Now that the 2021-2022 financial year has come to a close, it’s time to focus on preparing and lodging 2022 tax returns. Before you lodge your 2022 tax return, we have a few important things to consider, including information about when is the best time to lodge your return. We will also discuss how the ATO have ramped up their debt collection process post the COVID-19 pandemic, as we’ve previously mentioned in our blog titled: ‘Tax Advice for corporate taxpayers & taxpayers with unpaid debts’.
Although 2022 tax returns are not due until 2023, there are quite a few things you will need to attend to sooner than later, especially if you’re a business owner or director of a trust.
Businesses will need to:
- Review and finalise Single Touch Payroll (STPs) by 14th July 2022.
- Correct any superannuation guarantee errors by lodging and paying the Superannuation Guarantee Charge Statement.
- Document any trust resolutions and dividend declarations as soon as possible.
- Lodge Taxable Payments Annual Reports by 29 August 2022.
- Ensure expense claims are purely business related and not personal.
- Talk to your Accountant about what other priorities your business may need to comply with as soon as possible.
For individuals, you will need to:
- Review your records and check your claims have sufficient connections to your work and that you haven’t been reimbursed for these expenses.
- Consider any other forms of income you may need to pay tax on, including cryptocurrency, the sale of goods and services online, and/or trading shares through apps.
- Ensure kilometers claimed are work-related only.
- Consider waiting until mid-August before lodging your return as some of the ATO’s low- and middle-income tax offset pre-fill details may not be available until then and early lodgement may incur additional risks, amendments and penalties.
In addition to these considerations at tax time, we also need to warn you regarding the ATO’s current debt collection process and how, post COVID-19, the ATO are now contacting taxpayers and their agents to address unpaid liabilities. If you, or your business, have any outstanding debts to the ATO it’s time to contact the ATO, or your Accountant, now about arranging a workable payment plan. Unfortunately, any outstanding debts to the ATO will incur some form of general interest charges and/or penalty fees so getting onto these debts as soon as possible is crucial. The ATO have stated that any outstanding debts, where the taxpayers have not made arrangements to pay, may result in Director Penalty Notices or disclosures to credit bureaus. If for whatever reason you are still struggling to loge your 2020-2021 tax return, the ATO have advised to contact them immediately to discuss your situation and any options you may have.
In summary, should you require any assistance this tax time, please contact Lana and her team at Matovic Business Accountants to discuss your options today! Email us at info@matovicaccounting.com.au or call (07) 3557 5721.
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