Maximize tax refund and how to avoid common mistakes in the tax return

The COVID 19 is creating a stir in the community, especially in New South Wales, and Victoria. Today, there are over 410 new COVID19 cases in Victoria and around eight new COVID19 cases in New South Wales. The COVID19 new cases in New South Wales, 5 of them come from The Thai Rock Restaurant in the Stockland Mall in Weatherill Park, hence if you have been in the area during the past two weeks, please do the right thing and isolate and do not spread the virus. 

Many Australians had filed their tax returns early this year. The statistic from ATO shows there are over 740,000 online lodgements up to now, compare to the 640,000 from the same time last financial year.

Due to a large number of lodgement, the early release of super, and the job keeper applications, the ATO’s online system had crashed on the first day of the financial year. Hopefully, it is not due to the COVID19 virus. 

There was over 1.7 million individual tax return lodged during the first two weeks into the financial year; this is a 12% jump from the same period in the last fiscal year. Ms karen Foat, the assistant commissioner of ATO, said that over $1billion had gone into the taxpayer’s pocket, most people saw a massive refund of over on average $2,365. The large tax refund would mean it might go to the individual’s living expense to help them out in this challenging and trying time. 

By the Australian Bureau Of Statistic, there is over 990,000 Australian unemployed, hence the large tax refund would hopefully go to help them out a little bit in the challenging environment. 

EndureGo Tax being the leading tax return specialist and professional CPA firm would like to help you to maximize your tax refund in today’s COVID19 environment. We will help you to maximize your legally entitled work-related deductions; hence your return can further be largely maximized.

However it is important to point out, that normally the electronically lodged tax return will be processed within two weeks, ATO sometime will do the data matching and checking of the tax return to ensure that there is no mistake. Some of the common mistakes which people might make are

  1. Some people duplicate the 80 cents per hour working from home office expense with the existing 52 cents fix rate working from home office expense for the same period of March to June 2020. By the ATO, if you had used one method of 80 cents per hour, you can not use the other one. If you are claiming the 80 cents per hour working from home office expense, you can not also double-dip into claiming depreciation expense from those expensive written off asset. If you believe you had made a mistake, please come and talk to us, as the leading tax return specialist in Sydney and Adelaide, we will work with you to correct the error before ATO does the audit. 
  2. In the COVID19 period, some employees or most employees were forced to work from home; hence if you are working from home, you can not go and see clients, and go from worksite to another worksite, then it is not feasible to claim the travel expense or car expense. What ATO had noticed is that some people are copying and pasting prior deduction into this year deduction, however, not factoring into the changing of circumstances. 
  3. Some businesspeople did not include the $10,000 NSW Government grant, Jobkeeper Grant as their assessable income. It is important to note that those two government grants are assessable income. However, they do not have the GST implications(i.e. they do not have GST component to it). The cash flow booster which the ATO had announced to provided to many small business people are not assessable income. 

Hence if you have lodged the tax returns, but received a letter from the ATO asking about those mistakes, please contact us. As the leading tax return specialist in Sydney and Adelaide, we will be able to help you to maximize tax refund, and especially if you have not lodged the tax return.

Leave a Reply

Your email address will not be published. Required fields are marked *