It's Tax season!

The Australian financial year runs from 1^st July to 30^th June the following year. Within that, the tax season spans the four months from 1^st July to 31^st October the same year. During this tax period, you need to report the income you earned throughout the previous financial year to the Australian Taxation Office (ATO). Tax is charged on earnings, but you're entitled to claim deductions for certain expenses directly related to your income. You might also be eligible for tax offsets that reduce the amount you pay. It’s good practice to complete all taxable transactions before the end of the financial year (EOFY), so you can claim them as soon as possible. When lodging your tax return, have your accounts organised to meet compliance requirements. Be sure to check all paperwork - make certain that forms and documents are fully completed and signed correctly to reduce the potential of any delays in processing. Tax lodgement obligations include:

• Income tax returns
• Monthly or quarterly business activity statements (BAS)
• Fringe benefits tax (FBT) returns and Pay As You Go (PAYG) withholding annual reports
• Annual goods and services tax (GST) returns and information reports
• Superannuation statements, including self-managed super funds
• Other lodgement obligations, including annual investment income reports

When a due date falls on a Saturday, Sunday or public holiday, you can lodge on the next business day. If you fail to submit your return by 31^st October, the ATO will estimate your tax liability, often for more than you actually owe because it doesn’t know all of the allowances and deductions you could be eligible for. Moreover, you could face the prospect of having to pay a penalty if you:

• Have more than one tax return outstanding
• Have a poor lodgement history
• Haven’t complied with a request to lodge your tax return

If you’re due a tax refund, there’s no reason not to file for one. After all, it’s your money you’re getting back. And you want it in your wallet again ASAP to do as you please! Remember, Moneysoft can help you at tax time. You can assign transactions to 'Tax' when you are categorising, so that when it comes to doing your tax you are easily able to identify what is tax related and what isn’t. Disclaimer: The content within is general or publicly available information only. Speak with your accountant or financial adviser for advice on your specific circumstances or visit www.ato.gov.au

Posted 8 years ago 2 Minute(s) to read