It is an important feature of the modern world that individuals and organizations, in every financial year, are to submit income tax return for the year. The income tax, in Australia like all other countries, is fixed on the basis of the financial earning of the specific year. Income tax, for any business organization or for any company, is fixed on the basis of its annual net income. On the other hand, individuals are to pay their income tax on the basis of their entire earning. Tax is either progressive or regressive and there are various tax systems in Australia.
Materials showing income of an organization or individual in a year (financial year in this case) are collected, and those of different companies or individuals are placed in their respective income tax files. This is a specialized job which the people in general cannot execute. They are to depend on the experts in the field of the tax services. Professionals of the tax department help the people whose income tax files are to be made ready. There are complexities in the job of income tax return submission. Income tax consultants in Australia are apt in this service.
The Australian people, in every year, are seen to be busy with the job of income tax return just before the announced last date for income tax return submission, although this involves jobs of the whole year. Companies or individuals should carefully preserve papers containing transactions of receipts and payments of the particular year. Books relating to all fiscal transactions must hold day-to-day entries of the financial activities. Entries must include donations. Professionals who prepare the income tax files are put into trouble if the papers are not properly preserved. The income tax experts can reach to the right conclusion regarding the amount of the payable tax and probable quantity of tax savings, when they find that the documents have been neatly preserved.
Tax credits are very important. The Australian people can receive educational tax credit if their sons and daughters are students of any institute or university. This helps in reduction of the income tax. Marital status of the people influences the amount of income tax. Joint submission of the income tax returns by the husband and wife can save a lot.
Chartered accountants are the competent authority to help in submission of one’s income tax return. They can study everything that can shape the final figure of the income tax. They take the following into consideration:
Annual income
Donations for charity
Corporate tax
Standardized deductions
and many more items.