Take a fresh look at your lifestyle.

The head of the tax office reveals the five BIG mistakes Australians make on their return this year

ATO's Assistant Commissioner Karen Foat (pictured) has revealed the five simple mistakes Australians make when filing their tax returns

ATO’s Assistant Commissioner Karen Foat (pictured) has revealed the five simple mistakes Australians make when filing their tax returns

Australians made five simple mistakes filing their tax returns, which slows down the return process.

At the start of the new fiscal year on July 1, the Australian tax office website crashed when people rushed to file their returns.

Within two days, the ATO received as many as 230,000 tax return applications, but many of them were full of errors.

ATO’s Assistant Commissioner Karen Foat said it was simple mistakes that slowed down the return process.

“Many people who came in early to stay early have left out income such as work income, bank information, bank interest, private health insurance, and JobKeeper as an employee and job seeker,” she said. Herald Sun..

Australians make five simple mistakes when filing their tax returns, which slows down the return process (inventory)

Australians make five simple mistakes when filing their tax returns, which slows down the return process (inventory)

Australians make five simple mistakes when filing their tax returns, which slows down the return process (inventory)

“That information is generally ready by the end of July, and we tell people who stay before then to make sure it is in there.”

She also said Australians did not update their bank account information and misused the 80-cent shortcut for employees who worked from home.

“This rate is all-inclusive, so if you claim that you won’t be able to claim any other work-at-home costs,” Foat said.

It’s because the ATO has extended the shortcut of 80 cents for every hour of home work from March 1 to June 30 to September.

This option can be used by several people who work in the same house.

Employees can also opt for the other two calculation methods if they think it will give them greater returns, as long as there is evidence of purchases.

The five most important mistakes in tax returns:

  1. Omitting income for the 2019/20 financial year
  2. Do not update bank details on ATO website
  3. Incorrect use of the 80 cents per hour shortcut rule for working from home.
  4. Copy last year’s returns despite changing circumstances.
  5. Claiming tea or coffee that they say was 100 percent used for work when they weren’t.

Source: Australian tax authorities

Under the actual expense method, employees can declare expenses caused by working from home, such as electricity and internet bills.

With the flat-rate method, employees claim a 52-cent deduction for every hour of home work for additional running costs, such as depreciation of furniture, electricity, gas, heating, cooling, and repairs.

Ms. Foat also noted that Australians are copying the return from previous years when this was not the case due to changed circumstances.

Some people also claimed that coffee or tea was used 100 percent for work when they weren’t.

Mark Chapman, H&R Block’s communications director, asked Australians to wait to collect their taxes until all the necessary information is ready.

It comes after the ATO website crashed with Australians stuck in financial straits rushing to take another $ 10,000 out of retirement.

The first $ 10,000 can be withdrawn during FY 2019-20 and the same amount can be withdrawn again during FY 2020-21.

More than 2.2 million approved applications have already withdrawn a total of $ 18.5 billion.

Applications for access to super early fiscal year 2020-21 are available through the MyGov website and close on September 24.

Mark Chapman, H&R Block's communications director, asked Australians to wait to collect their taxes until all the necessary information is ready (inventory)

Mark Chapman, H&R Block's communications director, asked Australians to wait to collect their taxes until all the necessary information is ready (inventory)

Mark Chapman, H&R Block’s communications director, asked Australians to wait to collect their taxes until all the necessary information is ready (inventory)

Customers who signed up to file their tax or request access to their super fund were presented with an error message (shown) after the site crashed due to heavy traffic

Customers who signed up to file their tax or request access to their super fund were presented with an error message (shown) after the site crashed due to heavy traffic

Customers who signed up to file their tax or request access to their super fund were presented with an error message (shown) after the site crashed due to heavy traffic

Australians can only access their super if they are unemployed, eligible for jobseeker benefits, fired since January 1, or have their working hours reduced by at least 20 percent.

However, experts have urged young Australians to reflect on the consequences of raising funds early after billions of dollars have been swept away in recent months.

A 35-year-old who now withdraws $ 10,000 will see a $ 19,411 reduction in their super when they retire at age 67, according to the Money Smart calculator.

What you can and cannot collect on taxes while working at home

Expenses that you can declare

If you work from home, you can get a deduction for the extra costs you incur. These include:

  • electricity costs related to heating, cooling and lighting
  • the area from which you work and run
  • items you use for your work
  • cleaning costs for a special workspace
  • telephone and internet costs
  • computer consumables (for example, printer paper and ink) and stationery
  • home office equipment, including computers, printers, phones, furniture, and furniture – you can claim the full cost of items down to a $ 300 depreciation on items over $ 300.

Expenses that you cannot claim

  • If you work from home, you cannot claim:
  • the cost of coffee, tea, milk, and other general household items that your employer would otherwise have provided to you at work
  • costs associated with children and their education, including setting up online learning, home schooling or purchasing equipment such as iPads and desks
  • items that you get reimbursed, paid directly by your employer or the depreciation of items offered by your employer, for example a laptop or a telephone
  • time spent not working, such as time spent at home teaching your kids or your lunch break.

Employees generally cannot declare usage costs, such as rent, mortgage interest, water and rates.

Source: Australian tax authorities

.