The Etax Blog: Tax Tips for Australians

• Have a HELP Debt? Don't expect a balance or repayment statement from the ATO...

  Last Wednesday (03 April 2013), the Australian Tax Office (ATO) announced they will no longer issue an annual statement for Australians with a HELP or Financial Supplement debt.

  Apart from making it harder to keep track of your outstanding government debts, these changes make it harder for you to estimate your expected compulsory repayment amount on your tax return.

  Fortunately, there are still a couple of ways to get an updated balance on your HELP account…

  Read more...

• Do you have lost super waiting to be claimed?

  It is estimated there are Billions of dollars in unclaimed super floating around Australia’s funds – and 50% of Australian workers have at least some super that’s gone astray. 

  Every week we have new clients who tell us that they’ve lost track of their super. Each new job they take has a different superannuation provider and as years go by, they simply lose track of it all. As for finding their old super in other funds, they don’t know where to start.

  Does this sound like someone you know?  It might even be you! 

  There is any easy way to check if you’ve got lost super waiting to be claimed...

  Read more...

• ATO Collects Your Financial Information to Snare Tax Cheats in 2013

  Did you know that the ATO can access information from YOUR employer, bank, super fund, credit card, insurance funds, government departments and more?  They have powerful ways to check that the information you’ve declared on your tax return is correct.  

  In 2011-12 the Australian Tax Office intercepted and blocked about 8000 inaccurate or fraudulent tax returns and in 2013 they’re looking to increase these numbers.

  Read more...

• Tax free entitlements for Australian Defence Forces in Afghanistan

  If you’re a member of the Australian Defence Force who served (or will serve) in Afghanistan as part of Operation Slipper, you might not have to pay tax on the salary or allowances you earn during that deployment.

  The following table from the ATO shows which ADF deployments in Afghanistan are eligible to receive salary and allowances tax free:

  Read more...

• Motor Vehicle Data Matching in Full Swing

  In its sustained crusade against what they call the ‘cash economy’, the ATO has announced plans to collect the details of all individuals and businesses that have purchased or acquired a vehicle where the transfer and/or market value is $10,000 or greater in the 2011-12 and 2012-13 financial year.

  Why?

  The ATO plans to collect this data from state and territory motor vehicle registering bodies to match against taxpayer records and identify those who participate in the cash economy. That is, those people who do not declare all of their income or are deliberately avoiding their tax obligations.

  Read more...

• 23,300 TFNs Compromised Last Year

  The Australian Tax Office (ATO) has revealed that 
  23,300 Australians had their tax file number compromised in the 2012 financial year, up from 22,000 the previous year.

  In an effort to combat the rise in identity fraud and compromised returns, the ATO has embarked on an intensive audit campaign...

  Read more...

• ATO blocks $40 million of false payments

  In the past financial year the Australian Tax Office has reportedly blocked more than $40 million worth of payments that would have gone to criminals who committed identity theft. 

  While these figures show that the ATO’s crackdown on fraudulent returns is garnering results, somewhat worryingly, officials from the ATO have little idea about how much money they might have payed out on fraudulent returns. 

  A recent ninemsn freedom-of-information study found that in 2011-12 the ATO has intercepted nearly 8000 fraudulent returns...

  Read more...

• Changes you should know about in the 2012 tax return: Flood Levy and Schoolkids' Bonus

  With the 2012 tax season now in full swing, we’ve already fielded many questions on the various changes to the 2011-2012 individual tax return. Below we discuss two major changes you should be aware of – and don’t worry, they are quite simple!

  

  What is the flood levy?  Do I have to pay it?

  A one-time charge paid by taxpayers in 2012, the flood levy helps communities affected by natural disasters.  The levy funds reconstruction of essential infrastructure. 

  Read more...

• ATO Audit Process Keeps Taxpayers Honest

  The Australian Tax Office is cracking down on taxpayers who avoid paying part of their taxes.

  You may remember our August article about the ATO’s improved auditing systems. Since then, the ATO’s auditing process has been updated and refined.

  The ATO’s current targets are Australians who do business in a ‘cash only’ basis and people who over-inflate their deduction claims.

  New figures released by the ATO show that between July 2011 and January 2012, almost 1200 people were prosecuted AND convicted for tax offences.

  Read more...

• Need HELP? Tips About Repaying HELP Debts

  If you are one of many people who graduated university with a HELP (Higher Education Loan Program) debt, you may be unsure exactly how and when you are required to repay that debt. If you previously had a HECs (Higher Education Contribution Scheme) debt, that is now also known as a HELP debt.

  Repaying your HELP Debt

  If you have a HELP debt, you must start repaying it when your repayment income is above the minimum threshold set by the ATO. For the 2010-11 financial year the minimum threshold is $44,912.

  Your repayment income is the total of the following amounts...

  Read more...

• ATO Continues to Improve its Auditing Process

  This tax season, the Australian Tax Office (ATO) is using more advanced computers to detect suspicious and fraudulent tax returns.

  ATO director Ross Barns explains that their auditing system continues to be refined in an effort to effectively handle the 12 million+ individual tax returns they process each year.

  Currently, a series of 20 computer models are run on every tax return, with flags raised when taxpayers’ data looks be suspicious.  

  Read more...

• Tax on Interest Income could be slashed by 50%

  

  In the 2010-11 Budget, the Federal government released a discussion paper that should lead to a future 50% tax discount on Interest Income.

  Aimed at giving relief to low and middle income earners, Assistant Treasurer Bill Shorten claims the discount will benefit up to five million everyday Australians.

  Set for introduction in the 2012-2013 financial year, taxpayers will pay 50% less tax on any Interest income received up to $500. In the 2013-2014 financial year, this figure will rise to $1000.

  Read more...

• Do you sell on eBay? The ATO is watching.

  

  As the online retail sector continues to outpace traditional bricks and mortar stores, the Australian Tax Office has announced it will look carefully at eBay retailers this tax season.

  When eBay was launched in 1999 it was simply an auction site where people could sell household goods they no longer needed. This has changed dramatically over the past 12 years, with eBay sellers now mostly promoting new goods – and the ATO is aware of this.

  Read more...

• Did you receive a letter about work expenses from the ATO?

  

  Recently 300,000 Australians received a letter from the Australian Tax Office offering help with claiming work-related expenses. Some of our clients contacted us because they were confused by the letter and wanted to know if they were going to be audited . Let’s clear up any misconceptions about this ATO letter.

  So what does this letter mean for me?

  This letter is nothing to worry about! 

  It is part of an ATO education campaign... 

  Read more...

• Taking Care Of Your Taxes in 2011: The Facts!

  

  With July 1st fast approaching, many people are starting to think about how they wish to prepare their 2011 income tax returns. Recently the Australian Tax Office (ATO) has released details of a comprehensive study of the 12.3 million people who lodged their tax return in 2009. You’ll be surprised at the results.

  Key Statistics

  • Out of 12.3 million people who lodged their tax return, 71% used a registered tax agent like Etax Accountants and Etax.com.au.
  Read more...

• Are you likely to be audited this year?

  

  The ATO identifies key targets for tax audits in 2011

  Each year the ATO releases a list of risks they have identified under their compliance program.  The list highlights issues the ATO will pay special attention to in their checking and auditing activities. Take a  look below to see if any of the issues relate to you:

  • You are not lodging a tax return...
  Read more...