Tax accountant Michelle Labahn has good news for parents and procrastinators!By Kath Gannaway
PARENTS, listen up! A new tax rebate of 50 per cent for out of pocket educational expenses for both primary and secondary students was introduced from 1 July.
The Australian Taxation Office (ATO) will allow a tax rebate of up to $375 for primary students and $750 for secondary students for expenses incurred such as text books, computers, internet and educational software, so save those receipts.
Currently the government is still matching $1.50 for every dollar of after superannuation tax contributions capped at $1000 per person.
That means up to $1500 tax free into your fund if you meet the eligibility criteria. Give Michelle Labahn and Associates in Healesville a call to see if you qualify before it’s too late.
And, good news for tax procrastinators!
So you haven’t put in a tax return for a year or two … maybe even four or five!
You’re probably the only person in Australia who hasn’t, and after all the tax man is pretty busy. He’ll probably never even notice!
You don’t even want to think about the massive interest and penalties?
So, the best thing you can do is keep a low profile, and put it off for another year!
Right?
Wrong!
Very wrong, in fact, according to Healesville tax accountant, Michelle Labahn.
As the principal of Michelle Labahn and Associates, Ms Labahn is a Certified Practicing Accountant (CPA), and a member of the National Tax and Accountants Association (NTAA).
She has good news, and good advice for tax procrastinators.
First: You are not alone. “It happens to more people than you think,” she said.
Second: It’s never too late. Even with missing group certificates and other documents, it can be sorted – “quickly, easily and painlessly.”
Third: Penalties, if any, are usually minimal.
“High penalties and interest are a bit of a myth. They usually work out to be very minimal and, if the person is a wage and salary earner, often there is a refund,” Ms Labahn said. “If paperwork is incomplete you can apply for a copy of your group certificate from previous employers, or from Centrelink, or you can do a statutory declaration,” she explained.
For parents on certain Centrelink payments, however, it is critical that a tax return is done every year.
Ms Labahn said “As soon as someone goes two years (without putting in a return) they are in trouble. If they are on a child payment from Centrelink they will be asked to repay any money they have received. They may also miss out on receiving extra payments.”
Importantly, catching up on tax returns, before the ATO catches up with you, brings enormous peace of mind, according to Ms Labahn.
She said most people worry about their tax situation and believe they are headed for big trouble.
“It never works out like that,” she said.
None-the-less, the head-in-the-sand approach is not a strategy. The taxman is busy … but not that busy!
