The lodging process to submit a tax return is not as challenging or scary as people may think.
The Australian Taxation Office offers free tax return services for employees, traders or businesses. You will pay service fees if you appoint tax agents or tax accountants to lodge tax returns on your behalf. Alternatively, you can fill in the tax return forms and seek tax reviews yourself. A registered tax agent will guide you through the tax return policies and processes to ensure you get the most appropriate refund. Tax return costs are tax-deductible. Personal tax return accountant fees range from $75 to $220 on average, while the median ranges between $90 to $130 across various states. To avoid fines and penalties you need to lodge your tax refund claim before the deadline date of 31st October every year and ensure all income data entry is from the 1st July to 30th June.
You don't pay any amount to access or lodge tax returns. However, there is a tax return price to pay if you hire tax agents to lodge on your behalf. Also, it's good to note; you have several options to choose from when filing a tax return or refund. These include online tax platforms like the myTax portal, using a registered tax agent, and filing tax return papers, among others. Before claiming a tax refund, ensure you have:
Bank statements and account details.
Payment proof from all your employers.
Receipts of all your expenses.
Spouse income statements if married.
Insurance information if you have a private health cover.
Summary of payment from Centrelink .
The cost of hiring an accountant depends on what service you want. For instance, the average cost of bookkeeping services is about $40/hr, while tax services range from $60/hr.
For those in need of business accounting and advice, the average rate stands at $48/hr.
The hourly rates vary across the various states. For example, an accountant based in New South Wales charges on average $35/hr for bookkeeping services, while in Victoria it's $37/hr. For those in Queensland, they ask approximately $44/hr for the same service. Chartered Accountants are also a popular choice for specialised work.The lodging process is not as challenging or scary as often portrayed.
The Australian Taxation Office has a helpful program, myTax, which provides users with crucial information and pre-fills a lot of data.All you need to know is which deduction you can rightfully claim. Common expenses that qualify for deductions include work-related, self-education, donations, and fees for tax return services. The latter only applies if you hire an accountant.