Don’t get spooked by looming tax deadline

AUSTRALIA’S largest accounting body is urging Australians not to let their tax returns become a financial fright fest, with the October 31 deadline looming.

CPA Australia says it is time to get your DIY tax affairs in order before the witching hour, or at least get on the books of a tax agent to secure an extension.

“Don’t let your tax return haunt you,” CPA Australia’s tax lead Jenny Wong said.

“We’re all busy and the deadline has crept up on us, but lodging your tax return on time is important. It’s your responsibility.

“Leaving it until the last minute comes with the risk that you cut corners, get things wrong and don’t submit your return accurately.”

She said a rushed return could mean a less favourable outcome, but missing the deadline could summon a scary penalty from the ATO.

“Rushing to lodge your tax return can also put you at greater risk of falling for scams as scammers target people with last-minute calls to action, or promises of substantial refunds.

“So, if you haven’t already done it, set aside some time over the next week to compile your evidence and get your return in on time. Or seek expert advice from a registered tax agent who can assist, especially if your finances are complicated.”

CPA Australia suggests these three tips for tax lodgement:

Copy and pasting is a grave mistake – If lodging yourself through myGov, check the pre-filled information carefully and do not copy and paste last year’s deductions. “Consider whether your circumstances have changed in the past 12 months and ensure all your income has been declared accurately,” Ms Wong said “You may also find that your work expense claims will be different to what you previously submitted, especially if you’ve changed jobs.”

Don’t rely on magic; get expert help – Anyone would benefit from the expert advice of a CPA, but those with complex finances should definitely seek professional help from a tax agent. This includes taxpayers who own rental properties, crypto assets or make extra income through side hustles. “A tax agent will help you navigate the complexities of your finances, make sure everything is accurate and give you more time to lodge,” Ms Wong said. “Just make sure you’re on their books by October 31,” and

Avoid the bite of tax scams – “Scammers are like vampires – they thrive in the shadows and feed on urgency,” Ms Wong said. “Be wary of unsolicited SMS messages and emails claiming to be from the ATO, including those with hyperlinks and urgent calls to action, such as claiming you have a substantial refund to secure. Also treat unsolicited phone calls with caution. If in doubt, hang up and call the ATO directly.”

Ms Wong recommended taxpayers register for myID to increase their online security and help reduce the risk of identify fraud.