This section will highlight the main areas of concern for Australian taxpayers. You will find the most frequently asked questions (FAQ's), occupations that the ATO are focusing on and alerts that Australian taxpayers should be aware of.

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Australian Tax - FAQ's

Question Answer When do I need to lodge my tax return? If you prepare your own tax return, you must lodge your return by 31st October of the current financial year. If your tax agent lodges a tax return on your behalf, your due date is usually the 15th May within the current financial year. This date may be earlier if your return was lodged late in the prior year. I have earned little income this year. Do I need to lodge a tax return? If your taxable income (income less expenses) is below the threshold ($15,000 in 2010) - you are not required to lodge a tax return. However, you are required to lodge a "not required to lodge form". This form can be used for the current year only or completed when you no longer need to lodge for this year and future years. Complete the form and mail the form to the ATO. I haven't lodged my tax return for about 7 years. Will I be fined? Yes. The ATO will most likely charge you the maximum fine of $550.00 plus general interest charges on any debt due. Your best strategy is to lodge each return as soon as possible. If you don't lodged the outstanding tax returns and in the future you apply for financial assistance via Centrelink, they will insist that you lodge the returns before they even assess your situation. See: Guide to lodging your tax return and penalties charged If my 7 tax returns are all refunds, will I still be fined? Yes. The ATO should not fine taxpayers who have 2 outstanding returns but if you have more than 2 years to lodge, we find the ATO usually fine the tax payer. We have also found that the ATO don't always allow refunds for returns over 2 years. A taxpayer must then give them a valid reason why they should issue a refund to the taxpayer. This in itself is a penalty! Can I claim the education tax refund without receipts? No. You must be able to prove that you spent money on approved education expenses. You can however, try to get a copy of related documents. Computers are the main expense - call your internet provider and ask for a statement of your account for the current financial year. Try to access any statements from other suppliers as well including your school eg. for textbooks & stationery. See Education Tax Refund

Is the ATO focusing on your occupation this year?

Question Answer Is the ATO targeting any occupations in 2010? Yes. The ATO will be concentrating on the expenses of teachers, mechanics and engineers. The ATO gather information from all occupations and measure the information against benchmarks (the usual expenses a certain occupation would claim). If an employee claims expenses in an industry that is higher than that industry benchmark, further investigation will be conducted by the ATO.

Taxpayer Alerts

Question Answer Employer Alert Do you pay contractors under a contract? You must also pay the contractor super guarantee contributions of 9% if the contract is wholly or principally for the contractor's labour, even if they quote their ABN details. The ATO have identified employers that are not paying the correct amount to their contractors: accounting, accommodation and computer system design industries.