Standard Deductions: Tax Returns Made Easy

Standard Deductions: Tax Returns Made Easy

Are you?	- A taxpayer?
At a glance:	- In the recent Federal Budget, the Government announced a scheme which may save millions of taxpayers from having to fill out an income tax return.
You should:	- Be aware of the proposed increase to superannuation guarantee contributions. - Contact us if you require any clarification or advice.

1.	One of the many recommendations made by the Henry Tax Review was to scrap tax returns for individuals with simple tax affairs and replace them with a one page pre-filled form from the Tax Office.
2.	Each form will include the taxpayer's income along with a standard deduction for work related expenses.
3.	The standard deduction has been set at $500 for the 2012 income year with an increase to $1,000 for the 2013 income year onwards.
4.	Taxpayers who wish to claim deductions above the standard deduction will still be able to do so by continuing to lodge income tax returns and maintaining appropriate documentation to substantiate their claims.
5.	This measure is aimed at saving millions of taxpayers with simple tax matters from having to use the services of a tax agent to lodge their income tax returns.