So the Libs intend to deliver the promised "push tax returns" in the budget. Claiming to save 1.4m aussie a costly / complex and time consuming chore. Thats good...For a simple and basic employee with PAYG income and little to no deductions. Not my sort of client but ITP's, H&R etc could see this as a drain.
Q : So how do they claim the tax agent fee for last years return ?? Likely a basic standard deduction. Problem in the past was deciding on a number. $300 may be too low. (Avg work dedn is $226). $500 OK except if worker buys a few safety items, laundry etc it probably low. $1,000 ?? Too generous. Each $100 of deduction given loses $30 of tax.
Obviously wont affect a significant number - Shareholders, self employed, property investors, any allowances such as travel, vehicle etc. Income protection, margin lending, super contributions, anyone with capital gains. larger deductions etc.
Property investors !! "Treasury is considering using third-party information from real estate agents and stockbrokers to track taxpayers' capital gains, with the long-term goal of offering "no touch" tax returns". ABSOLUTE RUBBISH is my view. Impossible. Few agents deal with the whole of a taxpayer IP. Many investors dont use agents. ie Land tax paid by owner, some pay own costs, some pay part. Interest ?? Loan refinance? Proportioning costs ? Cost base adjustments from QS ?? Depreciation, asset write offs etc I would love to read the Treasury paper that says "we cant do this". Share cap gains are generally not correct in broker records either. eg : Aunt Ethyl dies and leaves shares to her two daughters. Some pre-CGT some post. They dont know this.
Who employs these idiots in Govt ?
A few risks with this push model based on oseas experience :
- Loss of historical CGT info. ie cost base of those shares that dont pay divs ?
- Loss or forgetting c/fwd cap losses. Years later you cant front a tax agent and ask them to "find out"..No process exists.
- Blind faith in ATO appearing to offer a legit refund when a higher refund may be entitled if deductions were discussed and explored.
Q : So how do they claim the tax agent fee for last years return ?? Likely a basic standard deduction. Problem in the past was deciding on a number. $300 may be too low. (Avg work dedn is $226). $500 OK except if worker buys a few safety items, laundry etc it probably low. $1,000 ?? Too generous. Each $100 of deduction given loses $30 of tax.
Obviously wont affect a significant number - Shareholders, self employed, property investors, any allowances such as travel, vehicle etc. Income protection, margin lending, super contributions, anyone with capital gains. larger deductions etc.
Property investors !! "Treasury is considering using third-party information from real estate agents and stockbrokers to track taxpayers' capital gains, with the long-term goal of offering "no touch" tax returns". ABSOLUTE RUBBISH is my view. Impossible. Few agents deal with the whole of a taxpayer IP. Many investors dont use agents. ie Land tax paid by owner, some pay own costs, some pay part. Interest ?? Loan refinance? Proportioning costs ? Cost base adjustments from QS ?? Depreciation, asset write offs etc I would love to read the Treasury paper that says "we cant do this". Share cap gains are generally not correct in broker records either. eg : Aunt Ethyl dies and leaves shares to her two daughters. Some pre-CGT some post. They dont know this.
Who employs these idiots in Govt ?
A few risks with this push model based on oseas experience :
- Loss of historical CGT info. ie cost base of those shares that dont pay divs ?
- Loss or forgetting c/fwd cap losses. Years later you cant front a tax agent and ask them to "find out"..No process exists.
- Blind faith in ATO appearing to offer a legit refund when a higher refund may be entitled if deductions were discussed and explored.
