It’s the time of the year again when focus is back on the compliance and ensuring you and your related entities meet it’s tax related obligations.
With the increased ability of individuals being able to manage their tax affairs online without hiring a registered tax agent, there is an increased level of incorrectly lodged tax returns that require ATO adjustments.
According to ATO these 5 are the most common mistakes in 2018:
- Leaving out some of the income – whether it’s a one off project, casual job or interest earned, all income should be included on your tax return
- Claiming deductions for personal expenses – travel to and from work, personal items of clothing, personal phone calls etc
- Forgetting to keep receipts for expenses claimed – every expense claimed on the tax return needs to substantiated. In most cases records need to be kept for 5 years.
- Claiming for something never paid for – assuming everyone is entitled to a standard deduction.
- Claiming personal expenses for rental properties – either claiming deductions for times when they are using their property themselves or are claiming interest on loans used to buy personal assets like a car or boat.
If you have made on of these mistakes, don’t panic. Get in touch with a registered tax agent and they can lodge amendment to the tax return on your behalf.
Make no mistake, the tax law in Australia is very complex and with the help of registered tax agent you can have the peace of mind that all your tax affairs are in order.
At Financial Goddess we are registered tax agents in Australia and hold International Tax Law accreditation, which compliments our Virtual CFO and International Business Consulting services for our clients worldwide.