Don’t miss the tax return deadline!
Tax return time can bring many both excitement and dread. Getting some of your hard-earned money back is always welcomed but lodging your tax return can be a task many put off until the last minute.
Since July 1st, more than 6.93 million individual lodgements have been made, and about 5.41 million refunds have already been processed, according to the Australian Taxation Office. In total, that’s 13.7 billion dollars in total, averaging $2545 per person.
There is less than a month left before you should lodge your tax return if you are opting to do it yourself, without the help of an accountant.
If you are doing this DIY route, you have until October 31st to lodge your tax return.
To get started, all you need to do is head on over to the myGov website and work through the myTax portal to lodge your claims. There is plenty of information already filled in for you, including information from your bank, health insurer and government agencies. This makes the process a lot more simple for you as you don’t have to track down the information for yourself.
As easy as it can be to put off lodging your tax return, you can be faced with a fine if you put it off. It is a hard deadline and the fine for late lodgement can be anywhere from a couple of hundred dollars to over a thousand dollars. Without a valid reason such as a death in the family, this is unfortunately a steadfast cut off.
If you have signed up with a tax agent, you can have up until May 15, 2021 to lodge your tax return, giving you a much longer period to lodge. You will need to have contacted your accountant prior to October 31st to avoid fines, so make sure your relevant paperwork and tax information is sorted. This is great option if you feel like you might not make the October deadline.
A big consideration this year is to not forget to claim any working from home costs. This is a new cost that many haven’t had to lodge before, due to the COVID-19 pandemic. If you were one of the many who have been required to work from home this year, you will need to calculate these costs to lodge. The current arrangements mean that people can claim 80c an hour for all running expenses, rather than having to calculate and claim costs such as gas and electricity individually.
If you want any assistance with lodging your taxes, please don’t hesitate to get in contact with Ascent Accountants on 08 6336 6200
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A new way to claim work-related expenses is coming for the 2027 tax return — but there is an important catch. From 1 July 2026, eligible taxpayers can claim a standard deduction of up to $1,000 for certain work-related expenses, without having to substantiate each expense individually. Sounds simple enough. But before you assume you can claim $1,000 on top of everything else, there are a few things you need to know. The $1,000 Is the Maximum The new standard deduction is capped at $1,000. It is designed to cover certain common work-related expenses, such as work-related phone and internet, home office expenses, stationery and some travel expenses. You can't claim the $1,000 and then claim those same expenses again separately. If you have actual work-related expenses of more than $1,000, you can continue to claim your actual expenses under the existing rules, provided you meet the requirements and have the records to support them. Do I Still Need to Keep My Receipts? Yes: and this is where it is worth being organised. If you use the standard deduction, you don't need to substantiate the individual expenses covered by it. But if you think your actual work-related expenses could be more than $1,000, keeping your receipts and records throughout the year will allow you to claim your actual expenses instead. There are also some deductions that aren't covered by the standard deduction and can still be claimed separately if you are eligible. It's for Your 2027 Tax Return The new deduction applies from the 2026–27 financial year, so you won't use it for the tax return you are preparing now. It will first apply to your 2027 tax return, lodged from July 2027. Is the $1,000 a $1,000 Tax Refund? No. The $1,000 is a deduction from your taxable income. It doesn't mean you'll receive an extra $1,000 back from the ATO. The value of the deduction will depend on your individual tax circumstances. What Should You Do Now? The best thing you can do is keep track of your work-related expenses throughout the 2026–27 financial year. When it comes time to prepare your 2027 tax return, we can look at your circumstances and determine whether the standard deduction or claiming your actual expenses is likely to give you the better outcome. At Ascent Accountants, we can help you make sense of the new rules and make sure you're claiming the deductions you're entitled to: without claiming the same expense twice!
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