Changing trends in tax returns

The ATO recognises there have been significant changes in the community in how people earn their income and what claims they can make — all of which mean many have more complex tax affairs than in the past.

At a National Institute of Accountants presentaion in June 2008 the Second Commissioner of Taxation made the following comments:

"The number of investors in the community has grown significantly.

Ten years ago, 34% of people owned shares. The percentage is now 46%. That’s 7.26 million people.

In the space of two years the number of taxpayers with rental properties increased by 100,000 to 1.6 million people in 2006.

Further, employees are claiming increased costs associated with their jobs.

Each year we report growth in the number and value of claims for work expenses.

The types of claims have broadened too with home office and technology tools featuring in recent years. These days 6 out of 7 employees claim work expenses, and the figure rises to 9 out of 10 across the higher income ranges.

These trends in the community are reflected in our tax time focus for 2008.

Traditionally tax time messages have focussed on work expenses of employees. That’s still on our agenda but we have a much more varied focus these days reflecting those community trends.

For tax time this year we will be paying particular attention to:

a investors, particularly rental properties
a dividends and interest
a sale of investments
a avoiding dodgy tax schemes
a saving for retirement
a salary packages of executives and directors, and
a employees and their work expense claims."

By D Maynard
CEO My Tax Zone

Copyright 2014. My Tax Zone.