ATO tax time 2022: Australians received nearly $2,900 in refunds last year as Australian tax office warns of four key mistakes
The Australian tax office says Australians received an average of nearly $2,900 in their tax returns last year.
With tax time weighing on us again, the numbers reveal how many returns the ATO processed last year.
Assistant Commissioner Tim Loh told 7NEWS.com.au that more than 9.92 million individual refunds had been issued as of April 7 this year.
For more news and videos about Personal Finance, go to Personal Finance >>
†[This] totaling more than $28.64 billion with an average repayment of $2887,” he said.
With millions receiving a one-time $420 compensation to address living expenses, that amount is likely to be higher this year.
The Australian tax office says Australians received an average of nearly $3,000 in their tax returns last year. File image. Credit: AAP
Australians can start filing their tax returns from July 1.
But industry experts warn that waiting a few weeks could benefit taxpayers.
The ATO cannot process returns until it has all the relevant documentation from employers or other payment channels, such as Centrelink.
“August is a really good time to file your tax returns because by then, the ATO systems are running at full speed; all pre-populated data should be on the system,” said Mark Chapman, director of tax communications at H&R Block.
“And so you can be pretty sure you’re filing an accurate return.”
Watch the video below: How to save money during tax time
Play video
How to save money during tax time this year
How to save money during tax time this year
How long it takes to receive your refund depends on how you file your return.
You can log in yourself, on paper or online, or through a tax advisor.
If you log in online through MyTax, the ATO says it usually processes refunds within 14 days.
But that doesn’t mean it doesn’t address unreliable returns.
It previously released a four-point “hit list”.
These are working from home expenses, property, cryptocurrency, and messy administration.
ATO Assistant Commissioner Tim Loh. Credit: The Morning Show
The latest census data has been released. Here’s proof of how life is changing in Australia
The Dates You Need to Know to Avoid an $1100 Tax Time Fine
Chapman said the ATO was “particularly” interested in remote work deductions
The ATO had implemented a temporary “shortcut method” to calculate operating expenses for home workers, allowing them to claim a rate of 80 cents per hour of work.
But it can limit your returns.
“If you use the 80 cents per hour method, you can’t make any other claims regarding working from home.
“So things like cell phone and internet use are included in the 80-cent rate.
“Alternatively, you can claim the ATO’s existing flat-rate allowance for working from home of 52 cents per hour.
“This covers the extra costs of heating, cooling, lighting, and furniture depreciation. All you need to do to claim this is to keep a journal – write down the time you start work each day, finish each day and any breaks you take. You can then claim 52 cents per hour squared worked.”
The difference between the two rates, he says, is that the 52-cent method lets you file separate claims for work-related parts of the Internet, cell phone charges, and other items.
“These additional costs often make this a preferred method because the size of the claim is often much greater than the 80-cent rate.”
In the video below: Winners and losers of this year’s federal budget
Play video
Federal Budget winners and losers.
Federal Budget winners and losers.
He also warned against making the common mistake of trying to claim rent.
“So-called ‘occupancy costs’ cannot be claimed,” he said.
“These are mortgage interest (for homeowners), rent, rates, and home insurance. These are ‘fixed’ costs and do not change just because you work from home.”
The exception, he says, is when someone is running their business from home.
If so, part of the occupancy can be claimed, but you risk losing part of any capital gains tax exemption.
Chapman says that after 90 percent of returns from investment properties and vacation homes are flawed, real estate assets will also come under scrutiny.
If you log in online through MyTax, the ATO says it usually processes refunds within 14 days. Credit: Getty Images
“The focus on investment property owners is likely to be particularly pronounced as rental losses are likely to be greater than usual this year due to the blow to rental incomes during the COVID-19 crisis,” he said.
“H&R Block’s most important tip is ensuring property owners keep proper records.
“The golden rule is: if you can’t substantiate it, you can’t claim it, so it’s essential to keep invoices, receipts, and bank statements for all property expenses, as well as proof that your property was available for rent, such as rental advertisements.”
On cryptocurrency, he said the ATO estimates that between 500,000 and 1 million people have engaged in crypto assets.
“More and more taxpayers are jumping on the bandwagon, and the ATO believes some of them are not declaring the profits – and in some cases the losses – they make on their investments,” he said.
“Remember that investing in cryptocurrencies can create a capital gains tax on profits. Traders can be taxed on their profits as business income.”
