Knowing when it is best to lodge your tax return is best left to the professionals.
Understanding the pros and cons of lodging your tax return early can make a huge difference to your financial well-being.
Can you lodge tax return before the end of financial year?
The simplest answer is Yes – but only in certain circumstances.
There are only two specific cases when you can lodge your tax return earlier than the 1st of July in the calendar year.
- If you are Foreign Resident for tax purposes AND;
- You are leaving Australia permanently
- You will no longer be receiving Australian income (other than income derived from interest or dividends)
- If you are an Australian Resident for tax purposes AND;
- You are leaving Australia
- You will no longer be an Australian Resident for tax purposes
- You will no longer receive Australian income (other than income derived from interest or dividends)
If either of these two categories can be applied to you and your circumstances, then you can log your tax return before the end of the financial year.
Problems with lodging your tax early
Knowing exactly what is required in terms of your full financial records and what is applicable for the current financial year will make lodging your return easier.
Making a mistake with the early lodgement of your tax return can prove costly.
This is where enlisting the services of a tax professional can help with the entire process to ensure that you meet all your taxation commitments and are eligible for all and any refunds.
The last thing you need when you are leaving the country on a permanent basis is to have to worry about taxation matters and to learn that you have to pay a sum to the Australian Taxation Office. Any amount owing can come with the added burden of accruing interest.
It makes good sense to see a tax expert who can help iron out any problems, discrepancies and confusion over what can and cannot be claimed.
Needing to delay your tax return lodging
It’s not just lodging your tax return early that can affect your tax liability. Sometimes circumstances can mean that you need to delay the lodgement of your tax return.
This is perfectly legal but there are strict guidelines to follow or you may be penalised and even fined.
This is where the cost of your time and effort can be wasted and even counter-productive.
Having the skills of a tax professional working for you means having all the right information and properly documented records at the ready for the lodging of a tax return and for any necessary follow-up.
Taking on this task and the hours it involves is not the most cost-effective and best use of your time. It is better to focus your energy on the other multitude of tasks that you have before you.
This is especially true when you are running your own business.
How to make the most of your 2020 tax return
In the current climate of coronavirus or Covid19 and the ramifications for businesses throughout Australia and the wider world, it’s important to have professional assistance that can help you take advantage of any of the government schemes on offer.
There are multiple schemes that may or may not be applicable to you or your business.
This is where a team of tax professionals can help, including in the areas of;
- The latest in government business schemes
- Preparation of Tax Returns
- Preparation for Tax Audits
- Fringe Benefits Tax
- All BAS – GST & PAYG reporting
Having your finances in the care of the experts at Ruth Watson and Associates can make all the difference.
There’s no need to answer all the complexities that come with a question like “What do you mean by tax return?” and all the finer details that relates to it.
See the experienced team at Ruth Watson and Associates who can help take care of your entire tax compliance. Get in contact today – just Click Here.