The boring old tax return has come a long way since the old ‘Tax Pack’ days and the legislation just keeps on getting bigger and more complex as the years roll on. The Government has recently announced the roll out of the new MyTax system. Users all over Australia will be receiving text messages to inform them over the coming weeks. There has been a fair bit of controversy along the way too, like serious security concerns and lodgement issues for first time users, like anything from the government it’s not without its shortcomings.
So we just wanted to let you know what it means for you by answering some likely frequently asked questions (FAQ’s) to help you make an informed decision, before you jump in.
What is MyTax?
MyTax will enable tax returns to be submitted via a smart phone, tablet or on a computer through a web browser. This means that millions of Australians will simply have to review and modify (if required) the pre-filled information online before lodging their return – bypassing the need for paper, pens and software downloads and complicated questions. But will it bypass the need for an Accountant?
- they were an Australian resident for the financial year;• they have income only from salary, wages, allowances, bank interest, dividends and/or Australian government payments;
- their only deductions are for work-related expenses, expenses related to interest or dividend income, donations and/or the costs of managing their tax affairs; and
- the only offsets they want to claim are the senior and pensioner tax offset and/or zone and overseas forces tax offset.
- Taxpayers will receive an SMS or email from the ATO advising that MyTax may be right for them.
The following Taxpayers are ineligible to use MyTax if they have:
- business income or losses
- rental properties
- partnerships or trusts, including managed investment trusts
- capital gains or losses
- foreign income
- lump sum payments
- employee share schemes
- superannuation income streams and superannuation lump sum payments.”
It’s important to note that to be eligible you must adhere to ALL the pre-requisites, however if they fall under ANY of the ineligible factors they cannot use MyTax or even verify your identity to be able to lodge your return with them.
Do I still need my accountant?
First and foremost, if you are not eligible to use MyTax it would still be beneficial for you to utilise your Business Edge trusted accountant. Even if your tax return is relatively straight forward, effective tax planning can ensure that your tax return outcome is maximised to keep more money in your pocket, both this year and long term. MyTax is an incredible improvement for tax lodgement, however we want to make sure that you are financially fit and ready for anything. You can always call us to make a face to face appointment that suits you, if you need to we could also come to you as mobile accountants, we can go anywhere.
We know Tax and we know how to best ensure your getting the deductions you are allowed and can give advice on how to ensure your setup for the future. Not every transaction is the same and not every ones circumstance is simple, sometimes a conversation with an Accountant at Business Edge could give you a step up to a long term Tax and Wealth Plan for secure and stress free future.
I’m pretty sure I can use MyTax – Should I?
Before you jump in with both feet, have a quick chat with us to ensure your needs are completely covered by MyTax. If MyTax is all you need we’ll likely recommend using it as according to the ATO MyTax is supposed to be quite easy to use. However, easy doesn’t always mean that it’s the best, for example, MyTax may not claim ALL valid deductions, without the help of a skilled tax accountant you could be missing out a a bigger Refund. What happens when things go wrong, who can you turn to?
It’s a Trap?
The Tax Law is a complex area to understand and Tax Returns can be a difficult process to undertake and fill it all out correctly. Its what we at Business Edge Accountants do for a living! We’re here to look after you, and your interests in order to take the worry out of the process. The ATO targets different groups of people in order to audit them them yearly and this year they are planning to match over 640 million transactions in 2013-14. Last financial year, the ATO undertook 450,000 reviews, and audits of individuals. It used data matching to raise $973 million in Tax Revenue from individuals being Audited.
Who uses Accountants Like Business Edge?
Most Australians still utilise a trusted and Registered Tax Agents to prepare their Income Tax Return correctly and should Trust them more then the Governments “free Tax Return” options to ensure you get your Maximum Tax Refund this year.
Business Edge Accountants are a locally Owned and run business, we are here to help and make the process as simple and easy and possible.