TAX TIME MYTHS DEBUNKED
- I plan to use an agent this year so the deadline doesn’t matter: If you used a registered agent, you need to be on their books by 31 October, regardless of the deadline. If you register with an agent after the 31 October deadline, your lodgement will still be considered overdue and penalties may apply.
- I didn’t earn any money through my business this year, so I don’t need to declare: Even if you had a nil or negative income from your business, you’re still required to declare this to the ATO.
- I’m on Centrelink benefits so I don’t have to lodge a return: If you’re a Centrelink beneficiary, you are still required to lodge tax return for the purpose of calculating your Centrelink benefits.
- I earned less than the tax-free threshold of $18,200, therefore I don’t need to lodge a tax return: A lot of taxpayers get confused between paying no tax and actually doing their tax return. If you earn under $18,200 and didn’t pay any tax during the year, you can still declare your income to the ATO. This is done through a non-lodgement advice form and lets ATO know that you don’t need to lodge a return. If you earned under $18,200 and you DID pay tax (even if it was only $1), then you’re required to lodge a return even if you don’t want your excess tax payment refunded.
- I’m retired and not required to lodge anymore: Regardless of your age and working status, you have to lodge if you have received taxable income over the threshold.
Contact Expert Tax on 0404 667 909 or 1300 8 MY TAX (1300 869 829) for further assistance.
Like and follow our Facebook page for regular tips, updates and reminders.