little changes make a big difference to tax

The tax system in Australia is based on an self-assessment method. This means that should employees and wage earners lodge their own tax return, the the Australian Tax Office (ATO) should generally accept anything you have claimed in that return and issue your assessment accordingly, and you will receive a refund if applicable.

This is the case regardless of whether you complete your own tax through an online service such as the ATO’s services (Etax, now known as Mytax), or through a Tax Agent such as

More information about how online tax returns work can be found by following the link. Once on the page, follow the steps to lodge your tax online now.

However, after returns have been lodged, the tax department can and do conduct a review of the return, and compare what is in your return with information that has been supplied to them by various institutions (ie your employers), banks, real estate agents, managed funds ect.

are you missing out on deductions

They also compare any deductions you have made with benchmarks for other people in similar industries. By using all of these methods, if the tax department find any discrepancies in your return, they will issue you will a “please explain” notice.
It is then your responsibility to prove to the Tax Office that you did not receive the income that they believe you have received.

You will also have to provide evidence that any deductions you have claimed are legitimate, and you have the appropriate documentation as proof.

If you can not supply any of this the tax office will amend your tax return and can issue you with a fine between 20-100% of the tax avoided and charge you interest on the tax that is avoided.
Therefore, although you may have initially received a refund, you may find that the tax office issue an amended assessment which means that you have to repay part or all of that refund, and more.

how to be sure you haven't missed any tax items

With such a burden of proof on the tax payer, it can be a mine field preparing your own tax return. Australian tax law is one of the most complicated in the world. We highly recommend that you have your tax return prepared by a registered tax agent, such as

Remember that the cost of having a return prepared by a tax agent is fully tax deductible, and often it means getting more back in your tax refund. Even if you want to prepare your own tax return, at the very least you should have a tax agent review it to prevent problems down the track with the Australian Taxation Office (ATO). We are ready to assist, and we can help you ensure that everything has been done correctly, and you are not missing anything – Contact us

Visit our How It Works page and follow the steps to lodge your tax online now.

Should I Do My Tax Online

Watch this video for an explanation on the way the Australian Tax system works for wage earners and employees. The tax rates change from year to year so stay up to date to avoid paying too much tax.

This Audio File Explains How the ATO Assess You And Whether To Use An Accountant