Changes to tax returns 2019
So what is new for tax returns 2019?
Well it isn’t the most huge changing year in terms of individual tax returns.
- Some tax rates changes have occurred including a lower Help (hecs)repayment threshold, lower income tax rates.
- You can now have a higher excess of $750 for singles and $1500 for family on your hospital cover that avoids your medicare levy surcharge. So for those of you wanting lower health insurance premiums, this may be a way of reducing them.
- The instant immediate tax deduction for assets of small business has been raised to $30k for assets installed and ready to use from 2/4/2019 to 30/6/2020.
Will ATO be more severe in checking your claims this year?
An interesting change has been that when tax return 2019 is lodged and unlike 2018, the details of work related expenses will also been seen by the ATO. So specific detail of all your work related claims are available for closer ATO scrutiny.
The ATO has pledged to make sure more Australians are claiming only what they should in work related expenses this year.
- I am expecting more taxpayers needing to show receipts this year. Keep your receipts for 5 years from the notice of assessment date.
- Your tax agent will keep you out of trouble as well as maximising your legitimate claims.
More information only available online
The trend is continuing that you will only be able to obtain information via mygov and the tax agent ATO portals.
I do not think this is fair, as handling mygov software is tricky for all of us. I even think it isn’t right, it is increasingly difficult to do paper tax returns.
Last year, taxpayers found Centrelink information was only available online. This year some hospital insurance tax cover are following this trend.
With Single touch payroll coming in over the next financial year, the same will be for your payment summaries.
Take extra care if lodging early in July
Lodging your tax return early in July may increase your risk of getting it wrong.
One reason is that the Federal government is still enacting legislations. Thus early lodgers may end up getting a revised assessment when the legislation is passed as late as August 2019.
When you lodge early, you have less or not finalised information available online. For instance, your mygov or tax agent may not yet in July have your payment summaries, bank interest, centrelink income, investment income, hospital tax statement.
Therefore if you are lodging early make sure you correctly collate all this information so you can add it into your tax return correctly.
If you do omit something this may result in the ATO later amending your tax return and telling you to pay extra tax on income you may not have declared.
If you are not certain you have all the information you need, consider doing it later when the information online is more accurate and easier to find.
Are you wanting an accountant on your side for tax minimisation and wealth creation?
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Not only do we make it easy to get the best refund this year, we review your personal circumstance to guide you into better tax minimisation and wealth creation for your future. See us now so we can make your taxes better and easy.
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