Income Tax Breaks could mean more $$$ in your pocket!

With the government tax forum drawing to a close last week, one tax breaks mean more money in your pocket significant proposal on income tax seems to have gained some traction.

While not committing to a specific timeframe, Treasure Wayne Swan explained that government is in the planning stages of raising the tax free threshold to $21,000 – a move that would also abolish the low income tax offset and go a long way towards simplifying income tax in Australia.

As part of its Carbon Tax compensation package, the government already plans to increase the tax free threshold...

Government Will Match Your Tax-Deductible Donations

Kevin Rudd announced a dollar-for-dollar ‘donation matching’ program with the Government set to join Australians fighting the famine disaster in Eastern Africa

With the UN estimating 750,000 people could die in the Horn of Africa in the next four months, the Federal Government is joining forces with caring Australians in a bid to save lives. The Government has promised to match every tax-deductible donation Australians give to aid efforts in the drought-stricken Horn of Africa.

"We set no limits. However much they raise, we're serious about it: We'll match it dollar for dollar," he said.

This is a key moment to make a tax-deductible donation to one of the many charities involved in famine relief...

Australians Want the Wealthy to Pay More Tax

60% of respondents in a recent ACTU survey would support raising taxes for wealthy-to-pay-more-tax-etax-accountants Australia’s highest income earners.

Major findings of the ACTU study include:

Support for raising taxes for people who earn more than $200,000 per year.

Average ATO tax refund now more than $2,300

With close to 2 months of the 2011 tax season complete, the ATO has released interesting figures on its average tax refund amounts and processing times. Average ato refund. Etax Accountants blog post

In the latest progress report released by the ATO, which includes figures up to 17 August, the number of returns received by the ATO since 01 July, 2011 currently stands at 4,117,000. Of those returns, 3,178,000 have been finalised with 2,861,000 (90%) of individuals receiving a refund.

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.

Tax on Interest Income could be slashed by 50%

interest growth will be easier after interest tax cuts

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.

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.

Generation Y could be losing thousands in tax refunds!

A new Bankwest survey found that many of Australia’s tech-savvy Gen Ys could be missing out on higher tax refunds from the ATO.

The report found that 53% of Gen Ys submit their own return in the hope of saving themselves the Accountant fees.

The Bankwest report says that while the younger generation feel more comfortable doing their own taxes, they might miss out on a long list of deductions available to them – deductions that an accountant would identify.