’ failure to include all income when lodging as one of three focus areas for tax time.
Earlier this month, it warned against landlords inflating claims for rental deductions and individuals incorrectly claiming work-from-home expenses.
Rental deductions would be under the microscope after the ATO found that nine out of 10 rental property owners got their tax returns wrong, with the most common issue being incorrect repairs and maintenance claims.
Another target for the ATO will be work-related expenses in light of recent changes to WFH deduction rules.
The ATO said taxpayers could avoid making mistakes in their tax returns by waiting until late July onwards to lodge, when most information from employers, banks, government agencies and health funds would be automatically loaded into tax returns.
“We know some prefer to tick their tax return off the to-do list early and not think about it for another 12 months, but the best way to get it right is to wait just a few weeks to lodge,” Thomson said.
In the meantime, the ATO said taxpayers could spend time gathering all necessary records, ensuring details were up to date and reviewing the occupation guides on the ATO website to check their claims were accurate.
“Take some time to make sure all your details are correct. This includes your contact details, address, and bank details. Updating these after you lodge may cause delays,” Thomson said.
Once information was pre-filled and finalised by employers, income statements would be marked as “tax ready”.
“You can check if your employer has marked your income statement as ‘tax ready’ as well as if your pre-fill is available in myTax before you lodge. Once the information we collect is available, all you need to do is check it and add anything that’s missing,” Thomson said.
Errors made in returns could be rectified via myGov or by speaking to a registered tax agent.
“People sometimes make mistakes,” the ATO said.
“Taxpayers that realise they have made a mistake can fix errors or omissions in their tax return once their initial lodgment has been processed through the ATO online amendment process.”
Christine Chen
25 June 2024
accountantsdaily.com.au
Hot Issues
- Time for a superannuation check-up?
- Scam alert: fake ASIC branding on social media
- Millions of landlords the target of expanded ATO crackdown
- Government urged to exempt small firms from TPB reforms
- ATO warns businesses on looming TPAR deadline
- How to read a Balance Sheet
- Unregistered or Registered Trade Marks?
- Most Popular Operating Systems 1999 - 2022
- 7 Steps to Dealing With a Legal Issue or Dispute
- How Do I Resolve a Dispute With My Supplier?
- Changes to Casual Employment in August 2024
- Temporary FBT break lifts plug-in hybrid sales 130%
- The five reasons why the $A is likely to rise further - if recession is avoided
- June quarter inflation data reduces risk of rate risk
- ‘Bleisure’ travel claims in ATO sights, experts warn
- Most Gold Medals in Summer Olympic Games (1896-2024)
- Estate planning considerations
- 5 checklists to support your business
- Are you receiving Personal Services Income?
- What Employment Contracts Does My Small Business Need?
- The superannuation changes from 1 July
- Hasty lodgers twice as likely to make mistakes, ATO warns
- Landlords who ‘double dip’, fudge deductions in ATO crosshairs
- Most Spoken Languages in the World
- Tax Time Checklists - Individuals; Company; Trust; Partnership; and Super Funds
- Compare your business
- 2024 Year End Tax Planning Guide (Part 2)
- ATO to crack down on rental income, WFH deductions this tax time
- How to Draft a Standard Form Contract
- GST, PAYG withholding a ‘significant portion’ of $50bn tax debt
- ATO changes will make it harder for over 42,000 small businesses.
- The Deadliest pandemics in History
Article archive
- April - June 2024
- January - March 2024
- October - December 2023
- July - September 2023
- April - June 2023
- January - March 2023
- October - December 2022
- July - September 2022
- April - June 2022
- January - March 2022
- October - December 2021
- July - September 2021
- April - June 2021
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015
- January - March 2015
- October - December 2014
What our clients say about us