The ATO has recently revealed that over a million Australians may be able to avoid filling in a tax return in 2014.
As many as 1.4 million Australians could be offered new ‘push’ returns from as early as next year. Lodging a tax return will still be necessary; however the process of filling the tax return in will be simplified.
This planned product, known as Streamlined Income Tax Return, will be available to Australians who have simple and straightforward tax affairs.
The ATO already collects the majority of information that is required to fill and lodge a tax return and plans to use this information to pre-fill a taxpayer’s tax return.
Streamlined Income Tax Return will allow taxpayers to log straight onto the ATO’s system. They will only need to prove their identity to be able to view a completely pre-filled tax return. This tax return will already have all the relevant information provided by third parties, such as banks, employers, Centrelink or Medicare.
This pre-filled return will also list estimates of items such as work-related deductions. This estimate will be calculated by rolling over information used in past tax returns.
However, it is important to note if taxpayers lodge an incorrect pre-filled return with the ATO they will be liable for the mistake and could incur a fine. Streamlined Income Tax Returns will only be suitable for those taxpayers with simple tax affairs. Taxpayers will still benefit from the services of a trusted tax agent who understand their individual circumstances.