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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If your business provides a car to an employee (or you’re the business owner/employee using it), there’s a good chance the Fringe Benefits Tax (FBT) rules apply. A car fringe benefit arises when a car owned or leased by an employer is made available for the private use of the business owner, an employee or their associate (such as a family member). “Private use” doesn’t just mean weekend road trips — it can include everyday commuting and even cases where the car is parked at an employee’s home, making it available for personal trips. Understanding how FBT is calculated and what records to keep is essential for compliance — and for avoiding paying more tax than necessary. What counts as a “car” for FBT purposes? The FBT law defines a car as a motor vehicle (except a motorcycle or similar) designed to carry less than one tonne and fewer than nine passengers. From 1 July 2022, some zero or low-emission vehicles are exempt from FBT, provided they meet certain criteria — for example, they must be first held and used after 1 July 2022 and must not have attracted Luxury Car Tax. Electric vehicle running costs, such as charging, are also exempt when the vehicle itself qualifies. Two main methods for calculating FBT on cars There are two ways to calculate the taxable value of a car fringe benefit. 1. Statutory formula method This method applies a flat 20% statutory rate to the base value of the car, adjusted for the number of days in the FBT year the car was available for private use. The formula is: (A × B × C ÷ D) − E A = Base value of the car (cost price plus GST and certain accessories, less registration, stamp duty and eligible reductions) B = Statutory fraction (generally 20%) C = Days available for private use D = Total days in FBT year (365) E = Employee contributions If the car has been owned for at least four full FBT years, the base value can be reduced by one-third. 2. Operating cost method This method calculates the taxable value by applying the private use percentage to the total operating costs of the car (actual and deemed costs). The formula is: Taxable value = [Operating costs × (100% − Business use %)] − Employee contributions Operating costs include: Fuel, oil, repairs, maintenance, registration and insurance Lease costs (for leased cars) Deemed depreciation (25% diminishing value) and deemed interest for owned cars Certain costs, such as tolls, car parking and insurance-funded repairs, are excluded. The business use percentage is determined by odometer readings, logbook records, and a reasonable estimate based on usage patterns. The three-month logbook requirement (operating cost method only). If you use the operating cost method, you must keep a logbook for at least 12 continuous weeks (roughly three months) to record: The date of each trip Odometer readings at the start and end Total kilometres travelled Whether the trip was for business or private purposes The purpose of each business trip This logbook is generally valid for five years, but you must start a new one if usage patterns change significantly (e.g., a role change, relocation or different duties). You also need to record odometer readings at the start and end of each FBT year. Why record-keeping matters. Keeping accurate records can support a higher business use percentage (and therefore a lower FBT bill). They also ensure you claim only legitimate business kilometres and help you provide evidence if the ATO reviews your FBT calculation. Finally, your records help you decide which calculation method (statutory or operating cost) is more tax-effective. Key takeaways for businesses and employees. If a car is available for private use, FBT may apply — even if the car isn’t driven often for personal trips. Electric cars may be FBT-exempt if they meet eligibility criteria, but you may still need to calculate their taxable value for reporting purposes. The operating cost method often works better if business use is high — but only if you have a compliant logbook. Keep odometer readings, expense records and a valid logbook to support your claims. Need help with your FBT obligations? Get it at Ascent Accountants. We guide business owners through every step of FBT compliance — from choosing the right valuation method to maintaining the right records for ATO peace of mind. If you provide cars to employees or use a company vehicle yourself, now is the time to review your FBT position before the next FBT year rolls over. Let’s talk .
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