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Canberra Times
3 hours ago
- Business
- Canberra Times
Five most common tax mistakes Aussies make that could cost you
Five most common tax mistakes Aussies make that could cost you Picture Shutterstock This is branded content for H&R Block Tax Accountants. Over the coming months, 13 million Australians will lodge their annual tax returns, with 84 per cent expecting a refund. The average size of refunds last year reached more than $3,000. With the potential for such a handy windfall, why would you risk leaving anything behind for the tax man, or having your refund delayed because you made an error or overlooked details when filling in your return? Tax expert Mark Chapman from Australia's largest tax agency, H&R Block Tax Accountants, says there are some common tax return traps people tend to fall into. Here are his five tips for avoiding the pitfalls, getting your tax return right, and that refund in your pocket. 1. Claim what you're entitled to You're entitled to claim a deduction for any expense you incurred in earning your income. "So, if you have incurred a work-related expense, and you have the paperwork to prove it, don't hesitate to claim it," said Mr Chapman. A good tax accountant, like H&R Block, will be able to tell you exactly what you can and can't claim, minimising the chances of an audit at a later date, but consider claiming these: Working from home expenses. You should claim the work-related costs of your home running costs, like gas, electricity, mobile phone, internet and so on. There are two methods for claiming; your tax accountant can help you find the best one. Clothing and uniforms. You can claim the cost of buying and cleaning occupation-specific clothing, such as work uniforms. Car expenses . You can claim the cost of all work-related journeys (excluding home-to-work expenses). Either claim actual costs (which will require a logbook to have been kept, plus copies of receipts/invoices incurred) or claim the ATO's fixed rate of 88 cents per kilometre for each work-related kilometre covered (you need to keep a diary of all your work-relatedjourneys). Handbags. If you've bought a handbag that you use for work-related purposes, such as carrying documents and files, you can score a tax deduction for the work-related proportion of the cost. 2. But don't embellish deductions Exaggerating the facts might be okay when you're telling a fishing story, but not when it comes to tax returns. "You can only claim what you've spent," said Mr Chapman, "so don't inflate deductions in order to get a bigger refund. And only claim for costs you can prove you spent, by producing an invoice, receipt or bank statement, for instance." H&R Block's Mark Chapman. Picture supplied Self-lodgers using the ATO's myTax program are monitored as they prepare their return by the ATO's computer systems to ensure they're not over-claiming. The ATO's computer systems compare your claims to those of others like you. If your claim rings alarm bells, myTax will give you a stern warning inviting you to rethink that deduction. Ignore that message, and you could be headed for an audit. "If your deduction claims are found to be incorrect, you'll be required to repay the tax avoided, plus pay interest," said Mr Chapman. "If the ATO believes you've acted carelessly, a penalty between 25 per cent and 95 per cent of the tax avoided may also be charged." 3. Get some help There's a reason 65 per cent of Australians use a tax agent to prepare their tax return; tax is complicated. Get your tax return wrong and the comeback is on you, either with a lower refund or ATO penalties. "Most people find it far less stressful to simply pass on all their information to a tax agent and leave it to the agent to complete their return, safe in the knowledge that the return will be accurate and complete," said Mr Chapman. "Experienced agents, like those at H&R Block, are good at sniffing out those obscure tax deductions you didn't know you could claim, so they can often pay for themselves several times over. Best of all, the tax agent's fee is also tax-deductible." 4. Don't rely on pre-filled data from the ATO These days, you can pre-fill lots of your income information straight from the ATO's systems with the push of a button. But you still need to take care to check it. "Don't assume income data is correct or complete," said Mr Chapman. "Particularly if you're lodging early, always use your own information as the key source data. "Some people assume that it must be right because the data comes from the ATO. That's a dangerous assumption, especially in July and early August. If you omit income and get questioned by the ATO, the legal burden will be on you, even though you've taken the information straight from the ATO's pre-filled data. 5. Don't forget the basics Many tax returns get held up by the ATO because taxpayers have made basic mistakes like not updating their name or address, or omitting bank details. "If you lodge under different address details or name, the ATO won't be able to match it with your Tax File Number and delays will ensue," Mr Chapman said. "Tell the ATO about the changes before you lodge your return. "The correct bank details are also vital - the ATO doesn't send out refund cheques these days, so no bank details, no refund." Also, take care with spelling. If you've added an extra letter to a key field, such as your name, that slip of the keyboard could consign your return to a black hole whilst the ATO tries to match your details manually. To maximise your tax refund book an appointment, visit
Yahoo
7 days ago
- Business
- Yahoo
The Top 5 Analyst Questions From H&R Block's Q1 Earnings Call
H&R Block's first quarter results were met with a negative market reaction, despite the company surpassing Wall Street's revenue and non-GAAP profit expectations. Management attributed revenue growth to higher net average charge (NAC) in the U.S. and increased company-owned Assisted return volumes, while acknowledging challenges in international operations and a highly competitive do-it-yourself (DIY) segment. CEO Jeffrey Jones emphasized the impact of a late-season client surge and a continued industry shift towards Assisted tax preparation, highlighting, 'We experienced record-high volumes in our tax offices in the final two days of the season compared to recent history.' Is now the time to buy HRB? Find out in our full research report (it's free). Revenue: $2.28 billion vs analyst estimates of $2.25 billion (4.2% year-on-year growth, 1.3% beat) Adjusted EPS: $5.38 vs analyst estimates of $5.17 (4.1% beat) Adjusted EBITDA: $1.01 billion vs analyst estimates of $984.2 million (44.4% margin, 2.8% beat) The company reconfirmed its revenue guidance for the full year of $3.72 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $5.25 at the midpoint EBITDA guidance for the full year is $997.5 million at the midpoint, in line with analyst expectations Operating Margin: 43%, in line with the same quarter last year Market Capitalization: $7.48 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Kartik Mehta (Northcoast Research) questioned the shift from DIY to Assisted filings and why the Assisted segment continues to outpace expectations. CEO Jeffrey Jones attributed this to consumer uncertainty and the importance of expert help during tax season. Scott Schneeberger (Oppenheimer & Co.) asked about the decline in franchise operations and the impact of franchise buybacks. CFO Tiffany Mason explained that most of the decline was due to buybacks, not organic weakness, and highlighted the attractive returns from this strategy. Scott Schneeberger (Oppenheimer & Co.) also inquired about the competitive dynamics in the DIY segment, especially around paid vs. free filers. Jones stated that H&R Block focused on paid clients rather than pursuing volume for free filers amid heavy competitor promotions. George Tong (Goldman Sachs) addressed the difference between H&R Block's Assisted volume growth and the broader industry's performance. Jones acknowledged improved conversion and retention, particularly among higher-value clients, but noted the company has more work to do to gain share. Alexander Paris (Barrington Research) probed the effect of tax filing deadline extensions on volumes. Mason clarified that most extensions shift some volume into the next quarter, but the overall impact is not material to full-year guidance. In the coming quarters, the StockStory team will monitor (1) the effectiveness of H&R Block's initiatives to drive retention and conversion among higher-value Assisted clients, (2) adoption and monetization of digital and AI-enabled services in both DIY and Assisted channels, and (3) the impact of further franchise buybacks and integration on operating performance. Shifts in consumer filing timing and regulatory developments will also be important markers for tracking strategic progress. H&R Block currently trades at $55.90, down from $61.64 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Perth Now
30-06-2025
- Business
- Perth Now
Big tax return mistakes you need to avoid this year
Australian taxpayers are being warned to keep up with their records as the ATO will need proof of any claimed expenses. As tax time rapidly approaches, H & R Block told NewsWire Australians should take their time and gather the right supporting documents if they are to maximise their returns this financial year. H & R Block director of taxation communications Mark Chapman had a simple message for taxpayers. 'If you can't substantiate it, you can't claim it,' he said. 'This underscores the importance of maintaining clear records — receipts, invoices, and logs — for all deductions to ensure compliance with ATO requirements.' 142,000 taxpayers had their claims rejected last year. NewsWire / Nicholas Eagar Credit: NewsWire Mr Chapman said Australians record keeping should start with maximising their work-related deductions, with the ATO letting taxpayers claim up to $300 in work-related items without receipts, although he advised to make sure they have a record in case. These include expenses on home office costs, tools and equipment for work, professional memberships and work related travel. BDO business services partner Mark Pizzacalla agrees saying if you've spent money to earn an income there's a good chance it's deductible. 'That includes working-from-home expenses, travel between jobs, uniforms, tools, professional development, and even union fees,' he said. 'Bear in mind that the ATO is increasingly data-driven and you need to keep your receipts and records to ensure that you can substantiate your claim.' He also highlights there a number of things Australians can do to make their taxable income fall prior to June 30. 'If you've been proactive before 30 June, there are a number of strategies that can help reduce your taxable income, including making a personal super contribution, making charitable donations above $2 to gift deductible recipients, or prepaying deductible amounts for certain eligible expenditures,' Mr Pizzacalla said. Taxpayers are being told its not too late to make a charitable deduction. NewsWire / Emma Brasier Credit: News Corp Australia The calls from the tax experts come as the ATO is warning Australians to be patient with their tax returns. Last year 142,000 people who lodged in the first 2 weeks of July had to lodge amendments, or had their returns investigated and amended by the ATO to fix inaccuracies in their tax return, for example, income that had not been declared properly. ATO Assistant Commissioner Rob Thomson said that waiting until late July allows for the ATO to prefill information in your tax return. 'We know doing your tax return is something to tick off your to-do list each year, but there's no need to rush. The best time to lodge is from late July once everything is ready.' 'We pre-fill information from your employer, banks, government agencies and health funds into your tax return to help you get it right the first time – regardless of whether you use a registered tax agent or lodge yourself,' Mr Thomson said.
News.com.au
30-06-2025
- Business
- News.com.au
Tax experts issue urgent warning as end of financial year looms
Australian taxpayers are being warned to keep up with their records as the ATO will need proof of any claimed expenses. As tax time rapidly approaches, H & R Block told NewsWire Australians should take their time and gather the right supporting documents if they are to maximise their returns this financial year. H & R Block director of taxation communications Mark Chapman had a simple message for taxpayers. 'If you can't substantiate it, you can't claim it,' he said. 'This underscores the importance of maintaining clear records — receipts, invoices, and logs — for all deductions to ensure compliance with ATO requirements.' Mr Chapman said Australians record keeping should start with maximising their work-related deductions, with the ATO letting taxpayers claim up to $300 in work-related items without receipts, although he advised to make sure they have a record in case. These include expenses on home office costs, tools and equipment for work, professional memberships and work related travel. BDO business services partner Mark Pizzacalla agrees saying if you've spent money to earn an income there's a good chance it's deductible. 'That includes working-from-home expenses, travel between jobs, uniforms, tools, professional development, and even union fees,' he said. 'Bear in mind that the ATO is increasingly data-driven and you need to keep your receipts and records to ensure that you can substantiate your claim.' He also highlights there a number of things Australians can do to make their taxable income fall prior to June 30. 'If you've been proactive before 30 June, there are a number of strategies that can help reduce your taxable income, including making a personal super contribution, making charitable donations above $2 to gift deductible recipients, or prepaying deductible amounts for certain eligible expenditures,' Mr Pizzacalla said. The calls from the tax experts come as the ATO is warning Australians to be patient with their tax returns. Last year 142,000 people who lodged in the first 2 weeks of July had to lodge amendments, or had their returns investigated and amended by the ATO to fix inaccuracies in their tax return, for example, income that had not been declared properly. ATO Assistant Commissioner Rob Thomson said that waiting until late July allows for the ATO to prefill information in your tax return. 'We know doing your tax return is something to tick off your to-do list each year, but there's no need to rush. The best time to lodge is from late July once everything is ready.'
Canberra Times
26-06-2025
- Business
- Canberra Times
Looking forward to a juicy refund? Here's how a tax agent could get you more
Looking forward to a juicy refund? Here's how a tax agent could get you more Make sure your tax refund is as substantial as possible. Picture Shutterstock This is branded content for H&R Block Tax Accountants. The end of the financial year is just days away, a time when you might start thinking about the size of your tax refund and how you'd like to spend it. But how can you ensure you receive every refund dollar you're entitled to, particularly right now at a time when the cost-of-living continues to squeeze? One way is to enlist an expert who knows tax laws inside and out. Research shows you could be around $500 richer if you do. "Taxes are a pretty complex business, and the majority of Australians prefer to leave it to the professionals to get the best possible refund," said tax expert Mark Chapman from Australia's largest tax agency, H&R Block Tax Accountants. "It's hard for people to completely understand all of the deductions they're entitled to claim, but tax accountants are very good at spotting those opportunities." H&R Block recently undertook research which revealed that 66 per cent of returns self-lodged through the ATO's myTax portal, when reviewed by a tax professional, contained missed deductions with an average value of $525.50. "In the current climate, it's madness that people are basically leaving money on the table for the ATO," Mr Chapman said. "It's the taxman's job to maximise the amount of tax he brings in. So he's not going to let you know." H&R Block's Mark Chapman. Picture supplied In Australia, 80 per cent of taxpayers are expecting a refund, and the average size of refunds last year was nearly $2500. Around 65 per cent of Australia's taxpayers use a tax agent to help with the process. Even in the tougher financial environment, when many people are closely examining their spending to see where they could trim, H&R Block has continued to see its tax agent business increase, Mr Chapman says. "We had more people than ever coming to us to do tax returns in the last tax year," he said. "So I think that probably illustrates that the people realise that even though they had to pay a fee, it was money well spent. And of course, even that fee is tax deductible." No tax-time stress An added advantage of using a tax agent is the peace of mind it offers. While it's unbelievable to end up with a smaller refund because you missed some of those possible deductions, the risky flipside is wrongly claiming deductions. This could leave you open to prosecution by the ATO. Losing through an agent or accountant ensures you're compliant with tax laws, and you can rest easy knowing your return is accurately prepared. "There isn't actually any form of checks with myTax return, you just fill it in and lodge it," Mr Chapman said. "You don't have that kind of expert interaction looking over your deductions to ascertain whether you actually could claim more or if, in fact, you aren't entitled to claim something. What will you spend your tax refund on? Picture Shutterstock "So, there is obviously a greater risk of an audit from the ATO if you do your own tax return, if people claim deductions they aren't entitled to, either inadvertently or deliberately. And you're on your own [if you're lodging your own tax return] - you don't have the professional support in both preparing the return and dealing with any comeback from the ATO." More scrutiny With the trend towards more people working from home and claiming extra work-related expenses, the ATO has warned it will be placing increased attention on the area. "The ATO believes people are claiming billions of dollars of work-related expenses they're not entitled to," Mr Chapman said. "So our agents also strongly focus on those work-related expenses, which many people claim. "Of course, if you can prove that what you spent was legitimately tied to your work, then absolutely you can claim it, but you must be careful, making sure you can substantiate the expense." Time up your sleeve If tax time always seems to come around way too soon and you need extra time to get organised, partnering with a trusted tax expert like H&R Block can give you the breathing space you need. When lodging your return through myTax, the deadline is October 31. But when you lodge with a registered tax agent - like H&R Block - you may qualify for a much later deadline, potentially extending to May 15 of the following year, provided you register with your tax agent by October 31. H&R Block's expert tax professionals make it easy to stay on top of your return, with personalised advice, maximum refund strategies, and flexible appointment options both online and in person. Let H&R Block handle the stress so you can focus on what matters most-knowing your tax is in safe hands.
