Apps changing the way we file our tax returns

MANY Australians celebrate the end of the financial year by splashing out on a big purchase when their personal tax refund comes rolling in; perhaps a deposit on a new car or a new designer handbag.

In order to obtain their refunds, the majority of Australians hand over a nice wad of cash to a tax agent to file the return on their behalf.

Contrary to this, gutsy Australians are slowly breaking free from the use of the trusty tax agent and submitting their own returns.

So what’s the cause of this new trend?

None other than an influx of mobile applications to the market.

At the touch of a button individuals can now record mileage, expenses and even upload receipt images or invoices. This allows users to track expenses as they go, lessening the burden at the end of the financial year.

If using the official ATO app, users can even upload expenses tracked throughout the year to pre-fill their tax return.

There are several big players moving in to this new mobile market; the leading provider had over 500,000 online subscribers at the end of 2017.

With the average salary of around $62k and the average tax rate standing at 32.5 per cent, a tax agent charging $200 for a tax return needs to find $615 worth of expenses that an individual using an app wouldn’t have identified to make the outlay worth it. In the digital age, with Google at your side and a trusty app to tell you the tricks of the trade, it isn’t surprising that some are willing to take the leap.

All that being said, how well do you know Australian taxation legislation?

The risk of DIY tax is that the individual may break the rules without a specialist to advise them.

Tax legislation changes every year, and to keep up to date with these changes takes time and effort.

Furthermore, individuals may not realise what they can claim for and so under-claim instead, costing them more money in the long run.

AT THE TOUCH OF A BUTTON INDIVIDUALS CAN NOW RECORD MILEAGE, EXPENSES AND EVEN UPLOAD RECEIPT IMAGES OR INVOICES. THIS ALLOWS USERS TO TRACK EXPENSES AS THEY GO.

It’s no doubt tax apps can save time, effort and money. However, without investing time in understanding tax legislation and what expenses can and should be included, it could potentially be disastrous. The popularity of the apps is unsurprising, given the ability to track continuously and onthe-go throughout the year. Even if the end game is to hand the phone over to a tax agent to review, it will surely make even the disorganised organised!

MARIA TURNER IS A POSTGRADUATE STUDENT AT SOUTHERN CROSS UNIVERSITY