Australia Tax Refunds_ How to Get The Best of It

1. Australia Tax Refunds: How to Get The Best of It? Each year, more than 14 million people in Australia fill out their tax returns, and of those who are eligible for a refund (about two-thirds), they get back little more than $2,800 on average. This results in a total refund of more than $30 billion. Therefore, it is in your best interest to ensure that you are doing everything in your power to obtain the largest possible return. You have until the 31st of October to file your tax return; but, if you are registered with a tax

2. accountant before the 31st of October, you may be able to get a grace period that allows you to file your return later than the deadline. The processing of the return will take roughly two weeks; however, your agent can keep you updated on the status of your return at any time. To get the most of your tax refunds 2023, keep reading this article. Reasons your tax refund is taking too long If it’s been more than 21 days and you still haven’t gotten your tax return, there are a few potential explanations for the delay, including the following: ● There’s an error on your tax return, and it could be anything as insignificant as a typo or a calculation error. ● Incorrect filing of documents: It is possible for there to be confusion and a need for rectification if you have provided the incorrect filing status, filled out the form incorrectly, or made some other larger-scale mistake that affects your ability to file your taxes. ● Incomplete Forms: If you failed to complete a line on your tax return, the Internal Revenue Service (IRS) will need you to go back and do so before continuing to process your return. ● There has been fraud committed: Your tax return can be affected if your Social Security number has been used fraudulently by another individual.

3. ● Holdups in the processing: There is a possibility that there will be a delay in processing due to the workflows of the IRS if you submitted very early or very late. ● Delays caused by banks and credit unions: There is a possibility that your financial institution is dealing with an unusually high volume of work on the corporate side, which could result in a delay in the crediting of your refund to your account. ● The IRS has already deducted money from your refund: The Internal Revenue Service has the authority to withhold all or a portion of your tax refund if you have delinquent financial obligations, such as back taxes or child support payments. Numerous causes might result in a delay. The good news is that there is almost always a simple solution. How long does it take to receive one’s tax refunds? Now that you have submitted your tax return, you are patiently waiting for your refund to be sent to your bank account. Where exactly is it though? When tax season rolls around, one of the questions Australians ask frequently is “Where’s my refund?” As a result, we reasoned that it would be beneficial to describe how tax refunds Australia are processed, in addition to providing an approximate timeline. When you click the ‘LODGE’ option on your online Tax Return, your submission is transmitted to the ATO so that it can be reviewed. It takes them around 12–14 business days, on average, to assess the tax return of every Australian and process any refunds that may be due. (on average, this can take up to two weeks) Read also: Australian Tax Return In 2023 – Everything You Need To Know

4. What to do if your tax refund is held up in the system If it appears that your tax return will be late, the first thing you should do is not freak out. Just relax and give it at least a month before you make any decisions. This is because the ATO won’t take any questions regarding delays until at least 30 days after your first lodgement. This is done to ensure that your refund has at least had the opportunity to come back to you. If you have waited thirty days without receiving an update, you have this option left to you: Check in with the ATO to find out how far along your tax return is. Steps to take to get the most out of your 2023 tax refund If you want to get the most money back from your tax return this year, the best thing you can do is work with an experienced accountant. If you have been

5. working from home as a result of office closures, you are eligible to claim a variety of additional expenditures; thus, it is in your best interest to seek the guidance of a tax professional to ensure that you receive the maximum refund that is legally possible. If you are eligible, you may be able to claim the following tax breaks if you work from home: ● You are responsible for the heating, cooling, lighting, and cleanliness of the space that serves as your home office. You are also responsible for the phone and internet services. ● Things like printer ink, stationery, and paper are examples of consumables. ● Home equipment such as a printer, chair, desk, screen, or computer – for these things, you have the option of claiming either the whole cost (up to $300) or the loss in value (items exceeding $300) on your taxes. So, why did you get such a low tax return? Sometimes, after using your tax refund calculator to calculate what to expect as refunds, you get a lower amount. Then, you wonder what’s going on. Here are reasons your tax refund might be lower than expected.

6. 1. Your income went up because you got a pay raise. During the year, you got a pay raise or found other ways to make more money, which is always a good thing. But the rate of tax you have to pay goes up the more money you make. So, your higher income may have put you in a higher tax rate, which means you owe more tax and get less back from the government. 2. Having a second job or another source of cash raises your taxable income. Instead of having their taxes taken out each week by their employer, people who are self-employed or have a second job may not know that they need to pay taxes on it. Things like Uber, Airbnb, and Fiverr income are not exempt from tax, so if you do these things on the side, you may need to plan for the extra tax you will have to pay. 3. Your employer isn’t taking enough money out of your pay. There are times when a company doesn’t take enough tax out of your weekly pay to cover the tax you have to pay. This could be because of an easy

7. payroll mistake, a bonus you didn’t get, or overtime that put you in a higher tax bracket. Even though you can’t do anything about this now that the financial year is over, you can keep an eye on it for the years to come. 4. Existing government debt. Out of your tax return, the government instantly pays off any debts it already owes, and the rest goes into your bank account. So, if you still owe money to government agencies (like Centrelink, the ATO, family support, etc.), your tax refund will be used to pay off this debt. When it comes to tax refunds, the ATO and all other government departments talk to each other, and if you owe them money, they usually get your refund first. 5. You’ve used the tax-free level for two or more jobs Australians don’t have to pay taxes on the first $18,200 of their income. When you start a new job and fill out your tax file statement, you can choose to claim the tax-free threshold on the income from this job. If you have more than one job and tried to claim the tax-free level on both forms, the first $18,200 from both jobs will have been calculated as tax-free, and you won’t have paid enough tax for how much money you made during the year. 6. Mistakes made on tax return It can be easy to make mistakes on your tax forms or to miss them by accident. This can happen if you don’t report taxable/assessable income, like bonuses, allowances, bank interest, or pay from outside the country, or if you claim deductions you aren’t qualified for. The ATO can also refuse some claims if you don’t have the proper paperwork or proof to back them up.

8. Because of this, the ATO may change these claims. If they do, your costs will go down, your tax debt will go up, and your return will go down. How long do I have in Australia to pay my tax bill? After a person’s tax assessment is handled, the ATO gives them up to three weeks, or 21 days, to pay their tax bill, unless the bill is from a previous financial year. If you can’t pay this on time, you can go through a tax agent who will help you stretch the payment period and make it less stressful to owe money to the ATO. How to pay back HECS-HELP debt through the tax system. There are two options for your repayment method; voluntary and compulsory repayment. If you are paying compulsorily, make sure your new boss knows that you have a HELP bill when you start a new job. This is done by checking

9. a box on the TAX DECLARATION FORM you will fill out before you start working. Based on your annual RI, your company will take out more tax from each of your paychecks to cover how much you owe in HECS-HELP debt. Note that your company only takes out the extra tax from the money they pay you. They won’t count other income, such as from a second job, an earlier job, or an investment, so you may have to pay more when you file your tax return. You can pay off your bill to the ATO whenever you want by using BPAY or a credit card. Visit the ATO or your local tax agent to find out how to make repayments and when is the best time to do so. Conclusion Everyone wants to get the best possible refund, but it is crucial to play by the rules to maximise your chances of success. If you want to avoid getting into problems with the ATO and the risk of a fine as well as the possibility of even more severe penalties, you can only claim expenses that are legitimately incurred costs. We at The Kalculators guarantee that our tax professionals will take care of your tax returns and ensure you get the best refund from it. We perform a comprehensive accuracy check on every tax return and tax claim that you submit, and we will look for any offsets and deductions to which you are legally entitled.

10. If you have any question, talk with our an experience accountant for free consultation. ← PAYG Explained: A Practical Guide to PAYG Instalments for Tax Efficiency → Financial record keeping for ATO in 2023- Everything you need to know