| FREQUENTLY
ASKED QUESTIONS (FAQ's) |
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The fee for tax
return preparation depends upon the complexity of income and
deductions involved. The fee for most "I" returns is between
$95 to $130 where the fee is paid by cash, cheque
or credit card at the time of preparation. That fee is tax deductible
in the year paid. |
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We can deduct
the ITP fee from the ATO refund and have the net funds deposited
directly into your own bank account should
you so wish. With the negotiation charges of the ATO cheque,
the possibility of reduced refund by the ATO for unpaid child
support and other overpaid DOCS charges, unpaid HECS charges
together with the ITP costs spent in processing an additional
fee will be charged of around $30. |
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We can prepare
and lodge all past year's returns together at the same time.
The current year's refunds will be returned in the normal period
but there may be slight delays with refunds coming from the
ATO for previous years returns and possibly not arriving together. |
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Some individuals
do not have to lodge a tax return. Each person's situation will
differ due to age, income and expenses. Seek expert advice from
the ITP office nearest you, with details obtained from the ITP
Locations link on this web site. |
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Under some circumstances
receipts are not required, but in order to maximise your tax deductions, we recommend you retain
all your work and business related receipts and bring them with
you at the time of your return preparation. |
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Last year the
Australian Tax Office (ATO) was able to process almost 90% of
returns within 14 working days. We are expecting this year however,
that some delays may be encountered due to data matching between
the ATO and Centrelink. If your refund has been with the ATO for
more than 21 days then contact the ITP office that prepared
your return for further assistance. |
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Home to work
and return travel is generally not claimable except in certain
circumstances. Travel between jobs on the same day and travel
for work (ie. visiting clients, doing
pick-ups or deliveries) would be claimable. If you use public
transport then keep all receipts and/or diary records. If you
use your own car then you need to keep a log book of all business
mileage travelled and all expenses of the car including petrol,
repairs, registration, insurance and interest on a car loan.
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| 8. I have received a divident statement, do I need to declare this as income? | |
| You need to include dividends and any other interest earned on bank accounts. Don't forget to include all interest, even if you've already closed the bank account. Also if you've quoted your tax file number when opening a bank account then you need to declare that interest in your individual tax return, not in a partnership or trust tax return. | |
| 9. Will
I be penalised
for lodging my return late? |
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You may receive
a fine or interest penalty charge from the ATO if you lodge
your return late. Generally if you are entitled to a refund
those penalties are minimal. ITP has lodgement
extension facilities that will minimise
such charges. Contact your nearest ITP office. |
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| 10. Do
I get all my tax back if I only work a few months of the financial
year? |
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No. The tax you
are required to pay is calculated on your total income earned
during the whole year. Whether all your income is earned in
1 day or 12 months makes no difference. |
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If you purchase
a computer for use in your work or business, you can generally
claim a percentage of the depreciation that pertains to your
work or business use. The depreciation allowed will depend on
the expected life of the computer or how long it is expected
to be current. |
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There are different
methods for claiming expenses in relation to the business use
of your motor vehicle. These can be complex so to maximise your potential claim you should maintain a
daily mileage log book for at least three months of the year
and a record of any expenses for the full year. Call in to your
nearest ITP office for a copy of their Log Book and a brief
explanation of how to record and maintain it. |
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The amount you
can claim will depend on the income levels of you and your individual
family members, the age of your children and any amount already
received through Centrelink payments.
It is therefore important that you bring all these details with
you when you attend an ITP office to have your return prepared.
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Deductions for
uniforms can only be claimed if the work uniform is specific
and identifiable to your organisation
(such as chef's checked pants) or protects you from injury whilst
you are at work. You can't claim the cost of a plain uniform
or conventional clothing, such as white shirt and black pants
or skirt which is commonly worn by waiters and waitresses, even
if your employer tells you to wear them. |
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| 15. We
had a baby last year, who should claim the baby bonus? |
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The baby bonus
is intended to compensate for the loss of income following the
birth and will normally be claimed by the mother. It is not
necessarily best for the person with the highest income to claim
the baby bonus. If you don't need to lodge a tax return then
you can lodge the claim separately. |
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Only study directly
related to your current job may be claimed as a self-education
expense. For example if you were a waiter and you were studying
book-keeping then you wouldn't be able to claim the cost of
the course as a work related expense - even if you were looking
for work as an accountant. |
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| 17. I
received money from the government during the year, do I need
to include it in my tax return? |
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Some government
payments and allowances are included as taxable income, others
are not. It's important that you declare any taxable payments
such as age pensions, Newstart allowance,
youth allowance or Austudy in your tax return. A complete list of payments
which do not need to be included on your tax return can be determined
when you meet with an ITP Consultant. |
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| 18. The
Senior Australian tax offset, how does this affect me? |
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This tax offset
means many seniors can reduce the amount of tax and Medicare
levy they pay. In some cases people may not have to lodge a
tax return. |
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You are required
to complete a TFN Declaration Form. This will be given to you
by your employer. |
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FAQ's
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