ATO shares new plans to aid Aussies during tax return season
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Tax return season is here once again.
For many Australians, it's a yearly headache filled with paperwork, receipts, and constant worry if people missed something important.
To ease many Aussies' burden, the Australian Taxation Office (ATO) has been working on a plan that could make tax returns easier
The ATO revealed that it has been considering a significant overhaul of the way people do annual tax returns.
In previous tax seasons, Aussies had to do self-assessment for their tax returns.
This time, the ATO will be rolling out 'assisted assessment' for Aussies.
Through assisted assessment, the ATO would use various data collected from employers, banks, health insurers, and investment funds to pre-fill tax returns.
'More and more information like interest and dividend income, standardised investment trust data, salary, health insurance data, and information about contractors are all going directly into tax systems,' ATO's Second Commissioner Jeremy Hirschhorn explained.
'This trend will continue, and we'll see the classic concept of "self-assessment" being gradually replaced with "assisted assessment".'
On 1 July, taxpayers only need to review their information.
If tax affairs are straightforward and correct, Aussies have to click 'Confirm' and be done with their tax return within minutes.
Of course, not everyone's tax return is simple.
Those with investment properties, small businesses, or who claim a lot of deductions have to check their returns carefully and add any extra information.
However, for millions of Australians, this new system could take much of the stress out of tax time.
The ATO's goal for introducing assisted assessment was to make tax time more efficient, accurate, and transparent.
By relying on data from third parties, there's less room for error and less paperwork.
While this sounds like a dream come true, it's still important to check returns carefully.
Should there be any deductions, donations, or other income that is not reported automatically, taxpayers need to add this information manually.
On top of assisted assessment, the ATO also announced it would be closely scrutinising tax returns this year, especially work-related and working-from-home (WFH) claims.
So, what does this mean for seniors?
The assisted assessment could be a game-changer.
Many seniors have relatively simple tax affairs, especially retirees with income from superannuation, the Age Pension, or a few investments.
The new system could mean less paperwork, fewer mistakes, and a much quicker process.
The ATO has not given a firm date for when 'assisted assessment' will be rolled out, but the trend is clear: more automation and a more straightforward process for most taxpayers.
Have you had any good (or bad!) experiences with pre-filled tax returns in the past? Would you welcome a simpler, more automated tax return? Let us know your thoughts about this change in the comments section below!
For many Australians, it's a yearly headache filled with paperwork, receipts, and constant worry if people missed something important.
To ease many Aussies' burden, the Australian Taxation Office (ATO) has been working on a plan that could make tax returns easier
The ATO revealed that it has been considering a significant overhaul of the way people do annual tax returns.
In previous tax seasons, Aussies had to do self-assessment for their tax returns.
This time, the ATO will be rolling out 'assisted assessment' for Aussies.
Taxpayers had to manually key in their earnings and expenses for their tax returns. Image Credit: Pexels/Kindel Media
Through assisted assessment, the ATO would use various data collected from employers, banks, health insurers, and investment funds to pre-fill tax returns.
'More and more information like interest and dividend income, standardised investment trust data, salary, health insurance data, and information about contractors are all going directly into tax systems,' ATO's Second Commissioner Jeremy Hirschhorn explained.
'This trend will continue, and we'll see the classic concept of "self-assessment" being gradually replaced with "assisted assessment".'
On 1 July, taxpayers only need to review their information.
If tax affairs are straightforward and correct, Aussies have to click 'Confirm' and be done with their tax return within minutes.
Of course, not everyone's tax return is simple.
Those with investment properties, small businesses, or who claim a lot of deductions have to check their returns carefully and add any extra information.
However, for millions of Australians, this new system could take much of the stress out of tax time.
The ATO's goal for introducing assisted assessment was to make tax time more efficient, accurate, and transparent.
By relying on data from third parties, there's less room for error and less paperwork.
While this sounds like a dream come true, it's still important to check returns carefully.
Should there be any deductions, donations, or other income that is not reported automatically, taxpayers need to add this information manually.
On top of assisted assessment, the ATO also announced it would be closely scrutinising tax returns this year, especially work-related and working-from-home (WFH) claims.
So, what does this mean for seniors?
The assisted assessment could be a game-changer.
Many seniors have relatively simple tax affairs, especially retirees with income from superannuation, the Age Pension, or a few investments.
The new system could mean less paperwork, fewer mistakes, and a much quicker process.
The ATO has not given a firm date for when 'assisted assessment' will be rolled out, but the trend is clear: more automation and a more straightforward process for most taxpayers.
