Tax time frequently asked questions

Lodging your 2009 income tax return

Tax time is a busy time of year for everyone. There is currently a high demand on our phones, so to save you time we’ve prepared answers to some of the frequently asked questions on the lodgment of tax returns.

If your questions are not covered here, phone us on 13 28 61 about your personal tax matters or on 13 28 66 for business tax matters.

General lodgement

Do you need to lodge an income tax return for 2009?

Whether or not you need to lodge an income tax return will depend on the amount and type of income you have received in the previous income year, if any tax was withheld and your personal circumstances.

To find out if you need to lodge a tax return, enter your details into the self-help tool Do I need to lodge a tax return?

What methods are available for you to lodge your tax return?

There are a number of options available to you to lodge your tax return, you can lodge:

online using e-tax
by phone
using a registered tax agent, or
using TaxPack.

The processing time of your tax return will vary, depending on which method of lodgment you use. Generally, the fastest way to receive your tax refund is by using e-tax to lodge your return and entering your bank account details.

For more information on lodgment options, refer to How do I lodge my tax return?

When do you have to lodge your 2009 tax return?

If you prepare and lodge your own tax return, the lodgment deadline is Friday 31 October 2009.

If you lodge through a registered tax agent, they have their own lodgment deadlines.

However, if you are using a tax agent for the first time, or you are going to use a different tax agent this year, you must contact them by Friday 31 October 2009.

What penalties will you be charged if you don’t lodge your tax return on time?

Penalties are imposed on a case–by-case basis and depend on your lodgment history, amount of tax payable and when your tax return is lodged. We cannot tell you whether a penalty will be applied, or the amount, before you lodge your tax return.

However, our policy is not to apply a penalty if your tax return:

is lodged voluntarily, and
does not result in any tax payable.

If your tax return results in you having to pay money to the Tax Office and you don't pay on time, we may impose general interest charges starting from the date the payment was due.

If you disagree with the imposition of penalties or general interest charge, refer to Objections, amendments and reviews essentials.

If you change your name and/or address, do you need to update your contact details before lodging your tax return?

You don't have to update your contact details before you lodge your tax return.

Simply complete your tax return using the current name and address, and ensure that you indicate on the return that your contact details have changed from last year.

If you wish to update your contact details after you have lodged your tax return, you can notify us in writing or by phone. For more information, see Updating your name and address

How do you order TaxPack 2009, or other publications?

You can order any Tax Office publication online. They will be sent to your address within five to seven working days.

To access our online publications ordering system, see Order Tax Office products online.

Many Tax Office publications and forms can be downloaded from this website. For more information, see Booklets and publications.

Alternatively you can order publications anytime, 24 hours a day, by phoning our self-help line on 1300 720 092 and stating the title of the publication you require and the address you would like it posted to.

How do you make a Family Tax Benefit claim?

As of 1 July 2009, Family Tax Benefit is no longer claimed through the Tax Office. All claims and payments will be made from the Family Assistance Office.

For more information on the Family Tax Benefit, including eligibility, visit the Family Assistance Office website at www.familyassist.gov.au

E-tax lodgement

Where can you find your sequence number and other details so you can use e-tax?

The details you require to lodge online using e-tax can be found on any of your previous notices of assessment that you have received within the last five years. These notices are sent to you each year, after you lodge an income tax return, to advise you of the outcome of your assessment.

You will need all of the following details from your notice of assessment to successfully lodge your tax return using e-tax:

your full name – exactly as it appears on your notice, including any middle names and the title (for example, Mr, Mrs or Ms)
your given name – exactly as it appears on your notice
date of issue – this can be found on the top right hand side of your notice
sequence number – this can be found on the top right hand side of your notice, below the date of issue.

For more information on the details required to lodge your tax return online using e-tax, see e-tax essentials.

How long will e-tax be available?

You can lodge your 2009 tax return online using e-tax until the end of February 2010. However, if you lodge your tax return after the due date for lodgment, penalties and the general interest charge may be applied. The due date for lodgment is normally 31 October 2009.

Post-lodgement

You have lodged your tax return, but where’s your refund?

To check on the progress of your tax return, you can phone our automated phone service on 13 28 65 anytime, 24 hours a day. You will need to provide your tax file number.

We will process your tax returns and baby bonus claims within our service timeframes. When enquiring about your refund or baby bonus claim, ensure you have waited the full processing period before you call. We are unable to assist callers who enquire before the processing period has passed.

The service timeframe that applies to you will depend on the method you have chosen to lodge your tax return. Our standard processing time is:

two weeks if you lodged our tax return online using e-tax, and
six weeks if you posted your tax return to the Tax Office.

If you are lodging your return using a tax agent, the service standard processing time is generally two weeks, provided your tax agent has lodged electronically. If your tax agent posts your tax return to the Tax Office, the service standard will be six weeks.

All service timeframes start from when the Tax Office receives your tax return

If you don’t understand your notice of assessment, can you get someone to explain it to you?

After we have processed your tax return, we will issue you with a notice of assessment. This will tell you if you are entitled to a refund, or if you have a tax debt to pay.

To understand how your refund or tax liability is calculated, follow these steps:

work out if your taxable income is correct (the assessable income you earned minus deductions)
add up the amount of tax payable on that amount of income (tax on taxable income, plus Medicare levy and Higher Education Loan Programme/Student Financial Supplement Scheme repayments), and
deduct any offsets from your tax payable, and then the tax already paid (amounts withheld by your employer and paid on income activity statements).
If there is an amount left over, this is refunded to you.
If there is an amount outstanding, this is your tax debt amount payable.

The Comprehensive tax calculator may be able to help you calculate your tax liability.

What if your notice of assessment doesn’t add up?

If your notice of assessment doesn't add up, you will need to check the amounts you have put on your copy of your tax return. If an amount has been entered incorrectly on your tax return, this will affect the outcome of your assessment. To change any details you put on your original tax return, refer to Amendment requests.

How can you correct a mistake you made on your tax return?

If you have made a mistake on your tax return, you need to submit a written request to the Tax Office to amend the relevant tax return as soon as possible. There is a time limit in which you can request changes to a tax return you have already submitted and by law you must ensure you advise us of any error or omissions as soon as possible.

For more information about how to lodge a written request, refer to Amendment requests.

You cannot submit amendments over the phone or by e-tax. They must be submitted in writing to the Tax Office or through a registered tax agent.

Payment summaries

What do you do if you are missing one of your payment summaries?

You are expected to make all reasonable attempts to contact your employer to get a copy of your payment summary. If you can’t get a payment summary, you can ask your employer to sign a letter stating the income and tax withheld throughout the income year.

If all attempts to get your payment summary are unsuccessful, you can complete a statutory declaration (PDF, 110KB) and use this in place of the missing payment summary. To complete this declaration, you may need to refer to your bank records or payslips to estimate your income and tax withheld.

The Gross pay estimator may help you calculate your income for the financial year

What if your payment summary is incorrect?

You should contact your payer and ask them for an amending letter on business letterhead that shows the correct details. You should keep this letter with your original payment summary.

If your payer is unwilling or unable to provide you with this amending letter, you should complete a general statutory declaration (available from most Post Offices and the Attorney General's website at www.ag.gov.au). You should keep this with your original payment summary.

What can you do if you lose your payment summary?

You will need to request from your employer a signed copy of the payment summary. This copy needs to be certified by the employer as 'true and correct'. If the employer no longer has a copy of the payment summary, you can request the details that were contained in the summary be provided to you on business letterhead.

General tax return

How do you claim medical expenses?

You can claim the net medical expenses you have paid less any refunds you got, or could get, from Medicare or a private health insurer.

You can claim a tax offset of 20% – 20 cents in the dollar – of your net medical expenses over $1,500. There is no upper limit on the amount you can claim. Refer to Net medical expenses tax offset for more information on the net medical expense offset.

Your employer has been withholding extra amounts of tax from your pay – why hasn’t the balance of your Higher Education Loan Programme (HELP) account been reduced?

Your employer will withhold additional amounts from your pay throughout the year to cover your anticipated compulsory HELP repayment.

These amounts withheld are not credited to your HELP account during the income year but will be included in the PAYG withholding credits label on your notice of assessment. Your final tax liability and compulsory HELP repayment are calculated at the end of the income year after you submit your income tax return.

At that time, any amount your employer has deducted from your pay will be used to offset the compulsory HELP repayment has been calculated. Any extra amounts that you may have overpaid will be refunded to you at that time. Similarly, if you have not paid enough tax through employer deductions, you may receive a bill. The compulsory repayment shown on your notice of assessment is credited to your HELP account on the date the notice of assessment is issued.

For more information, see Repaying your HELP debt

If you have incurred out-of-pocket child care expenses throughout 2009, how will you claim your Child Care Tax Rebate in 2009?

Since 1 July 2007, the Child Care Tax Rebate has not been paid through the tax system. It is now made as a direct payment to families from the Family Assistance Office at the end of the financial year in which the child care costs were paid.

For more information on the Child Care Tax Rebate, including eligibility, visit the Family Assistance Office website at www.familyassist.gov.au

What is the cents per kilometre method?

The cents per kilometre method is one of four methods set out in the law for calculating deductions for car expenses. It gives taxpayers a simple means to calculate their deduction.

You can use this method to claim up to a maximum of 5,000 business kilometres per car even if you have travelled more than 5,000 business kilometres. For example, if you travelled 5,085 business kilometres, you can only claim the cost of travelling 5,000 kilometres with this method. You cannot claim for the extra 85 kilometres.

You don't need written evidence but you may need to be able to show how you worked out your business kilometres.

The cents per kilometre rate is determined each year by the Department of Education, Employment and Workplace Relations (DEEWR) based on movements in the consumer price index (CPI) for private motoring. The new rates are generally published in June to allow taxpayers to make an informed decision about whether they wish to use the cents per kilometre method or one of the other methods set out in the law to calculate their deductions for car expenses.

The other methods taxpayers can use to calculate their deductions for car expenses are:

Activity statement lodgment

How do you lodge your activity statement?

You have three options to lodge your activity statement.

By mail – you must return your completed activity statement and/or payment in the pre-addressed envelope that you received with your activity statement. The mailing address is also pre-printed on the activity statement and the payment advice is at the bottom of the activity statement.
Online, using the Tax Office Business Portal – it’s a fast, convenient and secure way to lodge your activity statement.
If you are lodging a nil activity statement ( all reportable amounts are $0), you can lodge this over our automated telephone service on 13 72 26

For more information, refer to lodging your activity statement online.

How do you lodge a nil activity statement?

The Tax Office has an automated self-help service that will enable you to lodge your nil activity statement quickly over the phone. The Tax Office business direct service is available 24 hours a day, seven days a week on 13 72 26.

This service is available for you to lodge current and outstanding statements, including up to three nil statements, with one phone call.

To use this service, you must have:

your tax file number or Australian business number, and
the document identification number (DIN) for the statement(s) to be lodged.

This facility is not available if you want to vary your instalment amount to nil or if you report goods and services tax (GST) by instalments and have a nil obligation to report on your annual GST return.

For more information on activity statements, see Activity statements.

How do you vary your activity statement?

The amounts shown on your activity statement are based on your most recently lodged tax return with the Tax Office. As such, they may not reflect your current circumstances. If this is the case you can vary your activity statement to reflect your current circumstances.

For more information, see PAYG instalments – how to complete your activity statement.

Last Modified: Wednesday, 29 July 2009

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If you feel that our advice and guidance does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.

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