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How much should you be paying for your tax return?

Written by Posted On Thursday, 05 April 2018 23:17

Tax time is never fun, but it can be much more enjoyable when you enlist a tax agent to optimise your deductions and allowances. Tax agents aren’t all created equally though, and some can charge huge premiums to complete your tax return. Here are the basic amounts you should be paying to have your tax return completed in time.

Free Options:

  1. 1.If you earn basic PAYG salary, do it yourself

Taxes don’t have to be confusing, especially with the online portal MyTax through the Australian Government’s MyGov platform. MyTax pre-fills information from your employer, bank and other government entities like Centrelink. All you have to do is double check it with your records and finish the online form. Make sure you request your summary of earnings from your employer so you can ensure these match the pre-filled amounts.

If you have a small business, own property or you’re a contractor, tax time can seem overwhelming and expensive, but you can use the prompts on MyTax to help you do your taxes yourself.

2. You may qualify for Free Tax Help through the government

If you earn less than $60,000 and you fulfil the requirements, you may be eligible for the Free Tax Help program. This program uses the help of ATO-trained volunteers to help you complete your taxes. Check out the ATO’s website to see if you qualify.

Cheap Options:

3. Online services with large accounting brands

Online services with firms such as H&R Block and Etax are a good option for those who are willing to do some of the work themselves. A general idea of cost after reviewing numerous brands is below:

-    PAYG Wages and simple deductions up to $300: Cost = approx. $20.

-    Shares or complex deductions: Cost = approx. $50

-    Multiple incomes and deductions: Cost = approx. $35

-    Investment property owners: Cost = approx. $65 and up

-    Sole traders: Cost = approx.$80 up to $250

-    Company returns around: Cost = approx. $1200 and up

These services include online forms you fill out and submit for one of their accountants to review. You may then need to make changes and communicate via email with the tax agent until the form is correct.

For a small addition charge, most good brands offer the opportunity for a phone conversation with one of their accountants. This is a great opportunity to prepare and ask questions about the forms, and any intricacies that have confused you.

You can also visit the shopfront of these brands and request a face-to-face meeting to discuss your return if needed.

Expensive Options:

4. Accountant by an accounting firm billing by the hour

If your tax return has overwhelmed you, and you have multiple income streams from rental homes, capital gains, small business assets, plus you’re part of a trust; you may prefer to seek out an accountant from a large firm. These professionals usually charge between $100-$250 per hour for billable work. If you haven’t prepared for tax time, this method can cost you huge amounts at tax time.

If an accounting firm is your chosen option, make the most of your investment in their time by requesting they explain your return to you, and maximise any deductions and offsets for you.

Tax time doesn’t have to cost you a lot of money, and the more you can do yourself the better. Choose the best option for you, but always try to understand as much about your return as possible.

Article provided by Liston Newton Advisory

 

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