We Bust Common Tax Time Myths
The grape vine spreads news fast, but how do you really know if it’s true? Gossip won’t get anyone far at tax time. So let’s take a look at what we hear the latest myths are, that are travelling the grape vine. And keep yourself out of trouble this tax time.
Every year, thousands of tax returns require amendment. Some even done by taxpayers on their own returns before they are processed. Half a million individual tax returns were amended last financial year. By understanding a few of the common misconceptions, tax time may run a little smoother.
Here are some tax time myths busted:
- Bank details don’t update themselves
Although the ATO receives information from banks, this does not mean that details of a bank account where a taxpayer wants their refund deposited also updates.
- Do not double dip
With changes to claiming working from due to COVID-19, there is concern that taxpayers will either accidentally or deliberately claim the 80 cents per hour shortcut method as well as claiming for specific items such as laptops or desks.
If claiming under the shortcut method, individual expenses cannot be claimed for.
- Home to work travel is not claimable
In any normal circumstances, travel costs from home to work are not generally claimable. If you have been working from home due to COVID-19, but do need to travel the office occasionally, this is still classed as a private expense.
Don’t pay a cent more than you have to
At Modoras, we have a number of tax professionals perfectly positioned to ensure you make the most of Government initiatives and tax changes this tax time. Book an appointment today.
Want to know more?
For everything tax related from tax tip videos to webinar recordings, we’ve put it all together on one page. Check it out here. This page will be regularly updated during tax time, so remember to check back in for more value-packed information.
Below are some articles that may interest you:
- Want to Boost Your Tax Return?
- How to Minimise EOFY Stress
- Reduced Tax Rate for SMEs from 1 July 2020
- Are you entitled to the Federal Government Stimulus Package
- Government Stimulus Package for Business
- Australian Tax Office Relief
We’re here to support you through the changes. From making the most of the stimulus initiatives, through to managing the risks associated with the impact of the Coronavirus, the Modoras team is here to help you build a resilient business. Make well-informed business decisions; contact us on 1300 888 803 book a catch up with a Modoras professional.
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