Taxing time is here
GROUP certificates are being handed out to millions of Australians and our thoughts are turning to tax refunds.
The average taxpayer can expect to get more than $ 2000 back, but before thinking about how to spend that money, the big question is how do you do your tax? More than 20 per cent of us do it ourselves, while the rest use tax agents and accountants. The newest player on the tax block, MyTax was launched last year and is a free and simple online option for people with basic tax affairs. The ATO pre- fills your personal details and data such as wages, interest income and share dividends.
Visit ato. gov. au for more details. ETax is the more complex big sister of MyTax and is also free, relatively simple to use and you can get your data pre- filled by the ATO.
Adrian Raftery, a senior lecturer in tax and financial planning at Deakin University, says DIY tax through ETax, MyTax or the old paper returns are generally not suited to people with capital gains tax events, rental properties, managed funds and small businesses. The bulk of the nation’s tax returns are prepared by registered tax agents, who typically charge $ 100 to $ 150 for a basic return.
Make sure you keep receipts and other paperwork, as they can’t claim deductions that cannot be proved. Accountants can cost between several hundred and several thousands of dollars to do your tax return, depending on its complexity.
Maximum Wealth Advisers partner Gianni La Scala says it will always pay to seek some advice, as that small cost could save you a considerable amount.