Lodged your tax return yet? You may be facing a tax bill

Lodged your tax return yet? You may be facing a tax bill

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The last thing anyone wants at this time of year is a tax bill instead of a windfall, especially when things are already tight.

But many could soon face that very nightmare.

The ATO has outlined a number of reasons you may cop a bill from your latest tax return.

Top of the list is the loss of the low- and middle-income tax offset, which ended on June 30 last year.

The offset was introduced in 2018, and those who earned between $37,000 and $126,000 were eligible for a tax benefit of up to $1080.

That increased to $1500 during the 2021-22 financial year.

But those days are gone. And local accountants are reporting they are receiving a bit of flak over the change.

Other common reasons for receiving a rude shock come tax time include not telling your employer you have a HECS or HELP tertiary study loan, incorrectly claiming the tax-free threshold on more than one of your jobs, or moving into a higher tax bracket.

If you receive a tax debt this year, it’s important to pay it by the due date on your notice of assessment.

If you lodged your tax return yourself you will have until November 21 to pay your tax bill, but if you don’t pay by this time the ATO will start charging you interest.

But the ATO advises that a payment plan can be set up if you’re struggling to pay on time. Anyone facing hardship is encouraged to contact the ATO on 13 28 61 as early as possible for support.