Haven’t received your tax refund?

The Australian Taxation Office has recently released updated figures on 2011 tax return processing.

To 31^st August 2011, the ATO has received just over 5 million 2011 tax returns and issued refunds totalling $9.36 billion.  In addition to this, around 475,000 prior year returns have also been received since 1 July 2011.

The ATO issued 499,000 2011 refunds with a value of $1.21 billion in the week to 31^st August.  While this is an enormous figure, the ATO is still on track with their processing times, with many clients receiving refunds into their bank accounts well in advance of the 14 day target.

Tax returns can sometimes take a little longer to process though, especially if you have obligations to Centrelink or the Child Support Agency.  The ATO cross-checks information with these agencies to asses any outstanding debts, and this can add three days or more to the processing.

In addition, complex tax returns may require manual processing, as will returns with high tax deductions or missing/incorrect information.

If you are concerned about the processing of your tax return and have not received any notification from the ATO in three weeks from the date of lodgement, please contact us or phone 13 28 65 to use the ATO’s automated system to check on the status.

Flood Levy – Frequently Asked Questions

The past year has seen some of the worst natural disasters to affect Australia in many years.  Floods in Queensland and Victoria have left many people and areas affected and rebuilding costs are expected to reach into billions of dollars.

To assist with the rebuilding these areas and providing help to people affected, the Australian Government has imposed a small additional levy for the upcoming 2011-2012 year.  This levy only applies to certain people and can reach up to 1% of taxable income.

But what does it mean to you?

Read the rest of this entry »

Common tax myths

‘It is tax deductible, that means it is free!’
‘But I have to wear black and white to work; that means it is a uniform’
‘Just claim the $300 that I’m entitled to without receipts’

There are many tax myths out there, and everyone has heard at least one. Accountants hear pretty much all of them, from the very common to the really bizarre. News.com.au recently published a fantastic article dispelling some of the most common tax myths around.

How many have you heard?

Common Tax Myths
 

Office Holiday Closure

The office will close for annual holidays from Friday 25^th March and reopen Monday 11^th April.

Naturally I won’t have my computer or your files with me, so I will be unable to assist you during this time. Phones, email and fax will be unattended during this period.

If you think you may need copies of tax returns or PAYG summaries for financing etc, please contact me by Monday 21^st March to allow me time to organise these copies before the office closes.

If you are yet to complete your 2010 return, the due date for most returns is Monday 16^th May 2010. Please take the opportunity while I’m away to start organising your 2010 documentation.

Christmas Trading Hours

Just a quick note to let you know that the office will be closing for the Christmas/New Year period, with the phones unattended from Friday the 17th of December. The office will reopen for business from Monday the 10th of January.

I’d like to take the opportunity to wish you all a Merry Christmas, and I hope that 2011 proves to be a successful year for everyone.

Cheers

ASHLEY

Benchmarking takes another step forward…..

Many people in business are aware that the ATO are targeting under reporting of income by using benchmarks. The benchmarks have been formed over a number of years utilising a range of information from various industries. The ATO have now taken the next step and have issued Cash Sales Benchmarks – another way of ensuring businesses report all income received.

Anyone in business should take the time to familiarise themselves with the current Benchmarks, along with the ATO’s current audit approach.

For more information take a look at the following link.

http://www.ato.gov.au/businesses/content.asp?doc=/content/00214689.htm&page=1&H1

Annual Holidays – Office Closure

The office will be closing for annual holidays, with phones and email unattended, from 5:00pm Thursday June 3. Should you require any information held on file, or copies of returns for financing etc, please don’t hesitate to contact my office before the closure date.

The office will reopen for business 9:00am Monday 21 June.

Lodgement Deferral – Email from the ATO

General lodgment deferral for 15 May individual and trust income tax returns to 22 May 2010

To assist tax agents with the impacts on their lodgment program workloads associated with our new income tax processing system, the Commissioner has reviewed the 15 May lodgment date for individual and trust income tax returns.

The Commissioner has granted a general lodgment deferral for all 2009 individual and trust income tax returns due to be lodged by 15 May to 22 May 2010. Payment (if required) will be due as per the notice of assessment.

The general lodgment deferral only applies to individual and trust income tax returns that have a due date for lodgment of 15 May.

James O’Halloran
Deputy Commissioner
Tax Practitioner and Lodgment Strategy

Claiming Deductions Against Youth Allowance

On the 23rd April, the High Court Granted the Commissioner special leave to appeal against the decision of the Full Federal court in the matter against Anstis.

Until the matter is resolved, the Comissioner will continue to apply the view set out in Tr 98/9, that education expenses are NOT deductible against Commonwealth education income.

Click on the link for more information on the case of  Federal Commissioner of Taxation vs Anstis

Refund Cheque Delays….Again

This just received by email from the ATO:

14 April 2010

Refund cheque delays

We have identified an error where some of your clients may have received a notice of assessment without a corresponding statement of account or refund cheque. Due to this error, approximately 140,000 cheques were not printed.

We are fixing the problem and the cheques should be with your clients by the end of next week.

Annamaria Carey
Assistant Commissioner
Tax Practitioner and Lodgment Strategy

And the previous correspondence….

22 March 2010

Refund cheque delays

Last week, we experienced an issue that meant we had to stop a significant number of refund cheques from being sent out. This did not affect refunds paid by electronic funds transfer (EFT).

We apologise for the delay. We have fixed the problem and have resumed processing. The majority of these refunds will be delivered by the end of this week.

The date of issue on these cheques is likely to be from the week ending 12 March 2010.

Annamaria Carey
Assistant Commissioner
Tax Practitioner and Lodgment Strategy