How to be tax ready this year

Finance

The Australian Taxation Office is advising taxpayers that improvements to reporting requirements mean that some people may not receive a payment summary directly from their employer this financial year. This information, now referred to as an income statement, will continue to be pre-filled into people’s income tax return or provided to their registered agent.

Assistant Commissioner Karen Foat said this is because many employers are now reporting wages, tax and super information to the ATO each payday.

“Around nine million Australians will be able to see their year-to-date salary and wages, PAYG withholding tax, and any employer super contributions in near real-time,” Ms Foat said.

“If you use a tax agent to lodge your return, you don’t need to do anything. We provide your agent with this information and they can lodge your return as usual.

If you lodge your own return using myTax, this information will be pre-filled into your return.

“Most employers have until 31 July 2019 to finalise their employees’ income statements so, we strongly encourage taxpayers to wait a few weeks before lodging their tax return.”

This also provides longer for other information such as from banks, health funds and government agencies to be pre-filled in your return as well, making the whole process easier.

“If you lodge your tax return before your income statement is tax ready, your employer might make changes, and you may need to lodge an amendment. In some cases, additional tax and interest may be payable,” Ms Foat said.

Taxpayers who have linked their myGov accounts to ATO online services will receive a message when their income statement is tax ready, for agents this information will be available in pre-fill reports.

“We know from previous years that the early birds who lodge in the first weeks of July are far more likely to make mistakes or submit incomplete data. That’s why we suggest waiting and letting the ATO do most of the work pre-filling your tax return,” Ms Foat said.

The ATO is also warning taxpayers with multiple jobs to take extra care. Those with more than one job should wait until all their employers have reported to the ATO or provided a payment summary.

If you can’t access your information via myGov or you lodge a paper return, you can contact us on 13 28 61 for a copy of your income statement.

 

Private health insurance statement

Taxpayers with private health insurance should be aware that insurance providers are no longer required to provide statements to their members.

Previously, your health insurer was required to send a private health insurance statement to each adult covered by the policy by 15 July each year. It is now optional for them to send you this information.

If you lodge your tax return online using myTax or lodge using a registered tax agent, your health insurance details should be pre-filled. If your health insurance details are not pre-filled or you lodge a paper tax return, you will need to contact your health insurer in order to get a private health insurance statement.


Full article is at: https://www.ato.gov.au/Media-centre/Media-releases/How-to-be-tax-ready-this-year/

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