Hi all,
I guess that most OzBargainers do their taxes by themselves, so how about we share some info on the topic?
My work mates have been talking about things that can be claimed - work related stuff like transport, clothes, etc. Any way to find how/what exactly can be claimed? Do I need the receipts (send or just keep them?) for everything?
Also, I made a donation this year - can the email confirmation be used as a proof?
Cheers,
+1 to getting a good accountant.
Don't use ITP, H&R Block etc either, they just contract in a whole heap of chumps that can barely do basic arithmetic, let alone comprehend complex tax law! They charge the same amount as a real accountant anyway, so you should just go straight to a true professional!
That's not true. I had an accounting degree and a gpa of 6.3. I can tell u the exam for practicing at h r block ain't easy. I know some of the employees are mums and dads and not professional, but they are capable of handling those straightforward profiles.
I know some of the employees are mums and dads and not professional…
Thanks for confirming my rationale Ahan!
Call me naive, but if I'm paying for the services of a professional I do kind of expect one, I'm just funny like that! :)
I know some of the employees are mums and dads and not professional
So you're saying people with kids can't be professional ???
I mean some are just part-time/casual accountants..
However, if the costs are the same, I recommend a proper accountant as well.. I am an insolvency accountant and received some training at hr block and I can say their system for personal tax return is pretty clever.
i quite often use HR Block for filing my returns..they are good..but they charge above average market fees..for this year they are charging $116 for individual returns..
any other accountants in Melbourne north?
If your deductions are over $300, you need to keep the receipts for five years. You don't need to send them unless they ask for it - which is unlikely.
If the email has the recipients ABN (must be a deductible gift recipient) and the donation amount imo it should suffice as a tax invoice.
All i can say is my accountant screwed us over and never accepted responsibility and i ended up having to pay ATO back. I told him i was in UNI and he claimed education rebate for me as a high school student. I did not know about this. My accountant only makes us sign the last page and then mails us the complete form after the tax return goes through after maybe a few weeks. I never picked up on this. Got a letter from ATO asking to explain this and there was no explanation. No responsibility falls on the accountant.
A good accountant asks you to read over what they are going to file before they file it because it always remains your responsibility. Ditch the bozo you had.
Done.
I'd be tempted to go a step further…if he's a CPA report him to the governing body: http://www.cpaaustralia.com.au/cps/rde/xchg/cpa-site/hs.xsl/…
It might not accomplish much for you, but your actions might save somebody else from his negligence…and it will really piss him off! ;)
Unfortunately can't do. Family of a friend.
A good accountant asks you to read over what they are going to file before they file it because it always remains your responsibility
lol, so what are you paying them for ???? just to fill out a form ???
For pointing out the deductions you may not know about. Especially if you are working for yourself. If your tax affairs are simple you can fill in the form yourself.
Obviously if the claims are false you should not sign. You didn't think they would go to jail for you did you? But if they misled you, just like an architect designed a faulty building, then it's professional negligence.
For pointing out the deductions you may not know about.
And when they get it wrong, why don't they take responsibility ?
See above.
Obviously if the claims are false you should not sign.
How do you know if you are allowed to claim or not? That's what you are paying them for…
You said it yourself…
"For pointing out the deductions you may not know about."
If you already know what you are allowed to claim, you wouldn't be using them in the first place.
When you hire an engineer to design you a thingamajig, do you understand all the decisions she makes? At some point you have to trust her professionalism. Are you going to do it all yourself? If you could then you wouldn't need to hire her. Same here, if you understand all the tax laws then you don't need an accountant. Perhaps you could even work as an accountant.
When my accountant pointed out that I could claim car expenses a particular way, I queried that. He said that was a normal thing to do. And it was fine.
You read the document just like you would anything you are asked to sign, to look out for gross errors. You will not get 100% protection, but better than signing blind.
The case that started this thread was the accountant claiming the OP as a high-school student when OP was a Uni student. And being a family friend he should have known better. That's negligence.
You will not get 100% protection, but better than signing blind.
Why should you be responsible for their mistakes, you are paying for their professional advice… If they get it wrong, they should be responsible…
They are, if they got it badly wrong. But you should at least read what you sign.
They are, if they got it badly wrong.
Doesn't seem that happened with 'rack', above…
That's because he won't pursue a family friend through the professional liability path.
IMO, if the registered Tax Agent fills out your form, ATO should ask them for an explanation, not you. After all, they prepared the application…
Well you should ask rack what happened. In my case, I think the ATO deals with my accountant first because they handle the arrears and refunds for me. Maybe that's the difference between a pro and a form-filling agency.
In my case guys this was a full CPA accountant and all. I could have pursued it but due to the relationship i didn't. I do believe accountants should be responsible but the $950 went in my pockets so I had to pay it back. I shouldn't have been made to pay the interest however is did bcos then a dispute would have to be filed. It was $65. I have done the right thing and changed accountants.
Did the ato go through every other year as well???
No bcos this was the only year this thing got claimed.
My Dad was screwed over totally by his accountant about 15 years ago.
don't know the ins and outs but dad had to pay the ATO ~$25,000 or something nuts. all related to his his small business
The accountant had been doing the books for 15 years so obviously there was some level of trust and a belief in professionalism.
the Accountant just shut up shop (pty ltd comp) so there was no recourse with any professional body or through litigation.
can anyone recommand a good accountant in melbourne?
how much does an average accountant charge for a simple tax return?
do they do a flat rate or is everything by hours?
I supply them with all the info, all they do is just punch in all the numbers with advise on any extra you can claim, they all seem to charge very high for a couple of hours of work max!
I live in WA, and over here the accountants charge almost double than what they would charge in the eastern states. so I use these guys from VIC to do my tax return each year, they charge about $57 for a basic tax return. A small accountancy firm though, but they're good :
http://nsassociates.com.au/images/PDF/Fifth%20Sample%20-%20P…
On this, if your accountant is in a different state you can claim part of a trip to see them.
Yeah I had an accountant in Brizzy (live on GC) and she always claimed the trip for me haha
if you want you can get in touch with my accountant . Direct message me and I will provide his details.
He has helped me and my friends save lot of tax money.
I will be claiming Hookers & Coke as an alternate medical therapy expense
When? After your stint on Tax Fraud, with the boys in gaol?
Before, otherwise it wouldnt be a deduction
Does the combination go well together? Perhaps add pilule bleue to the combo.
One way to keep the fees down is be organised and get all the tax related docs/tax invoices/bank statements/year to date rental statements/dividend statements/buy & sell shares contracts all ready. It is cheaper for you to photocopy the receipts/docs & give it to the accountant. You can also summarise the information on either excel or word documents.
Yea they don't like it if u just give em a bOx of receipts some will turn u away till u can sort them out
So wait a minute, they want you to do all the work, they fill out a form and then they want you to take responsibility for their decisions ???
What are you paying them for then?
My understanding is they know the tricks to maximize your return but you are responsible for keeping all the books and records.
Another key role of a good accountant is keeping taxpayers from knowingly or unwittingly committing tax fraud. :)
Yes, and that's related to another reason to using an accountant if your affairs are a bit non-standard: the ATO gives more credibility to the return if it's done by a pro than if you did you yourself.
If you use a budgeting program through the year that tracks every transaction in all accounts, it makes it a lot easier to do the return.
Quick Q — I study FT and work PT at a supermarket so my tax return should be fairly straightforward (I think?). What's the maximum $$$ one can claim (without receipts) for such things as work shoes, laundry costs, etc? Any other deductions I could make in regards to work or study?
I worked at supermarket as well. You can't claim work shoes if it's normal shoes, unless you work at the sea food counter. For laundry you can do a diary to record how many times you wash the clothes during the year. I think it is 50 cents each time? For any expense less than $10 dollars you can use diary.
You can also claim travel between work and school, but not other travelling expenses.
To any accountant here: Is the cost of getting Australian Residence/Work Visa tax deductible?
Nope. I am not a tax accountant but technically, it's incurred for the purpose of starting to earn income and not is not deductible. Same as you do a chef course and start working as a chef. The cost of the course is not deductible.
Following that logic, initial membership of professional registering bodies should also not be deductible. Is that the case?
Practical example: If you are practicing as an accountant and then want to become a member of CPA, the cost involved is deductible.
However, if you think accountants make pretty good money. In order to become an accountant, you join the association and enroll courses given by the association, hoping find an accounting job in the future. In this case, the joining fee and tuition fee will not be deductible.
Unfortunately, your practical example isn't quite what I was asking. You've described voluntary membership of a professional association, not initial membership of a registering body.
Say you've just graduated as anything…physiotherapist for instance, before you can commence practicing you need to register with the governing body as a practicing professional; is that first year of membership tax deductible?
It's incurred for the purpose of starting to earn income and hence is not deductible.
Cheers dude, interesting to know.
Thanks for the great explanation!
Hi,
Is there any tax offset, if you have a child. If yes, how to use it. I dont see anything specific in e-tax.
If you earn a substantial amount of money, hire a good accountant to do your tax return. They know about the deductions, and you can claim the cost of the accountant the next FY.
The charity (if approved) should have sent you an official tax deduction receipt. Electronic is fine, as long as it's official.