When you lodge a tax return each year, do you get the right tax refund amount you are liable to? Are you looking to maximise tax refund but don’t know where to begin and don’t want to get into difficulty with the ATO? To get the right tax refund amount you are entitled to, you can reach out to a tax agent in Melbourne.
Understanding Tax Return in Australia
Australia has a progressive tax system, which means the more you earn, the higher tax you need to pay. The Australian Taxation Office manages tax collection for the government. Your income tax payment is based on your taxable income and includes all income types, such as business profits, wages, and investment returns. This means you must mention several types of income when you lodge your tax return.
Is It Worth Using a Tax Agent in Australia to Maximise Tax Refund?
A tax return accountants know everything about the tax deductions that you are liable to claim, and they will ask you a few questions to help you get the most refund on your taxes. Additionally, the fee you pay them will be considered a deduction on next year’s tax return. There have been a number of changes to the tax system in the past year. So, it is crucial stay updated with every tax change to gain more profit in tax matters.
- Claim what you are liable to
Tax accountants take the time to prepare all your documents like receipts, payslips, bank statements, and summaries of your payments. They will ensure to maintain a spreadsheet including your expenses. To ensure consistency from the start, a tax accountant will create a tax checklist to stay updated on what to collect to increase your return. In case you have incurred expenses for a part of your work, you need to have evidence to prove it and claim it.
- Provide accurate information
You are subject to claim what you have spent. Therefore, don’t try to claim that you are not liable to claim. Tax agents in Melbourne will ensure to only claim for expenses you can provide you have incurred by generating an invoice, bank statement or receipt. Additionally, they will ensure you declare all your earnings accurately, including any foreign income, investment property gains or earnings from cryptocurrency trading. Your information should be accurate because the ATO can access data sources to check the data you have provided. Everything from banks and financial institutions to government agencies can be called to verify your claims. If the numbers don’t match, the ATO will question your tax return. Therefore, it is suggested to seek help from a professional tax accountant to deal with tax return lodgment.
- Ask a professional tax agent
If you lodge the wrong tax return, you might get a lower refund or ATO penalties. Most people find it stressful when they have to deal with tax return complications. That’s why they prefer getting help from a professional tax agent to complete their tax return. This ensures that tax returns will be complete and accurate. Tax accountants are usually good at finding potential tax deductions you didn’t know you were eligible to claim.
- Minimise future tax liability
A professional tax agent will help you maximise tax refund and help you make a strategic plan to reduce the tax you will pay in the future. With increased income, you are likely to pay more, so it makes sense to use strategic planning to make the most of it.
- Ensuring compliance with tax laws
Everyone needs to follow tax rules in Australia when paying taxes. A knowledgeable tax professional stays updated with these rules, ensuring that you comply with reporting requirements, filing deadlines, and eligibility standards for discounts, deductions, and credits. Accurate records play a crucial role in lodging accurate tax returns, this is where bookkeeping for small businesses comes to play its role.
Conclusion
A tax refund may seem difficult, but the process can be simplified if you involve Reliable Melbourne Accountants. You can rely on our tax accountants to complete tax returns and get the most out of it.