Latest news with #taxreturn
SBS Australia
a day ago
- Business
- SBS Australia
Working two or more jobs? Here's how to prepare your tax return
Registered tax agent Jocelyn David recommends waiting for your employers and financial institutions to upload pre-filled income information before lodging. Whether you're working two part-time jobs, doing freelance work under an ABN, or earning a bit on the side, all income must be included in your tax return. Choose your main job to claim the $18,200 tax-free threshold. Your second or third employer should withhold tax at a higher rate. PAKINGGAN ANG PODCAST SBS Filipino 11:55 Filipino The information and explanations in this podcast are for general guidance. For personalised advice and details specific to your situation, please consult a registered tax agent in Australia or refer to the ATO website. 📢 Where to Catch SBS Filipino
Yahoo
4 days ago
- Business
- Yahoo
Aussie 'appalled' by $4,000 ATO bill after common tax return mistake
Welcome to legal column, where lawyers Alison and Jillian Barrett from Maurice Blackburn tackle problems everyday Aussies face — whether it be consumer, property, or money matters impacting relationships or work. This week, an Aussie is concerned about their tax return after finding out they owe the ATO money. Question I recently filled out my ATO tax return, fully expecting a rebate. I only earned $80,000 last year and I had loads of deductions to make. However, I was appalled to find out I actually owe the tax office money — it turned out I'd been on the wrong code all year. They also pushed back on a lot of my deductions and said they weren't tax-deductible work expenses. Now I have a bill for $4,000 and no means to pay it. Is there anything I can do to dispute my tax bill? Also, why aren't things like my work clothes and my travel to work claimable on tax when I wouldn't use them if I didn't work? RELATED Common neighbour problem plaguing Aussie houses: 'No right' Warning for working from home Aussies over common practice Little-known cryptocurrency detail that could impact millions: 'Lost forever' Answer Receiving an unexpected tax bill can be a distressing experience, particularly when you're anticipating a refund but instead are hit with a bill. Generally speaking, the amount of tax that is deducted should be accurate so that a person does not get a large tax bill or a large refund. There are exceptions to this, including if there are large legitimate deductions that can be made, which would result in a refund. However, if you've been on the wrong tax code throughout the year, insufficient tax would have been withheld from your income, resulting in a liability to the Australian Taxation Office (ATO). Your first step should be to understand the basis of the tax debt. If the ATO has rejected certain deductions or identified an incorrect withholding rate, you are entitled to request a detailed explanation. The ATO provides mechanisms for taxpayers to dispute assessments. You may lodge a formal objection under Part IVC of the Taxation Administration Act 1953. The formal objection must be submitted in writing and within the prescribed time limits (generally within two years of the notice of assessment for individuals). The objection should clearly state the grounds on which you disagree with the assessment and include supporting documentation. What happens if you can't afford to fight an ATO debt? If you are experiencing financial hardship and cannot afford professional representation, you may be eligible for assistance through the National Tax Clinic program. These clinics, often run by universities, offer free help to individuals who need support navigating the tax system. Additionally, the ATO offers a service called Dispute Assist, which facilitates early resolution of disputes for unrepresented taxpayers. In cases where the issue stems from incorrect information in your tax return, such as misreported income or overlooked deductions, you may be able to amend your return online via myGov. This is often a faster and more straightforward process than lodging a formal objection. How can I know what is and isn't a work-related expense for the ATO? In relation to work-related expenses, the Australian tax law draws a clear line between deductible and non-deductible items. The general principle is that expenses must be incurred in the course of earning assessable income and must not be private or domestic in nature. Work clothing is only deductible if it is occupation-specific, protective, or a registered uniform. For example, knives for a chef or a high-visibility vest may qualify, but conventional business attire, even if required by your employer, does not. This is because such clothing can be worn outside of work and is therefore considered private. Similarly, travel between home and your regular place of employment is generally not deductible. This is classified as private travel, even if you perform work-related tasks during the commute. Exceptions exist for travel between multiple work sites or if you are required to transport bulky equipment and have no secure storage at your workplace. While the tax system may seem unforgiving, there are legal avenues available to dispute assessments and seek relief. Understanding the rules around deductions and engaging with the ATO through formal channels can help resolve your situation. If needed, seek professional advice or contact a tax clinic to ensure your rights are protected. This legal information is general in nature and should not be regarded as specific legal advice. If you need legal advice, you should consult a in retrieving data Sign in to access your portfolio Error in retrieving data
Daily Telegraph
22-07-2025
- Business
- Daily Telegraph
'The way I gasped!' Aussies gobsmacked over Gen Z's way of doing their tax returns
Don't miss out on the headlines from Lifestyle. Followed categories will be added to My News. A Gen Zer has left older Aussies gobsmacked after revealing how she submitted her tax return this year. In a revelation that would blow the mind of any Baby Boomer, Melbourne woman Paije recently divulged that she does her taxes each year using nothing but her smart phone. 'I just saw a video on my for you page where they were talking about that thing where some purchases you can do on your phone but big purchases have to be on your laptop,' the 28-year-old explained. 'I would like everyone to know that I did my taxes on my phone. I do everything on there.' Want to join the family? Sign up to our Kidspot newsletter for more stories like this. The 28-year-old worker received a lower tax return than previous years. Picture: @princesspeeny/TikTok For more stories like this, visit: Everything is on the phone The laptop Vs phone debate has gained traction in recent years. For Gen Zers who grew up as digital natives, they wouldn't think twice about making big purchases or completing in-depth tasks on their phone. For Millennials and other generations, things they consider 'major' tasks, such as purchasing a plane ticket, are reserved for the laptop, with the idea of being left with nothing but their mobile enough to send them into a panic. So, when Paije made her tax return confession, there were plenty of older Aussies who couldn't comprehend how she could complete such a significant task without whipping out her laptop. 'The way I gasped. Not on your phone,' one person said, with another joking, 'this feels illegal'. 'I didn't think anything at tax time could be worse than people saying getting a return just means you paid too much during the year, then I saw this,' another said. One person branded it 'criminal', adding that flights, tax and online furniture shopping are all laptop tasks. Another added: 'No way, that's definitely a desktop job.' However, there were plenty of people who saw no issue with it, with others claiming it is easier to do your taxes on your phone, particularly if you use the ATO app. 'I haven't opened my laptop since high school in 2019, I use my phone for everything,' one person said. Speaking to Paije said she wanted to tap into the running joke that older generations think some activities should only be done on laptops. 'I suppose I fall into that more Type B personality type and my attitude is that a phone is just a mini computer now,' the 28-year-old said. She also noted that the ATO's myDeductions app has become increasingly user friendly, making it really easy to do your tax return with nothing but your phone. In another video, Paije revealed she was getting a $921 refund after submitting her tax return, a figure she says is the 'worst' she has ever received. While the young worker understands that getting a smaller or no return means you have paid the correct amount of tax throughout the year, she noted that 'it still hurts'. In previous years, after submitting the same kind of deductions she did this year, her return would be in the $1500 to $2000 range. She also touched on her increasing HECS-HELP debt, which is currently sitting at almost $92,000. On June 1, indexation of 3.2 per cent was applied to all student loan debts. RELATED: Easy way to minimise the amount of tax you pay Paije said doing your taxes on your phone is a lot easier than people think. Picture: ATO Hecs and tax - what students need to know While there have been welcome changes to the way indexation occurs, with the lower of either the Consumer Price Index (CPI) or the Wage Price Index applied, there is still a lot of contention around the process. While payments towards your HECS debt are taken out of your pay in real time, that money is not coming off your debt at the same rate. Instead, the ATO holds these funds as a credit until you file your tax return on or after July 1. But, because indexation occurs before this on June 1, your past contributions are actually applying to the higher indexed rate, despite coming out of your pay much earlier. Because of this, many people with student loans feel like they will never see their debts reduce. 'The indexation from the last few years means that you're not really paying anything off because it just gets added again,' Paije said. She has two bachelors degrees and is currently doing her Masters and says the idea of paying off the debt doesn't even cross her mind anymore. 'I don't see it ever happening and so the best thing to do it just ignore it. Since the payments come out of my pay each fortnight I never see the money anyway, so I am kind of just choosing peace and pretending it doesn't exists,' she said. 'It would be too much mental effort that I don't have to care about it.' Originally published as 'The way I gasped!' Aussies gobsmacked over Gen Z's way of doing their tax returns
News.com.au
21-07-2025
- Business
- News.com.au
Gen Z reveals how she did her tax return this year, leaving older Aussies gobsmacked
A Gen Zer has left older Aussies gobsmacked after revealing how she submitted her tax return this year. In a revelation that would blow the mind of any Baby Boomer, Melbourne woman Paije recently divulged that she does her taxes each year using nothing but her smart phone. 'I just saw a video on my for you page where they were talking about that thing where some purchases you can do on your phone but big purchases have to be on your laptop,' the 28-year-old explained. 'I would like everyone to know that I did my taxes on my phone. I do everything on there.' The laptop Vs phone debate has gained traction in recent years. For Gen Zers who grew up as digital natives, they wouldn't think twice about making big purchases or completing in-depth tasks on their phone. For Millennials and other generations, things they consider 'major' tasks, such as purchasing a plane ticket, are reserved for the laptop, with the idea of being left with nothing but their mobile enough to send them into a panic. So, when Paije made her tax return confession, there were plenty of older Aussies who couldn't comprehend how she could complete such a significant task without whipping out her laptop. 'The way I gasped. Not on your phone,' one person said, with another joking, 'this feels illegal'. 'I didn't think anything at tax time could be worse than people saying getting a return just means you paid too much during the year, then I saw this,' another said. One person branded it 'criminal', adding that flights, tax and online furniture shopping are all laptop tasks. Another added: 'No way, that's definitely a desktop job.' However, there were plenty of people who saw no issue with it, with others claiming it is easier to do your taxes on your phone, particularly if you use the ATO app. 'I haven't opened my laptop since high school in 2019, I use my phone for everything,' one person said. Speaking to Paije said she wanted to tap into the running joke that older generations think some activities should only be done on laptops. 'I suppose I fall into that more Type B personality type and my attitude is that a phone is just a mini computer now,' the 28-year-old said. She also noted that the ATO's myDeductions app has become increasingly user friendly, making it really easy to do your tax return with nothing but your phone. In another video, Paije revealed she was getting a $921 refund after submitting her tax return, a figure she says is the 'worst' she has ever received. While the young worker understands that getting a smaller or no return means you have paid the correct amount of tax throughout the year, she noted that 'it still hurts'. In previous years, after submitting the same kind of deductions she did this year, her return would be in the $1500 to $2000 range. She also touched on her increasing HECS-HELP debt, which is currently sitting at almost $92,000. On June 1, indexation of 3.2 per cent was applied to all student loan debts. While there have been welcome changes to the way indexation occurs, with the lower of either the Consumer Price Index (CPI) or the Wage Price Index applied, there is still a lot of contention around the process. While payments towards your HECS debt are taken out of your pay in real time, that money is not coming off your debt at the same rate. Instead, the ATO holds these funds as a credit until you file your tax return on or after July 1. But, because indexation occurs before this on June 1, your past contributions are actually applying to the higher indexed rate, despite coming out of your pay much earlier. Because of this, many people with student loans feel like they will never see their debts reduce. 'The indexation from the last few years means that you're not really paying anything off because it just gets added again,' Paije said. She has two bachelors degrees and is currently doing her Masters and says the idea of paying off the debt doesn't even cross her mind anymore. 'I don't see it ever happening and so the best thing to do it just ignore it. Since the payments come out of my pay each fortnight I never see the money anyway, so I am kind of just choosing peace and pretending it doesn't exists,' she said. 'It would be too much mental effort that I don't have to care about it.'
Yahoo
21-07-2025
- Business
- Yahoo
How to build passive income
It's the time of year when passive income becomes a buzzword. People look out of the window from their desk and think: "Wouldn't it be nice to spend the day out there in the sun — and still earn money". In the UK, we often associate passive income with property, and imagine an easy life as a rich landlord. In reality, this can be harder work than you might think and there are several things to consider before you jump in. There are a number of ways that people tend to get property working for them. At the most accessible end of the spectrum, they might let their property out while they're away on holiday, or rent a room in their home to a lodger. Those with more assets might choose to buy a rental property for a regular income that way. Whatever option you choose, don't overlook a potential tax bill. You have an annual allowance of £1,000 you can make from property. Plus, if you rent out a furnished room to a lodger in your home, the rent-a-room scheme means you can make £7,500 from it without paying tax. However, after that, you will need to consider income tax on any rent, and will probably have to complete a self-assessment tax return. If you buy a property specifically to make money from it, you also have to factor in extra stamp duty when you buy and potential capital gains tax when you sell. Read more: Do you trust your partner enough to give them money for tax purposes? It's not just the tax return you have to worry about. Before you start letting out your own home, you need to consider home insurance and check your mortgage documents to see if this sort of thing is allowed. For long-term lets, getting hold of tenants and vetting them requires some legwork — unless you're prepared to pay a company to manage this for you. You'll also need to keep on top of rental income and be prepared to chase if you don't get the payments you're expecting. If the tenants refuse to pay, then you're could be in a whole new realm of paperwork dealing with the courts. There's also the management of the let to consider too — for short-term renters there may be questions ahead of every visit, and issues when guests arrive, plus cleaning and maintenance before and after the visit — and possibly during. For long-term lets there will be maintenance to do between tenancies, plus ongoing repairs and emergencies. You'll need to choose between being on call day and night, or paying a company to do this for you. The cost of these things will eat into any rent you make. You also need to factor in any periods when the property isn't let — and any time when the tenants don't pay. Plenty of people rent out property without any major issues, but if you're considering it, it's vital to go in with your eyes open to the work and costs involved. An alternative way to build passive income An alternative way to build passive income, without this level of hassle, is to invest. You can hold a portfolio of investments that are designed to produce an income, and aside from revisiting the portfolio every few months, there's no extra work to do. If you invest through stocks and shares ISAs, you can do so without having to worry about tax or doing a tax return. There is some work needed at the outset, to get to grips with investing, and building a portfolio that's right for you. You can pay a financial adviser to guide you with this, or you can read articles and guides and build the knowledge yourself. Often the easiest approach is to get started with regular small sums drip fed into a diverse fund, and build your portfolio and your knowledge as you go along. Plus, at this time of year, it's the sort of thing you can do while sitting on a sun more: How to start investing with an employee share scheme How your health can affect your pension How to save money on your council tax billError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
