Tax time tips
As the end of the financial year approaches, the attention of many Australians turns to completing their tax return.
But according to Yellow consumer search data, most people do not get around to searching for help with their tax return until well after the end of the financial year.
Research from yellow.com.au shows little search activity in June is followed by a peak in activity in July, August and September.
Thousands of Australians turn to Yellow to find someone to help with their tax. And in Yellow there are plenty of options, of almost 10,000 accountants listed, 30% offer tax consultancy as a specially listed service.
The government estimates 74% of taxpayers and 95% of businesses use an accountant. Yellow recommends using the search word taxation for the effective results when searching for financial help at tax time.
The National Institute of Accountants recommends getting an early start to completing your tax return, well before June 30.
According to the Institute, taxpayers should organise all the paperwork they will need and make an appointment early with their chosen tax agent or accountant to get the process completed and out of the way.
If you do have a tax liability and fail to lodge and pay by the given deadline, not only will you be liable for a late lodgement penalty, you will also have to pay interest on the outstanding tax debt, which is currently around 13%.
The Institute’s top three tax time tips are:
Make sure the person doing your tax return has the appropriate credentials, do not be afraid to ask or check by visiting the Tax Agents Board website.
List the assets you use to make your income (eg computer purchased for work) and include depreciation claims you have made previously and
Collect your dividend statements you received and any shares sold (include the date shares were sold and purchased).
20-Jun-2007