Frequently Asked Questions

Please read our history area. We are the pioneers of fast tax refunds. We coined many phrases such as Cash for tax, same day tax refunds and of course our main slogan tax refunds on the spot! Taxtips started out some 20 years ago and over the years have developed a sophisticated internal control system. Such a system ensures our clients the most timely tax returns and tax refunds services with minimum complaints. We can prepare your tax return and due to our complete system are able to accurately estimate your tax refund. We can then pay your tax refund on the spot after we deduct our fees. We are Australia’s largest and fastest tax refunds specialist.

Others that claim to be the leaders in instant tax refunds services are misleading you. We challenge any false pretender to confront Taxtips now and we shall prove we are the largest fast tax refunds provider in Australia and the genuine founder of Tax refunds on the spot!

The ATO will generally deny an expense claim against your tax return unless you have a receipt to support your claim. If you lose your receipt, try to obtain a signed copy. It is a good idea to pay all your work expenses using your credit card and attaching your receipts to the monthly statement. Keep all this in an Arch Lever folder and bring it along to your tax agent when you are due to lodge your tax returns. Note credit card statements are not sufficient evidence to support a tax deduction against your income. So always attach your receipts to your monthly statements to keep them safe. Doing so will almost always result in getting higher tax refunds when you lodge your tax returns.

Be very careful accepting suggestions from tax accountants and tax preparers to make outrageous claims without supporting expense receipts. The ATO will eventually catch up with these doggy accountants and it is you that will end up paying it all back to the ATO plus huge penalties and interest.

You are only protected from interest and penalties due to a genuine mistake but not from choosing a fraudulent tax agent who may give you the wrong advice.

The general rule is if you incurred an expense for the purpose of earning your income, then you will most likely be allowed to claim that expense in your tax return and get a higher tax refund. However, in some cases your expense may not be allowed in full where part of that expense is connected to a private use component. Example; you buy a computer you use for work purposes at home by logging onto your work email, or other work related internet searches and you only use your computer about 50% of the time for work purposes. In this case, you can only claim 50% of your internet costs and only 50% depreciation on your computer. The private use component you cannot claim in your tax return. If the ATO assesses you to only have used your computer for say 25% and you claimed 50%, then you will be asked to repay part of your tax refund plus penalties.

You have from 1 July to 31 October to lodge your tax returns. You maybe entitled to an extension of time to lodge through your registered tax accountant. If you have a tax liability with the ATO you should try to lodge your tax return within these dates to avoid a potential penalty. If you are due a tax refund, you may not be penalised for lodging your tax return late unless you were asked by the ATO to lodge your tax returns on an earlier date.

In our experience at Taxtips, we find that over 95% of taxpayers that lodge their tax return are due for a tax refund. If you have not received a letter from the ATO warning you to lodge your tax return for any of the years you have not yet lodged, then hurry. If you lodge all your returns now and are due a tax refund in 95% of cases you may avoid penalty. Call Taxtips now for an appointment and ask for an instant tax refund. That’s right, we can prepare your tax return and we can pay your tax refund on the spot.

The advertised length of time is up to 14 days but in some cases it could take longer. However, if you need your tax refund paid to you the same day, call Tax Tips today. That’s right, we have tax preparers that can complete your tax returns and on the same day pay your tax refunds as an instant tax cheque.

All employers are required to provide a group certificate (PAYG) to employees by 14th July. However, many employers are late in doing this due to lack of knowledge of this requirement or due to poor internal control systems. Some employers are just too lazy and could take months after the due date.

A good idea is to keep your last pay slip which can show probably all the information your tax accountant needs to know. In some cases, the group certificate information will display on the tax agents portal. You may also obtain a statutory declaration and lodge your tax returns without the group certificate.

For over 10 years now Taxtips has provided various bodies in the ATO with ideas on how to centralise the issuing of group certificates. It is our idea that group certificates should only be internet based and all controlled by the ATO. Employers would download ATO software that is used to make employment payments and a copy of all transactions is then automatically sent to the ATO site to update taxable income. At the end of the financial year when lodging your tax returns comes about, accountants and tax preparers can log onto the tax agents portal and have instant income tax information that is accurate. There would be no need to issue paper to anybody. It would also greatly minimise group certificate fraud.

Remember when you lodge your tax returns think of Taxtips who gave you this tax tip. If you are due to receive a Tax Refund then ask for an instant tax return and an instant tax refund paid to you as an instant tax cheque today.

How long do I need to retain my expense receipts which I have claimed as deductions against my taxable income?

You are required by law to keep your receipts for a period up to 5 years from the date you lodge your tax return. We suggest you buy an A4 envelope and mark it with the year of tax. Place all your receipts in it and store it away in a safe place. In 5 years time you can toss it in the bin.

For more information about keeping your income tax records after lodging your tax return click on this government site
http://www.ato.gov.au/individuals/content.aspx?doc=/content/30327.htm&page=3&H3

What is a Notice of assessment (NOA)?

When you lodge your tax return with the ATO, you will receive a notice of assessment (NOA). It will indicate how much tax you owe on your taxable income or how much tax refund you received (a refund cheque is usually attached). Your notice of assessment is an important document so keep it safe.

If you lodge tax return at Taxtips and got your tax refund on the spot, you will have received your refund cheque from Taxtips on the day you lodged. Taxtips will then wait the usual 14 days to receive your tax refund from the ATO and bank it. You will receive in the post a Taxtips cheque along with your notice of assessment if a balance is still owing to you.

Taxtips retains a copy of your notice of assessment for up to 5 years. So if you lose your NOA please call your Taxtips branch and we can either mail, email, or fax a copy to you. No problems!

I used ETax or E-Tax but still waiting too long for my tax refund. How can I speed this up?

Taxtips specialises in providing fast tax returns services and fast tax refunds. At Taxtips we have professional accountants and tax agent preparers that complete 100’s of tax returns each day. Tax returns are then lodged on the spot and we can pay instant tax refunds the same day as a cash cheque. Our instant tax cheques are like a Cash Loan on the spot which is repaid when we receive your tax refund from the ATO within 14 days or longer. That’s right, an instant tax return and instant tax refund without the 14 day waiting period.

How can I verify a Donation is tax deductible against my income

First you will need a receipt to confirm you made the donation. The receipt should contain a registration number showing the charitable institution is approved and donations to it are tax deductible. To be safe, check this site http://www.irs.gov/charities/article/0,,id=96136,00.html and confirm the organization is on the accepted list.

Do I pay tax on bank interest earned on my deposits and dividend received on shares I buy?

You may qualify for some exemption on interest earned on deposits under certain government schemes designed to help you save for your first house – see headings further below. Otherwise, both interest earned on deposits and dividends received on shares must be included as taxable income in your tax return and this will have an effect of reducing any tax refund you may be due. This is true for individual taxpayers. However, for share traders and business tax returns you will need to contact one of our many Taxtips tax professionals to see if you qualify as a share trader or share investor. Each has different tax implications.

As an individual taxpayer, if your total income for the year is under $6,001 which includes any interest and dividends earned, then you will not be required to pay tax if you are a resident taxpayer. Taxable Income earned between $6,001 to $37,000 is only taxed at 15%.

Is a gift I receive from work, family, or friend free of tax?

In Australia, as an individual, we are generally taxed by the ATO on:

• income we receive from employment;
• investment income from interest earned in a bank account or Dividends received from shares you own;
• You may also be subject to Capital Gains Tax (CGT) when you sell a capital asset such as a house or other major asset including shares if you are classified as a share investor.

As a general rule if the Gift is not covered in the above situation then it will not be subject to income tax and does not need to be included in your tax return.

The ATO will ask the question (NEXUS), is there a direct link between the gift and your employment, or in the case of the property the gift and the income stream of rent.

Examples of a gift being a direct link to employment:

• If you get a gift of a car from your employer, then the ATO will probably consider there is a sufficient NEXUS between you receiving the gift and your Job;
• Making a gift payment continuously where it could be interpreted as an income stream. Example; getting a rental discount from your landlord and then making cash payments as gifts each week or month to your landlord;

Examples of gifts not being a taxable item to the receiver of the gift:

• If your Godfather gives you a car for your Birthday then it is not taxable unless you work for your Godfather earning taxable income
• You inherit money and maybe even used some of your own money as a gift paid to your son to buy something like a car;
• You won some prize money and want to give some to your mum to buy a house;

Where can I get information about the Government grant for first home buyers?

Click on this site for more information http://www.firsthome.gov.au/ and to find out if you are eligible click on this site http://www.osr.nsw.gov.au/benefits/first_home/general/eligibility/

Can the Government provide financial assistance to start my business?

if you've made the rounds of the banks and been shown the door, don't give up yet! Click on this site for help:
http://www.australiangovernmentgrants.org/low-interest-no-interest-loans.php
Remember when you lodge your tax returns think of Taxtips who gave you this tax tip. If you are due to receive a Tax Refund then ask for an instant tax return and an instant tax refund paid to you as an instant tax cheque today.

Does the Government provide financial incentives to save for my first home?

Are you saving for your first home? Find out how the Australian government can help by contributing to your savings account so that you can buy your first home quicker. The interest you earn on your deposits can also be taxed at a lower rate. For more information click on this site http://www.mortgagechoice.com.au/buying-first-home/first-home-saver-accounts.aspx

Note if your taxable Income is between $6,001 to $37,000, it means you are only taxed at 15% or less. That means you may not get a tax benefit on this scheme unless your taxable income is above $37,000. However, the government can still contribute 17% on the first $5,500 of your savings you make under this scheme each year and that may be worth saving for.

Remember when you lodge your tax returns think of Taxtips who gave you this tax tip. If you are due to receive a Tax Refund then ask for an instant tax return and an instant tax refund paid to you as an instant tax cheque today.