The topic of tax return can be appealing to most people especially if they expect that they are going to receive money from it. There are some people who find it quite confusing because of how complex it is. The Australian Tax Office is very careful in processing the tax returns and they are very meticulous when it comes to mistakes. They get the help of data matching systems so that they can make sure that they process tax returns quickly. With these systems, they can automatically find mistakes or discover inaccuracies.
Inaccuracies in your tax return or problems with it can push the ATO to do auditing. This will mean that there would be delays in the processing of your tax returns. The ATO can also ask for documents or evidence on the claims that you file to them. If you want your tax return to be processed quickly, then you should avoid these mistakes.
1. The use of estimates – The claims you file and the figures you write down on it should never be guesswork or estimates. You should really be exact in what you list down so that there are no discrepancies. The ATO gets their figures at their exact amount and they do not do estimates, which is why you shouldn’t do estimates too. Even if the difference between what they computed and what you provided is around a couple hundred dollars off, an audit may be initiated. So before you complete your form, you should wait until the official PAYG is released. The actual value on the receipts should also be used on the deduction claim.
2. Not Declaring All Sources Of Income – If your income comes from overseas, it doesn’t exempt you from declaring it. It is one of the rules in Australia to declare your income no matter where it is coming from. Even if you just worked for a few months in a year in another country, you should still declare this. If you don’t your records would be inaccurate.
3. Wrong Rental Property Deductions – There are different circumstances when you may file a wrong deduction and this will certainly cause your claim to be not approved. You shouldn’t file for a claim on properties that are not available for rent such as your vacation houses. In times when a friend or a family member stays in one of your rental houses or rooms for free, you should not include that time with the claims you apply for. Joint ownership of the property also means that the expenses should be divided into two too. Half of it would be included in your tax refund and the other half on your husband’s or wife’s tax refund.
4. Lack Of Evidence – Don’t expect your claims to be approved if you don’t have evidence that will back it up. Receipts should be kept so that if the ATO has any questions, you would be able to show them the receipts. Records should also be kept and be made complete to make sure your claims will be approved.