Take Your Time: Getting Your Return Right

Did you know that if you lodge your tax return in early July, your tax return’s chances of being flagged as incorrect by the ATO are doubled?

While hitting submit immediately on 1 July 2024 might be tempting, making sure your 2023-24 tax return is correct and compliant may need more time.

Here is a list of the common mistakes the ATO is eyeing which could cause returns to be flagged this year.

Include All Reportable Income

Including all sources of income, such as interest from banks, dividend income, and payments from various sources, is crucial to avoid discrepancies and potential scrutiny from the ATO. Failing to include such income can increase the likelihood of errors being flagged by the tax office.

Sometimes, this information may not be immediately available in early July. Waiting until later in the tax season to lodge returns can help ensure that all relevant information is pre-filled, reducing the risk of errors or omissions.

Claiming Expenses, Offsets Or Deductions Correctly

Make sure that any offsets or deductions you claim can be made for the 2023-24 financial year.

Some deductions (such as for working from home) may have changed how they are calculated. Using the incorrect method could result in your return being flagged.

In others, eligibility, deadlines or specifications may have changed between when the measures were introduced and now.

It is advisable to be careful when claiming for deductions or expenses on your return for the following:

• Rental property-related claims (especially relating to maintenance)
• Car expenses and deductions
• Self-education expenses
• Working from home deductions
• Depreciating assets

Superannuation

If you intend to claim a tax deduction for personal contributions to your super fund you MUST give them a notice of the amount you intend to claim, and they MUST acknowledge it before you lodge your income tax return.  It is also important that you don’t roll your superannuation to a new fund before you have done this, or you will lose your ability to claim a tax deduction.

Making A Mistake (Deliberately)

In some cases, incorrect reporting can be deliberate. While many errors may be unintentional, it’s essential to avoid deliberately claiming expenses one is not entitled to. Such actions can result in serious consequences, including penalties and legal repercussions.

Be diligent during this tax return season to ensure that one of the most important documents they complete this year is filled out correctly.

By carefully reviewing records, understanding tax obligations, and seeking guidance, taxpayers can minimise errors and ensure compliance with tax laws.

Accuracy and honesty are paramount when dealing with tax matters, and taxpayers should strive to uphold these principles to maintain their financial integrity and avoid potential issues with tax authorities.

Want assistance with ensuring your tax returns are completed accurately and correctly? Start a conversation with us today about how we could help you.

IMPORTANT NOTICE

This blog post contains general information only and has been prepared by Allworths without reference to your objectives, financial situation or needs. Allworths cannot guarantee the accuracy, completeness or timeliness of the information contained here. By making this information available to you, we are not providing professional advice or recommendations. Before acting on any of the information contained here, you should seek professional advice.