Tax Returns to Go !!! (well not quite)

[coastymike]

Ahh reading todays newspaper you would get the impression that no longer will taxpayers be required to lodge income tax returns. Joy oh joy.

Well not quite. Sure if you want to accept the information that the ATO provides then you can simply tick the box and lodge the return. Great for the simple PAYG taxpayer.

But anyone with investment properties, shares, etc will still be required to lodge returns.

Sometimes I wish Dr Henry would just concern himself with his wombats.

PS the only good news was the possible lowering of the corporate tax rate to 25% and dividend imputation credits not being removed.

 

[marg4000]

I think it is a great idea.

Not that it will help many forumites, but for well over 50% of the population at least it will simplify things greatly, save a forest of trees and also processing costs.

And a bonus for all the part time and young people getting a $500 deduction they probably never had before!!
Marg

 

[coastymike]

Marg

I agree with that. If it reduces the load for the PAYG employee with simple affairs then that is a good thing. Maybe ITP and HR Block will close up shop as this is the majority of work they do.

Personally I'd like to see income taxes abolished and replaced with a higher GST rate but I can't see that happening for some time.

 

[marg4000]

Then again, it may free up the ATO to take a closer look at those who choose to lodge more complex returns!!
Marg

 

[sanjayag]

Can somebody post the link to this news please.

Regards
Sanjay

 

[marg4000]

Here's the link to the article in the Brisbane Courier Mail.

http://www.news.com.au/couriermail/story/0,23739,26239057-952,00.html

It was the lead story, so should be on any Australian news website.
Marg

 

[rugrat]

agree with marg. And if you do tick this box, will the ATO still have the power to go back and audit? That could negate the entire purpose of this.

 

[coastymike]

It is possible this could just end up like an episode of Yes Minister. "We will appoint someone to review the tax system", "Yes minister". "Once the review is complete we will then form 10 sub committees to review the proposals, seek broad community input, submit the proposals to business far and wide and then after 10 years everyone may have forgotten what it was about in the first place." "YES MINISTER"

 

[twobobsworth]

Would probably put a lot of shopping centre accountants out of work.

 

[softmonkey]

"Even though taxpayers would not have to make the annual trek to tax agents, the accounting industry is right behind the proposal."

I can't work this bit out. Why would they support it? Either the "ma & pa" returns are not a big part of your average accountant's income, or they figure it's going to be replaced by something more lucrative.

 

[bernardp]

In a decent accounting firm, the individual returns are a strain on resources. There are not many firms that produce a profit out of the smaller returns. The slightest issue with these smaller jobs, such as verification of the sale of shares (going back a number of years) blow out costs, hence they are difficult for accountants and tax agents to recover their time on. It is difficult to justify staff at a rate of 150-250 an hour producing these jobs at a profit, this is what ITP and H&R Block are for.

You will find most accountants would not be bothered by this at all, though I imagine if something goes wrong, the accountant will get the call to fix the problem.

Accountants - last person you'll pay, first person you ring when you have a problem.

Cheers

Bern

 

[lizzie]

very frustrating - the banner headlines were "sweeping tax reforms" or some such ... opened the article hoping to see some movement in getting rid of the hundreds of senseless taxes, amalgamating and streamlining the system.

instead it was just a logical step in regards to average paye employee's return.