Save
One simple trick to help avoid a surprise tax bill
A senior ATO figure has offered some simple advice on how you can avoid being hit with a tax bill at financial year’s end and how not to be among the Australians owed an estimated $2.8 billion in unpaid super.
One simple trick to help avoid a surprise tax bill
A senior ATO figure has offered some simple advice on how you can avoid being hit with a tax bill at financial year’s end and how not to be among the Australians owed an estimated $2.8 billion in unpaid super.
“There’s around 100,000 Australians that get a tax debt because they’re not paying enough withholding from their wages,” said ATO assistant commissioner John Shepherd.
Many Australian workers are also not receiving their full superannuation entitlements, he said.
“We estimate around $2.8 billion a year in Super Guarantee not paid. That’s year-on-year, and that’s employees that are just missing out.”
With these figures in mind, Mr Shepherd urged Australians to register for, and actively keep up to date, with their own personal myGov account.
While it is not compulsory to have a myGov account, Mr Shepherd said that having one is “a good thing to do” because of the visibility it provides over your income, tax and super details.
“It gives you access to better services, better information about your individual circumstances... and you also get access to all your super accounts and you can roll them over,” he said.
This information will increasingly be available in real time, as Australian employers transition to a digital payroll reporting system known as Single Touch Payroll, or STP.
The STP system changes the way companies report their payroll information to the Tax Office, in effect providing income, tax and superannuation details every pay cycle.
As part of the STP system, annual payment summaries will no longer be issued by employers. Instead, the information will all be provided through myGov.
“It is the way, if you want to get access to your income statement, that you will get that at the end of the year rather than from your employer anymore,” he said.
Mr Shepherd added that as well as giving people visibility to their superannuation balances and incoming contributions, the figures available through myGov will help people avoid a dreaded tax bill.
“Because we can track multiple jobs, you can see a collective view of your salary and wage amounts and tax paid,” he said.
“And if you’ve got a higher education loan, which is more frequently kicking in now, a lot of people end up with a tax debt at the end of the year.”
By having these figures to hand throughout the financial year, rather than as lump-sum figures at the end of it, people can speak to their employer about adjusting the amount of tax being withheld much earlier, and hence reduce the chance of owing more to the ATO.
STP reporting became compulsory for all employers with more than 20 employees from 1 July 2018. It will be extended to smaller employers from 1 July this year.
Mr Shepherd was speaking as part of a live webcast about STP on Nest Egg’s sister title My Business.
The myGov information portal is a federal government service. In addition to tax information, other personal details such as JobSearch, child support, Centrelink, Medicare and NDIS are also able to be viewed.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author
About the author
Tax saving
How are Australians planning on spending their tax savings?
Essential bills, savings accounts, Christmas gifts and exchange-traded funds appear to be the big winners from the latest round of tax cuts, new research has revealed. ...Read more
Tax saving
First in the world: SA imposes EV tax
The South Australian government is the first government in the world to introduce an electronic vehicles tax following an announcement by the treasury. ...Read more
Tax saving
5 tips as tax deadline looms
Australians are being warned that they have just two weeks left to get their finances in order if they have not posted a tax return yet. ...Read more
Tax saving
ATO warns businesses of JobKeeper scam
The ATO is warning the community about a JobKeeper scam which is asking members to enter personal information. ...Read more
Tax saving
Why fast-tracking tax cuts won’t stimulate the economy
Treasurer Josh Frydenberg has flagged that previously legislated tax cuts could be moved forward in a bid to help stimulate the Australian economy. ...Read more
Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more
Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more
Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more
Tax saving
How are Australians planning on spending their tax savings?
Essential bills, savings accounts, Christmas gifts and exchange-traded funds appear to be the big winners from the latest round of tax cuts, new research has revealed. ...Read more
Tax saving
First in the world: SA imposes EV tax
The South Australian government is the first government in the world to introduce an electronic vehicles tax following an announcement by the treasury. ...Read more
Tax saving
5 tips as tax deadline looms
Australians are being warned that they have just two weeks left to get their finances in order if they have not posted a tax return yet. ...Read more
Tax saving
ATO warns businesses of JobKeeper scam
The ATO is warning the community about a JobKeeper scam which is asking members to enter personal information. ...Read more
Tax saving
Why fast-tracking tax cuts won’t stimulate the economy
Treasurer Josh Frydenberg has flagged that previously legislated tax cuts could be moved forward in a bid to help stimulate the Australian economy. ...Read more
Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more
Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more
Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
