The benefits of having your tax return filed early

Receive your tax refund earlier

Once your tax return is prepared and lodged, if the tax payable is less than PAYG withheld for the year, you will receive a refund.

You may also have experienced disruption to your business due to the COVID-19 pandemic and may find yourself in loss position, which could generate a tax refund

Therefore, the sooner your tax return is filed, the sooner any refund you may be due can be processed.

What better way to boost your cash resources than by claiming a refund from the ATO!

Calculate your tax bill and plan your cash flow

Many businesses are currently trying to forecast their cash needs in the short/medium term and one of the biggest expenses the self-employed will have before the end of the tax year will be their tax bill.

Knowing exactly how much your tax bill will be will help you to plan effectively for how you will be able to pay it, be that through bank funding or by preparing to engage with the ATO and asking for a phased payment arrangement when the liability falls due.

Remember, just because you file your return early does not mean that you must pay the liability immediately. That only becomes due for payment on 15 May next year for most taxpayers (it maybe earlier depending on individual circumstances)

Give yourself more time to focus on your business

If business is quieter now, your tax return is a job that you could get done and out of the way. When business is back to normal, then you will have more time to focus on getting your business back on track rather than on your tax returns.

Allow plenty of time to prepare

The more time you give yourself to gather all the information you need to prepare your tax return, the better. This should reduce the risk of errors and mistakes being made, which may not only be costly, but could also mean you end up paying more tax than you need to and having to re-submit your tax return.

How TaxAssist Accountants can help

We can help you complete your tax return early, so you know how much tax needs to be paid and by when.

If you are due a tax refund, it makes great sense to receive this as soon as possible. We work with many self-employed individuals and business owners and we can help you too.

If you need help with your tax and accounting, call us today on 1300 513332 or drop us a line using our online enquiry form. We also offer a free initial consultation.

Date published 28 Apr 2021

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.