Save
Automatic tax returns could become reality for Aussie taxpayers
Australian taxpayers would have their tax returns automatically pre-filled, reducing the need to visit a tax agent, if recommendations from a parliamentary inquiry are enacted.
Automatic tax returns could become reality for Aussie taxpayers
Australian taxpayers would have their tax returns automatically pre-filled, reducing the need to visit a tax agent, if recommendations from a parliamentary inquiry are enacted.
The House of Representatives standing committee on tax and revenue’s inquiry into the Taxpayer Engagement with the Tax System has laid out 13 recommendations in a bid to simplify the Australian tax system.
One of the recommendations calls for the ATO to improve its technical initiatives such as pre-filling, simplified electronic lodgement systems for business and individuals, and online assessment tools to facilitate Australia’s transition to a ‘push return’ tax system, which is essentially a pre-filled statement of tax activity for a taxpayer to approve.
The committee lists Denmark, Sweden, and Norway as other countries that have successfully adopted a ‘push return’ approach, while noting that taxpayers in New Zealand do not have to lodge a tax return.
Standardising workplace deductions have also been highlighted as an area that would help enable ‘push returns’, while still allowing taxpayers to claim above the set amount by providing full substantiation.
This recommendation comes as tax agents are under fire from the ATO for allowing unsubstantiated claims to filter through from clients.
Earlier this year, the tax office released its Individuals not in business tax gap report, identifying that 72 per cent of the 868 cases in its random sample contained errors, contributing to the individual tax gap being over three times the amount of the reported $2.5 billion corporate tax gap.
Of the 614 tax returns prepared by a tax agent, the ATO made adjustments to 78 per cent, compared to 57 per cent of the 244 returns for self-preparers.
“Some [tax agents] display a lack of competence, or outdated knowledge and practices, or do not take proper care when undertaking their work; others are deliberately scamming or cheating the system,” said ATO boss Chris Jordan prior to the report being released.
“These results are really disappointing. For years I’ve heard how tax agents were guardians of the system – these random enquiry results tell me this is not the case for some agents," he said.
“They are not fulfilling their duty as a registered tax practitioner in line with the Tax Practitioners Code of Conduct,” he added.
“In reality, they are selling their clients short – they are not bringing their expertise, nor taking care beyond reliance or blind acceptance of information given by clients, or even, leading clients to deductions that are not allowable.”
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
Government rebuffs regional allowance and tax concession reform
A review’s findings into the viability of area tax concessions and payments for regional and remote Australians has had its recommendations shut down by the same government who requested the report...Read more
Tax saving
Penalties for tax fraud in Australia
Public taxes are used to fund government projects in relation to health, defence, infrastructure and many other national and local projects that require public funding. ...Read more
Tax saving
Disaster relief payments receive tax-exempt status
The Australian government has made disaster relief payments to bushfire-affected individuals and businesses tax-exempt while extending tax-free financial support to NSW Rural Fire Service volunteers. ...Read more
Tax saving
Are your franking credits working?
Here’s what you need to know about franking credits and how they work. ...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
Government rebuffs regional allowance and tax concession reform
A review’s findings into the viability of area tax concessions and payments for regional and remote Australians has had its recommendations shut down by the same government who requested the report...Read more
Tax saving
Penalties for tax fraud in Australia
Public taxes are used to fund government projects in relation to health, defence, infrastructure and many other national and local projects that require public funding. ...Read more
Tax saving
Disaster relief payments receive tax-exempt status
The Australian government has made disaster relief payments to bushfire-affected individuals and businesses tax-exempt while extending tax-free financial support to NSW Rural Fire Service volunteers. ...Read more
Tax saving
Are your franking credits working?
Here’s what you need to know about franking credits and how they work. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
