Australians have been urged not to rush into filing their tax returns if they want to avoid problems in the future.
Tax expert Hripsime Demirdjian, founder of Australian accounting firm Hive Wise, has warned people not to file their tax returns immediately after July 1.
Ms Demirdjian said in a TikTok video posted last week that employers have until July 14 to provide important payroll data to the ATO (Australian Taxation Office).
Anyone who files their tax return before that date could therefore be underreporting their income, as it may not match the figure their employer subsequently provides to the ATO.
“If you file your tax return on July 1, you’ll be basing it on incomplete and unfinalized payroll data,” Ms. Demirdjian said.
This could result in a tax return being reviewed, which in turn may result in the person filing the return owing money to the ATO.
Ms Demirdjian also warned those who have investments tied to accounts such as managed funds to wait even longer.
“Data on such investments for the financial year are not available until late August and September… sometimes even later,” he explained.
Hripsime Demirdjian (pictured), founder of Australian accounting firm Hive Wise, has warned people not to file their tax returns on July 1.
He also addressed a common misconception that filing taxes early will help people get a better return.
Large deductions, such as work-related expenses and expenses not claimed by an employer, can increase the amount of money people recover.
“If you don’t have any of the above, then you’re unlikely to get a big refund,” Ms. Demirdjian said. news.com.au
Ms Demirdjian also warned that the ATO has become more adept at recognising inconsistencies in financial data submitted by an employee and their employer.
Filing a late payment or failing to account for all income and expenses can result in significant additional charges.
“To make matters worse, if the amendment occurs after your tax return is due, you will end up paying interest on this late payment as well,” Ms. Demirdjian said.
‘The ATO is currently charging an exorbitant 11.36 per cent interest.’
ATO Deputy Commissioner Rob Thompson said the tax office is keeping a close eye on working from home expenses.
Ms Demirdjian also addressed a common misconception: the idea that filing a tax return early will help people get a better return (file image)
Mr Thompson said some people reported their expenses twice on their tax returns, which he said resulted in incorrect deductions being provided on their forms.
“One thing we’ll be focusing on this year is making sure people aren’t double-claiming expenses, so they’re not claiming things like their internet or phone bills separately if they’re using that flat-rate method,” he said. ABC.
“People need to keep track of all the hours they’ve worked from home throughout the year. It can be a timesheet… whatever each person wants to make work for them.”
Nearly nine million Australians claimed around $24.5 billion in work-related expenses last year, with claims relating to home working expenses.
The average claim for work-from-home expenses was around $3,000.