Do you run a business with less than 20 employees? Many small business owners I've been speaking to are not aware of the STP deadline on 30 September 2019.
It's now less than a month away before the first major deadline for STP reporting. Is your business ready? Some say Single Touch Payroll (STP) is the most significant change to business since GST was introduced in 2000 (almost 20 years ago!). But what is it, and more importantly, how does it affect you?
Good news: if your taxable income (ie your before-tax salary minus tax deductions) for the 2018-19 financial year was between $48,000 and $90,000, you can expect a sweet tax offset when you get your refund back to the amount of $1,080.
A lot, actually! Tax legislation changes every year, and keeping on top of every little detail can be incredibly time-consuming. Tax agents are experts in this space and can help you navigate all the changes, but here's a snapshot of the main difference.
Every year, the ATO picks 2-3 areas that it's targeting with a laser focus for income tax, and it's a good idea to be aware of these areas when you lodge your tax. Last year, it was work-related expenses. This year, it's work-related expenses again, followed by property-related tax deductions.
We live in an age of self-empowerment. We can do our own banking online, book flights and hotels without a travel agent, and even apply for a home loan without a mortgage broker. But just because you can, doesn't mean you should. Particularly when it comes to lodging your taxes.
Beware of tax agents who claim to offer you an 'instant tax refund'. What they're really offering is a high-interest, short-term loan that can leave you seriously out of pocket if you're not careful. There's actually no such thing as an 'instant tax refund' - and you should really be wary of any tax agents that claim to offer this.
We see people making the same tax return mistakes every year, which can result in: a lower tax refund than you're entitled to; a delay in your tax refund getting process; or worse, the ATO auditing your tax return as it's detected some dodgy deductions.
Getting scammed can happen to the best of us. A recent scam that's currently doing the rounds is a text message purporting to be from the ATO, saying that your tax refund is ready, with a link you have to click on to claim it.