The Too Hard Basket
By Ligaya Ninte
With only a few months until 30 June, we are in the midst of tax planning for the 2017/18 financial year. Some people may not have looked at last year’s tax, let alone thought about the current year we are in. This may sound alarming but there is still time to lodge your tax returns - provided your tax is not buried at the bottom of your too hard basket.
When are individual tax returns due to be lodged?
As always the answer depends on a few factors, but here are the key things to keep in mind.
Lodging directly with the ATO
If you lodge your or one of your family member’s tax returns online through MyGov or via paper, your return is due to be lodged by 31 October each year. You can lodge after this date however you may incur late lodgement penalties.
Lodging via an Accountant
By visiting your Accountant you not only get access to expert advice when completing your return, you also receive a substantial extension on your due date for both lodgement and payment.
Most individual tax returns will be due on 15 May. Yes that’s right, almost an entire year after 30 June. As Lincolns has a very good lodgement history with ATO, we may be able to access further extensions depending on the circumstances.
Unsure if you will meet your tax obligations?
You may have lost your tax documents, been pre-occupied with more important matters, or maybe you are simply procrastinating. Whatever the reason, if you are unsure that you will meet your tax obligations, it is best to get in touch with us as soon as possible.
Taxpayers who do not meet their tax obligations may face penalties or interest charges. To avoid these penalties, you need to ensure you pay the full amount of tax you owe by the due date.
Having trouble paying your tax liability?
Instead of just paying the ATO when you can, it is best to set up a payment arrangement if you are unable to pay your tax by the due date. Before contacting the ATO to setup a payment arrangement, you will need to consider what amount you can fit into your budget and the frequency you can make the payment.
Once you have a payment arrangement in place you must stick to it. If you default on the payment arrangement, the arrangement is no longer valid and you will need to pay the amount in full immediately or attempt to setup a new arrangement.
The ATO have recently clamped down on people who consistently default on their payment arrangements. If you default you may need to provide details of your monthly income and expenses, assets and liabilities, name of your bank and details of your bank accounts in order to setup a new arrangement.
Sounds a bit daunting? Make sure you give us a call and we can assist you in dealing with the ATO.
We love getting out into the community to share our knowledge. Here's where we will be in the next month:
- Newdegate on Wednesday 2 May - Jenni Leonard and Tom Warner will be talking about Employment with topics including awards, managing employees, employing foreign workers, single touch payroll.
- Ongerup on Friday 4 May - Paul Meaton and Tom Warner will be presenting a Small Business seminar. Suitable for owner-operated businesses and farming enterprises, topics include farm and business finance made simple, what is a fair wage for you and your employees, getting the most out of your accountant.
- Albany on 9, 15 and 24 May - Amy Sims and Chrissie Smith will be highlighting the roles and responsibilities of being a great Treasurer.
Would you like us to run a seminar in your community? Call us on 9841 1200 to discuss.