As per the tax cuts introduced by Josh Frydenberg, the workers in Australia will get some money in their pockets from the beginning of this month. But there are some points to consider to get the money. Due to the cash shortage of cash or any other reason if you are fined with a late fine by your taxman, how can you save money.
The ATO will handout fines to the people who fail to lodge their tax returns in a given time. You can avoid this whole situation of getting a fine by lodging your tax return before 31 October.
Even if you can’t pay the tax in time but you have to lodge it before October 31. Those who lodge their tax return with a tax agent may get a later date to lodge it but they should be in contact with their tax agent to get their books now.
Avoiding fines is most important:
If you get late in lodging a tax return, you may be fined an amount of $1110. The date before which you have to do is 31 October. If you fail to lodge before this date, you will start getting a fine of up $220 each month. You will be fined by $220 every month for 5 months.
If you are unable to do it before the specified date, you should go to an accountant, but make sure that you are approaching him in time. Even if you are lodging your tax return with an accountant, this has to be done in time. Though there are some assistance measures available for those who are in a difficult situation due to COVID-19 but you should try to do it in time nonetheless.
Even if you are seeking help, you should lodge the tax return in time because the ATO needs to be aware of this situation so that they can introduce new plans of payment for your ease.
Things to care about while lodging your tax returns:
You should be ready with all the vital information before lodging your tax return. You should have all the information about your income in the same year.
A lot of information about you is pre-filled by the ATO but you should verify whether that information is true or not. Details like dividend income, interest, bank account details, medical insurance, information about your salaries, and wages will be pre-filled by the ATO.
Before making your final decision in the processing of lodging your tax return, you should have the following details: your tax file number, details of your bank account, your Medicare information, details of your spouse’s taxable income (if you are married), income sources.
The money you are going to get in your pocket:
The table given below will give you an idea about how much cashback is available for people having different levels of their incomes.
| Level of income | Expected cashback |
| People having an income of up to $80,000 | $2160 |
| Those who have an income of $60,000 | $2415 |
| Workers with an income of $150,000 | $2430 |
| Those with a salary of $40,000 | $1209 |
| People who earn less than $90,000 | $1080 |
One thing you should keep in mind is that you won’t get this cashback in one go. This cashback will be divided into two parts. You will get one part of the cashback this year while the other part will be paid in the tax return of the next year.