If you work in a tax agency, you get that you can talk about tax all day but after a long debate in the office, we need to manage to narrow all our points keep down that what we think are the top five tips that everyone should be taken care of filing tax return season in Perth Australia.
1. Residency Rule
This is the first and most important part of the information that everyone needs to know as per the Australian Taxation Office (ATO) legislation, you have to reside in Australia for minimum 183 days (approx 6 months) to be deemed resident for tax return purposes and hence be entitled to get a refund. This is a topic where a lot of rumors circulating that are not true and correct all time as per ATO rulings.
2. Medicare Levy Exemption
Medicare is the universal health scheme of Australian Governments. It is a Commonwealth government program which guarantees all citizens and some overseas visitors from British & Italians allows to a wide range of health services at no cost.
Some overseas nationalities are not allowed to the benefits but still, they are paying in their tax deductions, these people are allowed to apply for an exemption letter that stands to get their refund. There are two things to keep in mind; first you have to earn in excess of $20,542 in the financial year to be eligible in a Medicare levy exemption and second, this application will be separated to your tax return and will add an addition 10-12 business days to get the overall process.
3. Bank Interest Statement
Bank interest is a basic part that always necessary to be disclosed on your annual tax return, but the importance that this has made the top five tips list is as follows… minimum two years ago. The new system has been integrated with the banks in Australia, So at the end of the year, the ATO has full visibility on all taxpayers’ bank interest positions.
Expenses are one of the ways that boost your tax returns and get a refund or minimize your tax liability depending on your income. This category depends on your occupation for the financial year, as all expenses have to be directly connected to your related occupation.
5. Submit Documents/Group Certificates
Different tax return agents follow different policies in terms of the collection of payment documents. Some agents collect it all, while others file using other methods like pre-filing reports and statutory declarations. The perspective to Statutory Declarations can increase your chances of being audited from the ATO.
Generally, the first request from the ATO conduct is verification of income under an audit and they expect to happen with the submission of payment documents. We would like to inform that if your return has been filed, and assuming that you had a pre-filing report for one of your employers, take chasing that employer for your payment document summary so that all of your paperwork is in order and should any further details be requested.