It has been two months since you entered the new tax year. Have you returned your tax and received the tax rebate?. Some people, after receiving retirement, are planning how to spend the money. However, other people do not have such an interest because they receive obviously less tax rebates than expected, and some people even have to pay a replacement tax. If you are a member of the tax rebate, have you ever thought about the reason?.
Russell (Liz Russell), senior tax adviser at Etax.com.au, says if you find that you receive less tax rebates than expected, the best thing to do is to consult a tax consultant who can give you a comprehensive analysis of your personal situation. Find out if there is anything wrong and discuss it with the Inland Revenue Department on your behalf.
Russell pointed out that in doing so, not only would it be possible to find an answer, but you would also be able to demonstrate to the Inland Revenue Department your willingness to co-operate in order to avoid additional fines arising from the alleged default on taxes; What's more, if you don't do anything, the arrears will generate interest and even be referred to a "recovery company" to collect the arrears.
So why are you expected to receive a small tax rebate or even be accused of failing to pay enough tax? Here are five main reasons to see if your situation is similar.
Reason 1: part-time work in spare time
To increase income, many people do part-time jobs in their spare time, such as running a small business on their own, or even creating extra income through Uber and Airbnb in an increasingly popular shared economy. The problem is that under the traditional domestic helpers contract, employers will withhold taxes in advance when they pay their wages, but many people have neglected to set aside another tax for part-time jobs.
In addition, if you have two jobs, the increase in income may also be added to the higher tax band, where some of the income is taxed at a higher tax rate.
Reason 2: employers are undertaxed
In some cases, if the employer receives a bonus or overtime allowance, which causes the employer to be included in a higher tax band, or therefore exceeds the threshold for repayment of the HELP (Higher Education Loan Programme, higher education loan), This may lead to insufficient tax deductions.
The Inland Revenue Department's website features a "withholding income tax calculator" (Tax Withheld Calculators), which includes student loans, tax write-offs, and health care tax exemptions to give you a rough idea of how much tax you need to withhold on your income.
Reason 3: transfer of government debt
If you owe to the Centrelink, Inland Revenue Bureau or the Family Aid Office (Family Assistance Office), your tax rebate will automatically be transferred to the bank account that you use to collect the tax rebate.
Reason 4: increase in tax allowance
If you are an Australian tax resident (Australian Resident for Tax Purpose), you are entitled to an annual allowance and the current allowance is $18200. However, some people who have two jobs claim a tax allowance at the same time. In this case, the withholding tax will be less than the amount of tax deductible. Only after the tax return has been made will it be found that they have not paid enough tax. As a result, the amount of tax rebate is less than expected. Even less tax is collected by the Inland Revenue Department because only one job a year is eligible for an allowance.
Reason 5: mistakes and omissions in tax returns
When the taxpayer fills out the tax return, whether it is an inadvertent loss or other causes, such as understatement of taxable income such as bonus, bank interest and overseas income, the taxpayer has declared an unqualified tax exemption from the tax return, whether it is an inadvertent loss or other reasons leading to an error in the tax return, such as understatement of taxable income, Or when applying for tax deductible expenses related to the job, there are not enough documents to prove it.
After the IRD fixed these mistakes, taxpayers would naturally have to refund the undertax, and in some cases they would have to pay interest on their arrears or even be paid for alleged overstatement.
