It’s nearly the New Financial Year, if you consider filing a tax return a financial chore at the start of every financial year, it’s time to switch your thinking. Rather than a quick form fill-out and submission, take your time to ensure you minimise your tax liability and minimise the potential costs you owe.
Did you know that you no longer need to wait for your income or private health insurance statements before you can organise your tax return? Continue reading to find out why.
Your Income Statement
Your income statement is the equivalent of a payment summary (which some people still call a group certificate). If your employer reports through Single Touch Payroll (STP) you may not receive a payment summary from them. Instead, your payment summary information will be available in ATO online services through myGov.
Your income statement will show:
- your year-to-date salary and wages
- the tax that has been withheld
- the super amounts your employer has to pay for you.
If you use a registered tax agent, they will have access to your income statement so they can complete your tax return.
Not all employers report through STP. You will continue to get a payment summary from any employer who has not yet started STP reporting.
Your Private Health Insurance Statement
Your private health insurance statement gives you information about your private health insurance premiums and private patient hospital cover.
The law has recently changed in regards to the way health insurers give you information about your private health insurance premiums. Previously, your health insurer was required to send a private health insurance statement to each adult covered by the policy by 15 July each year. It is now optional for them to send you this information. The health insurer may send the statement by mail, email, or as a link to an online version.
If you lodge your tax return online using myTax or lodge using a registered tax agent, your health insurance details should be pre-filled. If your health insurance details are not pre-filled or you lodge a paper tax return, you will need to contact your health insurer in order to get a private health insurance statement so that you can complete your tax return. It will also help you complete the Medicare levy surcharge related items on your tax return.
If you are an adult covered by a private health insurance policy when the premiums were paid, you will be income tested on your share of the policy, regardless of:
- who paid the premiums
- how many other people are covered on your policy.
If you share your policy with another adult, you can each request your own statement showing equal shares of the premium.
For more information click here.
A Crest Accountants, we can:
- Assist with minimising your tax liability,
- Help you protect your assets, and
- Motivate you to achieve savings goals.
Need help with financial accounting?
Contact Crest Accountants today to step into the new financial year with the best financial footing.
Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for professional advice.