Lodging your tax return has never been an easy job. Whether you’re experienced or it’s your first time, it can be quite a hassle. Though technology has been used to change the tedious traditional paper and pen way of tax return, to some it has become even more confusing. Often many of us postpone it over and over again for we find it too daunting a task to face. However, the ATO has eased the frustrations by providing several options through which you can approach your tax returns. You can pay a tax agent, lodge your returns online or do a paper return. If you are lodging a late tax return, click here to find out how to reduce your fines.
Who needs to lodge a tax return?
If you had tax deducted from the income you received during a financial year, there is a need for you to lodge a tax return unless you belong to a certain class of exceptions.
Lodging your returns online
There is only one option through which you can lodge online; using myTax. MyTax is an online tax return platform which is quick, secure and an easy way to lodge your tax. It is web-based; hence you don’t require to make any downloads. You can use any device of your choice – a smartphone, computer or tablet – to access myTax and lodge your returns.
For you to complete your returns online, you require a myGov account linked to the ATO. Note that myTax can only be accessed through myGov account.
You can also download myTax app, which is relatively new, via iOS or Android. The app has eliminated immaterial questions and only asks questions relevant to a personal tax refund. This has cut down the lodging time to as low as 10 minutes – a much needed option. for those who need to make a simple tax return.
Tax planning for high income individuals
Taxpayers can take advantage of tax planning initiatives like maximising deductions, in order to manage their taxable income. The tax planning process should start early in the year in order to take full advantage of these opportunities. While undertaking tax planning, be cautious of anti-avoidance provisions. However, tax planning can offer several tax savings, if done correctly.
Top 20% of Australia income earners have the most tax concessions. Obviously, tax concessions are tilted towards those Australians with a high income, and those with high individual marginal tax rates. Although it’s good to have a certain tax deduction for your tax return, very few people plan ahead with easy tax minimisation strategies.
Tax minimisation strategies for individuals
There are widely-used tax minimising strategies, which are legal, and can make a large difference in generating your overall wealth. These strategies include creating an offset account alongside a mortgage to conceal any extra money. Another is sacrificing your taxable income salary into superannuation, whereby you maximise the contribution to your retirement accounts. The more you save for retirement in qualified retirement plans, the bigger tax benefit you’ll have.
However, it is much easier when you utilise services of a competent CPA such as Femia Accountants, who follow up with the changes in tax code and identify the right tax concessions for you.
Contact our office today on 9316 4500 or book a time to meet with us.