Early Tax Lodgement warning for Australians in 2024

Tax Lodgement steps taken by the Australian government to support individuals and businesses have resulted in shrinking government revenue. This year, the focus is to rebuild the economy through the JobMaker budget and tax offsets such as the Low Middle Income Tax Offset (LMITO). From a tax perspective, legislated personal tax cuts are a crucial feature of this year’s budget, along with a range of measures to stimulate employment and business investment.

Including the temporary loss carry-back for companies with a collective turnover of less than $5 billion. The Institute of Public Accountants (IPA) has revealed an important detail, and all we can predict is a wave of money crossing your bank shore. The good news is that taxpayers may be eligible for a larger-than-expected refund to be processed to their bank account. This has been predicted due to a combination of three factors, as predicted by the IPA

The continuation of Low Middle Income Tax Offset (LMITO)

This is designed to reduce the tax paid by low to middle-income earners. The LMITO was classified as a temporary measure until the EOFY 2022, when individuals may be eligible to receive up to $1080 for their tax refund.

Tax Lodgement stage two tax cuts worth up to $800

With four and a half months of stage two tax cuts. The non-salary and wage earners can take advantage of the tax cuts by varying their BAS for September (quarterly instalment). This is also applicable for small-business entrepreneurs, mostly unincorporated entities, who may also benefit from stage two.

Claims for Work from Home expenses can be valued up to $1500

Individuals and businesses working from home may be eligible for claims valued up to $1500. However, this entirely depends on all the deductible running expenses such as electricity, heating, cooling, internet and phone costs. Moreover, the decline in the value of laptops, computers and home office furniture will also be considered. Claiming work-from-home expenses is suitable but be careful, as this year’s tax requirements have been modified due to ATO changes for claiming WFH expenses.

Warning – Do not attempt “COPY-PASTE” when filing tax returns in 2024 As per the director of The Kalculators, Mr Ulah, “Due to the loss of earnings and employment, individuals are worried and trying to make their tax refund a priority. However, we advise them to prepare the relevant tax information on their end and wait, until the ATO finalises their prefill information and income statements.” Our experts advise, that the initiative of early lodgement may be great, but we urge them to wait strongly and complete their tax preparation to maximise their tax refund 2024.

Why you can lodge your tax early

it will be easier to file your return. If you file your tax return early and make a mistake, it could cost you a lot of money. To make sure you meet all of your tax obligations and are qualified for all refunds, this is where hiring a tax professional can help with the whole process. Being told you have to pay a tax bill to the Australian Taxation Office right before you leave the country for good is the last thing you want to deal with when you are leaving. There is always the extra burden of interest on any amount owed. It's a good idea to talk to a tax expert who can help you figure out what you can and cannot claim. If you need help in getting a good tax preparer, read our guide on How to Find The Best Tax Preparer or Tax Advisor. However, if you are in Adelaide or its environs, The Kalculators is the right tax agent you need this season.

When exactly should you lodge your tax return?

Waiting until at least the middle of July, when your income statement should be available, is a recommended course of action. On the other hand, individuals who want to be safe should wait until the end of the month to decide. The Australian Taxation Office (ATO) can incorporate information from employers, banks, private health insurers, and government agencies into your tax return if you wait until the end of July to file your return.

Conclusion

ATO gives this warning because every tax year comes with new information that needs to be implemented. Tax return 2024 is here, and you need to ensure you always get the right information. Waiting a few days is advisable so you don’t miss out on filing your taxes the right way. However, this doesn’t mean you should file your taxes too late. This can get you penalised by the ATO. The good news is you don’t have to go through this tax season alone, The Kalculators has got you. We help Australians file their taxes without stress. Don't wait – start your tax journey now for a smoother filing experience!

Still have questions? Speak to our experienced accountants for further information on your 2021 tax lodgement. Give us a call at (08) 7480 2593