Tax Returns

It’s tax time again! The end of the financial year seems to arrive quicker every year. This can be a stressful time of year that many of us might dread, however, utilising the end of the financial year can be the perfect opportunity to organise your finances.

To avoid the hassle of amendments and ensure your tax return is correct and complete, we recommend waiting until all of your information is available on your ATO records, including possibly:

  1. Your income statement/(s) status is “Tax Ready” before proceeding to lodge your return
  2. Ensuring Private Health Insurance Information is available
  3. Any other income, such as Interest, dividends and managed funds, is available on your ATO records


When to complete your tax return

When your income statement is marked as “Tax Ready,” it means your employer has finalised all relevant details regarding your wage, tax, and super contributions. Using this final information will ensure the accuracy of your tax return.

Lodging your return with a “Not Tax Ready” status means you will be relying on incomplete or estimated information, which will increase the risk of errors and potential discrepancies. If your employer finalises your income statement after you’ve lodged your return, you will need to amend your return, which can be time-consuming and may result in additional tax liabilities and penalties may apply.


Income Statements (Formally known as Payment Summaries or Group Certificates)

To proceed with lodging your tax return, you first must have a summary of employee income, which is also known as an Income Statement (Formally known as a Payment summary or group certificate).

Every year, all workers must have access to this information provided by their employer by July 14th. The same deadline still applies, regardless of if the amount being withheld is $0.


Private Health Insurance

Due to recent changes made by the Australian Government, health funds are no longer obligated to automatically provide members with an annual tax statement via mail or email. If you file your tax return online using myTax or through a registered tax agent, you no longer need to manually enter your health insurance tax information, and it will be automatically filled in by late July.

If you and your entire family unit don’t have the appropriate private patient hospital cover, you may be liable for the Medicare Levy Surcharge (MLS) in addition to the 2% Medicare Levy. The surcharge amount does differ as it depends on your income and individual circumstances. By you and your entire family unit purchasing suitable hospital coverage through an approved health insurer, you can avoid this surcharge at tax time. (Please note that this can be apportioned on a daily basis where coverage commences part-way through a year)


Home Office Deductions

The number of people working from home has increased since COVID-19. If you work from home, you may be eligible to claim deductions for related expenses. These deductions can include costs for stationery, energy, and office equipment.

Per 2023 financial year, there are two methods and both require you to maintain relevant records and documentation. This includes:

  1. Fixed Rate Method – Require a record of all the hours you work from home for the entire year
  2. Actual Cost Method – Require a record and documentation of all your home office expenses and the business use percentage

If you would like to check your eligibility and find out more information on what you can claim, you can learn more here.


Support for Small Businesses

As part of the 2024–25 Budget on May 14, 2024, the government proposed an extension on the $20,000 instant asset write-off for small businesses by an additional 12 months until June 30, 2025. This measure aims to improve cash flow and reduce compliance costs.

Small businesses with a turnover of less than $10 million can immediately deduct the cost of eligible depreciating assets under $20,000. This applies to assets used or installed between July 1, 2023, and June 30, 2025. “Immediately deductible” means claiming a tax deduction in the same year the asset is purchased and used. For GST-registered businesses, the cost must be under $20,000 after GST credits; for non-registered businesses, it must be under $20,000 including GST, applying to each individual asset. (Please note that neither the 2024 or 2025 Financial Years have been Legislated yet and the Senate is requesting that the limit be set at $30,000).


Tax returns Geelong with the experts at The Hrkac Group

If you need assistance with lodging your tax return or you have any questions about how to best prepare for tax time and maximise your return, The Hrkac Group team of accountants have the knowledge and are here to help make your life easier.

Get in touch and book your tax appointment with the HG Accounting professionals today! Call us on (03) 5224 2366 or book your appointment here.


General Advice Warning
This information has been provided as general advice. We have not considered your financial circumstances, needs, or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication. Whilst all care has been taken in the preparation of this material, it is based on our understanding of current regulatory requirements and laws at the publication date. As these laws are subject to change you should talk to an authorised adviser for the most up-to-date information. No warranty is given in respect of the information provided and accordingly, neither nor its related entities, employees, or representatives accepts responsibility for any loss suffered by any person arising from reliance on this information.
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