Tax FAQs
Some individuals don’t have to lodge a tax return it depends on your situation which can differ due to age, income and expenses. Your best option is to come in and have a chat with a Power2 Tax Consultant to get their view on whether or not you need to lodge a return.
At Power2 we lodge your return electronically within 24 hours of completion.
The ATO reports that most electronically submitted lodgments take around two weeks to process, however some lodgments require manual processing and may take up to a month to issue.
While you are welcome to contact Power2, the quickest and easiest way to check the progress of your tax is by using one of the ATO’s online search options.
For the 2019 year, your employer may be reporting your tax and super information directly to the ATO meaning you may not receive a payment summary at all. As part of our preparation for your tax meeting we make sure to gather and prepare as much of your information from the ATO and other sources as we can, including Payment Summaries and Private health information if they are available.
If you are missing one or more of your Payment Summaries from previous years your best option is to contact that employer to see if you can get another copy. In the case your employer cannot supply a payment summary, check with Power2 and we will assist you.
In most cases, fees can be taken from your refund. – Once the refund is released by the tax office our payment is deducted and the balance is forwarded to your bank account. Please be aware that there is an additional administration fee of $40 to use the fee from refund service.
Power2 can prepare and lodge as many previous years returns for you as necessary. If you do have several years tax returns to be completed, please let us know at the time of booking so we can allocate the correct amount of time for the processing of returns.
If you are lodging your own tax return with the ATO it is due by the 31 October each year, however, if you are a Power2 client you may benefit from our lodgement extension facilities meaning you have more time.
The ATO will penalise late lodgements through fines and interest charges so its always best to have your return lodged by the due date.
No, to claim any work-related expense you must have spent the money yourself and not received reimbursement from your employer. The expense must relate to the income you earn, and you must have a record to prove it.
If the expense was for both work and private purposes, such as usage of your private car, you can only claim the work-related portion of the expense.
Yes, You are able to claim expenses incurred in the purchase, repair or replacement of any tools and equipment you use working in the trade than you earn your income in. You can also claim the cost of insuring these items and any loan interest you paid on money you borrowed to buy these items.
If the cost of the tools or equipment, either as a set or an individual item, cost more than $300 these items will need to be depreciated, meaning an amount will to be claimed every year for that items effective life.
If your business has an annual turnover of $75,000 or more, or you wish to claim fuel tax credits, or you are a taxi driver you are required to register for GST. There are times whoever when, even if your estimated turnover is less than $75,000, there may still be some benefits in registering.
Talk to a Power2 tax consultant who will assist you with these decisions and your GST application.
The secret to minimising your tax bill is not leaving your questions until after the end of the financial year.
Your Power2 tax consultants are available throughout the year to assist you with tax preparation and planning to ensure you have the most current information regarding the most effective way of saving tax for your business.
If you are leaving Australia to travel overseas and you are not intending to be back before the due date for lodgement of your return – 31 October, contact Power2 to arrange for an extension of time to lodge.
Previously, employers were required to supply a payment summary within 14 days of the end of the financial year but from the 2019 year, your employer may be reporting your tax and super information directly to the ATO meaning you may not receive a payment summary at all.
As part of our preparation for your tax meeting we make sure to gather and prepare as much of your information from the ATO and other sources as we can, including Payment Summaries and Private health information if they are available.
If you are an individual, you must keep proper records relating to your tax affairs for at least five years from the date you lodged your tax return. You must keep all records, receipts and other documentation you used to prepare your tax return. If you are claiming deductions, you must keep written evidence to verify your claims for those deductions.
If you have a small business, you must keep proper records relating to your tax affairs for at least five years from when the business record is prepared or the transaction is completed, whichever occurs later. If at the end of the five years period, you are involved in a dispute with the Commissioner (an audit, for example), the five year period is extended.
If you own an asset which will be subject to capital gains tax on disposal, you will need to keep records covering the entire period of ownership until 5 years after lodgement of the tax return recording the disposal of the asset.
If you use information from your records in a later tax return, you may have to keep records for longer. So, if you carry forward a tax loss, you must keep the records until the end of any period of review for the income tax return in which the loss is fully deducted.
If you have no other assessable income you do not have to lodge a full tax return. It is always best to be sure so contact Power2. We can complete the Refund of Franking Credits for Individuals form at a substantial discount to the price of a normal return.
All income, whether it be government assistance payments such as Newstart and Austudy must be declared on your tax return as the tax rate applied is based on your total income for the year. You may be entitled to an offset to ensure that no tax is payable on that benefit income.
There is no limit on the amount claimed as expenses each year provided that; the expenses are necessarily incurred in earning your income, must be work-related and you can supply receipts to substantiate the expenditure.
Our Power2 Tax Consultants are happy to advise you on the appropriate record keeping which will ensure you maximise your allowable deductions claims.
If you owe tax and lodge your return late, any amount owing will be payable on 21 November this year and a general interest charge will be calculated from then until payment is made. The ATO may charge a penalty of $170 for every 28 days that the return is outstanding. Unless you use a registered tax agent, you have from 1 July until 31 October to lodge your return. If you need an extension of time either contact the ATO or Power2 for assistance on here.
Fees paid to a registered tax agent for the preparation of your return, amendments and generally handling your tax matters are all deductible. Registered tax agents are the only people legally able to receive payment for the preparation of tax returns.
Your return must contain all relevant income information, so if you are missing a payment summary which is not available through the ATO prefill system you can supply a letter from your employer detailing the information from this summary or review your pay slips for that period you worked and use those figures.
If payment summary details cannot be obtained from an employer a Statutory Declaration may need to be completed. One of our Power2 Tax Consultants will be able to assist you with assessing this information for you.
A payment summary can only be included in the year to which the income earned relates to. If you have discovered a payment summary that has not been included, you will need to submit a amendment to that year’s tax return. Our Power2 Tax Consultants can assist you with lodging an amendment if this has occurred.