Making a mistake on your tax return is a common human error. The good news is that you usually have a two-year window to amend it.
Whether you reported your income incorrectly, claimed non-deductible expenses, or forgot to exclude certain income, you can correct these errors within this timeframe.
Here are some common reasons you might need to amend your tax return:
- Incorrect Income Reporting: Ensure your assessable income is accurately reported.
- Non-Deductible Expenses: If you claim non- tax-deductible expenses, it’s time for an amendment.
- Private Use Portion Error: Accidentally claiming the private use portion of an expense? You can fix that.
- Loss Reporting: Double-check your reported losses to make sure they’re accurate.
- Lack of Business Records: If you don’t have the necessary records to support your claims, it’s essential to amend.
The two-year amendment period generally begins from the date on your notice of assessment or when the commissioner issues the notice. Luckily, there’s no limit to the number of amendments you can make within this timeframe.
To make the amendment process smoother, regularly cross-check your records against the original documents. It’s also wise to understand what should be excluded from your business’s assessable income.
When you’re ready to fix your return, you can choose from various methods:
- Tax Agent: Utilise a registered tax agent, registered with the Tax Practitioners Board.
- SBR-Enabled Software: If you prefer a digital solution, use Standard Business Reporting (SBR)-enabled software.
- Online Services for Business: Access the online services for business platform.
- Letter: Send a letter detailing the necessary amendments.
- myGov (for Sole Traders): If you’re a sole trader, use myGov for a hassle-free correction process.
Remember, everyone makes mistakes, and the important thing is correcting them promptly. With these options at your disposal, fixing errors on your tax return has never been easier.