Tax time can be extremely stressful for a lot of Australians, and as we all know it is when we are at our most stressed that we overlook minor details, but apparently, it is these simple things that may end up having you red-flagged by the Australian Tax Office.
According to a senior tax agent at Etax.com.au, Liz Russell, there are three things you can do that will have you red flagged by the Australian Tax Office.
In an interview with news.com.au, Russell said that failure to list your spouse, claiming the maximum “receipt-less” deductions and forgetting to update personal details are likely to have your tax refunds delayed, which may have you facing extra penalties or charges.
Russell says that it’s often those who are impatient about their tax return that end up in trouble.
“The early lodgers tend to be a little more caught out than someone who’s prepared to wait a month,” Russell said.
“They want to get their tax return early, they’re hanging out for that refund and they don’t take time to go through their information. They get burned in six months time when they ATO does their checking and come across a missing PAYG certificate and they end up with a bill.”
She also noted that at the end of the financial year, people often forget to do the tax for their side-hustles, thinking they don’t have to do tax for jobs like being an Uber driver. However, it is this mentality that results in what the ATO calls the “income tax gap”, with dodgy claims allegedly costing the ATO $906 per person.