The ATO has warned tax returns can be delayed if you don't disclose these COVID-19 payments. (Source: Getty) Show
The Australian Taxation Office (ATO) has reminded Aussies there are a number of COVID-related tax deductions and disclosures that need to be made this year. The ATO said it anticipated COVID-19 would continue to impact the income and deductions taxpayers would be reporting at tax time. “We know that many have faced significant challenges this year and the ATO is here to help you to get your tax right the first time,” assistant commissioner Tim Loh said.
This tax time, taxpayers need to be aware of changes in circumstances that may have affected what needs to be included as income or what can be claimed as a deduction. The most common changes for taxpayers include receiving an income support payment and changing what can be claimed as a work-related expense. “Tax time can be a smooth and easy experience if you know what income you must include and what COVID-19-related expenses you can claim in your tax return,” Loh said. Taxpayers and their registered tax agents affected by COVID-19 or financial hardship can access support at ato.gov.au/coronavirus. Here are the COVID-related changes you need to know about. COVID-19 work-related expensesFrom July 1, 2021, Aussies who paid for a COVID-19 test for work-related purposes (such as to determine if they could attend or remain at work) can claim a deduction for the test. Taxpayers must have a record to demonstrate they paid for the test. A receipt or invoice is usually best. If there isn’t a receipt or invoice, reasonable evidence is documentation that shows the cost of the test and the requirement to take it for work purposes. For example, a bank or credit card statement or evidence from an employer can be provided. Taxpayers cannot claim for a test that their employer provided or if their employer reimbursed them for the cost. Only tests that were required for work-related purposes can be claimed. Story continues “If you purchased a COVID-19 test for a trip with your mates, you can’t claim a deduction,” Loh said. Taxpayers may be able to claim a deduction for the cost of protective items that protect against risk of illness or injury while performing work duties. “If you’re spending your working day in close proximity to customers and you are at risk of contracting COVID-19, you may be able to claim a deduction for protective items such as gloves, face masks or sanitiser,” Loh said. Visit the ATO’s Protective items, equipment and products page for more information. JobSeeker paymentJobSeeker payments are taxable. This information will be automatically pre-filled in tax returns at the Government Allowances and Payments label once it’s ready. If taxpayers choose to lodge before this information is pre-filled, it will need to be added manually. Leaving out income will delay your tax return being processed. COVID-19 Disaster PaymentThe Australian Government’s COVID-19 Disaster Payment (delivered through Services Australia) is not taxable. It does not need to be included in tax returns. Pandemic Leave Disaster PaymentsThe Pandemic Leave Disaster Payment is taxable. This payment needs to be included in tax returns for the income year the amounts were received. Services Australia provided recipients with a letter each time they received a payment. Those who received the Pandemic Leave Disaster Payment will need to manually add up all the amounts received and include the total amount received in their tax return. This payment won’t be prefilled into the return. “While the information isn’t prefilled for you, not adding Pandemic Leave Disaster Payments to your tax return will delay the processing of your return and your potential refund,” Loh said. Taxpayers who chose to use a registered tax agent should remember to let their registered tax agent know they received the Pandemic Leave Disaster Payment. The ATO website has a quick guide to the tax treatment of the various COVID-19 payments. Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to the free Fully Briefed daily newsletter. How long does a Tax Return take in Australia? That question is a lot like asking “how long is a piece of string”, with the answer being dependent on a few factors. The time it takes to do your Tax Return, and how long it takes to get a refund back from the ATO depends on how you do it. At the short end, it can take under 5 minutes to complete your Tax Return. At the long end… hours! How do you speed it up, you ask, and what delays it?Great question, and luckily enough for you this entire article is dedicated to answering it. So, if you want to know how long it takes to do your Tax Return, how long it takes for the ATO to send your refund, or how to speed up the process, keep reading below. How long does it take to get taxes back?So… you’ve lodged your Tax Return & now you’re patiently waiting for the cash to hit your account. But where is it? One of the most common questions faced by our Numbers Geeks during tax time is ‘Where’s my refund?” So we thought it would be helpful to explain our refund process, as well as the estimated timeframe. One Click Life has created our online tax lodgement system to make things as simple as possible. During the lodgement process, we communicate directly with the Australian Taxation Office (ATO) while you wait, to get as much info for you as possible. But the next step takes a little bit longer. When you hit the ‘LODGE’ button on your online Tax Return, your lodgement is sent to the ATO for review. The average time for them to review each Aussie’s Tax Return & process a refund is approximately 12 – 14 business days. (that’s up to 2 weeks on average) Reasons why your tax refund may be delayedSome Tax Returns might take a bit longer than the usual for the ATO to process. Here are a couple of reasons why this might happen: If you lodge an Overdue Tax Return.The ATO tends to prioritise current year Tax Returns before processing any overdue lodgements from previous years – this may lead to a slower processing time. If you need to lodge an overdue Tax Return, check out our step-by-step guide If you lodge an Amended Tax Return.The ATO would take more time to process this, as they would have to bring up the original lodgement and compare the differences between the two before confirming the changes made are legitimate. Whilst One Click Life is the quickest, easiest & fuss-free way to lodge your online Tax Return, once you’ve hit ‘lodge’, some things are out of our hands & in the ATO’s. What to do if your tax refund is delayedIf your tax refund seems to be delayed, the first thing to do is not panic. Just sit tight and let’s wait at least 30 days first. This is because the ATO won’t take any questions about delays until at least 30 days after your first lodgement, so your refund has at least had a chance to come back to you. If you have waited for 30 days and you are yet to have an update, you can: Check the progress of your Tax Return with the ATO If you are worried you should get in contact with one of our helpers at One Click Life. We can point you in the right direction and help you track down your Tax Return. Why is it faster to lodge your Tax Return with OCL?The reason that it’s better to complete your Tax Return with a professional tax service like One Click Life is because it is quick, simple and easy with fewer mistakes. Customers boast that it takes as little as 5 minutes to lodge a Tax Return with One Click Life. Save time with pre-filled income details, boost your refund with suggested deductions, or link up your bank account to automatically claim your expenses. If you ever need help, there are qualified accountants readily available to answer your questions, assist with claiming deductions, and making sure you are compliant with the ATO. myGovOne Click LifeQuick and simple X✅Pre-fills your income details X✅Helps you claim deductionsX✅Checks your return for errorsX✅Live support from a qualified accountantX✅The best way Australians can stay updated on their Tax Return
One Click Life offers online Tax Returns at your fingertips in an easy-to-use platform run by industry professionals. Why is my ATO refund taking so long?Although most tax returns lodged online will be processed in 2 weeks, some tax returns may take longer to process. Examples are if: you attempt to lodge your tax return again after previously lodging. you have made an amendment before we finish processing your original tax return or any previous amendments.
Is there a delay with ATO tax return?The processing of your tax return has been delayed because we need to verify information you have provided. This can include checking it against data provided to us by employers, banks and other government agencies. You don't need to contact us. If we need more information from you, we'll contact you.
Why is my tax return taking still being processed?If your tax return status is "Still Being Processed" your tax return could be essentially on hold until the IRS corrects any issues and/or gets the additional information from you to continue processing your return.
How long are ATO refunds taking?We aim to process the majority of electronically lodged tax returns within 12 business days. If you can't lodge electronically, lodging a paper tax return can take up to 50 days for us to process manually.
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ATO delays in processing tax returns
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