The deadline for Australians to submit this year’s tax return is fast approaching, prompting a warning from authorities.
Australians must lodge their 2022/2023 return by October 31, 2023 otherwise they could face a “stiff fine”.
Taxpayers have the ability to claim a range of working-from-home expenses and even a handbag if it has been used for work purposes.
The deadline only applies if a person is required to submit a tax return and if they choose to lodge it themselves without using a registered tax agent.
Most people who earn more than the tax-free threshold, currently at $18,200, are required to lodge a tax return.
Failure to submit a tax return results in a fine of one penalty unit (or $313) for every 28-day period that the tax return is overdue.
The maximum penalty for an individual is five penalty units or $1565.
To extend the deadline you can register with an accountant by October 31, which will extend the deadline to May 15 2024.
How do you lodge your tax return?
All you have to do is log on to the ATO website and most of the details including personal and income information should already be filled out for you.
You just need to check the information is correct, add any additional income, claim your eligible deductions and then you’re done.
Or you can used accountants to streamline the process and ensure you’re paying the right amount of tax.
What are some common deductions for taxpayers?
H&R Block accountants said the Australian Tax Office (ATO) had made it easier for taxpayers to claim working-from-home expenses.
“This has happened because the ATO has abolished the 80 cent per hour “shortcut” rate and also the 52 cents per hour fixed rate to calculate your deductions,” H&R Block said.
“Instead, they have introduced (from 1 July 2022) a new fixed rate of 67 cents per hour, with enhanced record keeping requirements and a changed mix of item which are included in the rate.”
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The revised fixed rate of 67 cents per work hour covers the following expenses.
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energy expenses (electricity and gas)
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phone usage (mobile and home)
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internet
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stationery and computer consumables
It is the first time phone usage and internet expenses are covered in the fixed rate method.
“Note that under the new rules, if you use your mobile phone for work purposes when you are out-and-about, as well as at home, you can no longer claim a separate deduction for this use and still use the fixed rate method.”
H&R Block said the biggest burden of the new fixed rate was having to keep a record of all the hours you worked from home in an entire income year.
”The ATO won’t accept estimates, or a four-week representative diary or similar document for any period after March 1, 2023.
“Records of hours worked from home can be in any form provided they are kept as they occur, for example, timesheets, rosters, logs of time spent accessing employer or business systems, or a diary for the full year.”
Other deductions taxpayers could be eligible for include self-education expenses, professional memberships or subscriptions, rental property expenses and work-related travel.
Another overlooked item taxpayers can claim is a handbag, if it’s used for work purposes.
The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.
