What is the cost of free? What the ATO doesn’t tell you about MyTax ….

Let’s face it, the ATO is not exactly the poster boy for consumer confidence, however according to the ATO statistics there is an increasing use of the free government tax lodgement system (MyTax) which accounted for 34% of all individual returns (up by 5% from the prior year).

But did you know:

  • 9% of total tax revenue ($231.2b) was collected from individual taxpayers.
  • This amount excludes property taxes, taxes on insurance, taxes on motor vehicles taxes on capital transactions, GST and so on..
  • The ATO reported that as a result of a recent random sampling of returns claiming rental properties, nine out of ten contained errors.
  • The ATO has advised that the number one cause leading to the dis-allowance of rental property claims continues to be where taxpayers are unable to produce receipts or other documentation to support a claim.
  • The ATO auditing system is continually evolving with a series of 20+ computer models run on every tax return to flag suspicious data or abnormalities

 

So, what is the cost of free? And what is really fair?

Australians are all about fairness and unfortunately the numbers suggest our system is far from fair. The problem is that most taxpayers don’t realise how the system works, how many taxes they actually pay nor the extent of their eroding privacy.

They opt for the free MyTax platform not realising its geared to compliance and not to helping them claim every possible deduction to pay less tax.

For example, have you ever received a letter from the ATO letting you know that you have under claimed expenses, or overstated income?

Interesting, because it’s clear Australia has one of the most comprehensive tax monitoring and collection systems in the world and are 100% dedicated to continual improvement.

Our point, the ATO know when you make a mistake but only tell you when it’s in their favour clearly because individuals bear the brunt of the Australian tax system, and that staggering burden is rising each year.

Worse still, our tax system is undeniably complex and the rules keep changing so more and more taxpayers are getting it wrong with MyTax and paying the price.

So as a taxpayer, if you’re obligated and accountable surely you should be confident you’re getting it right and claiming everything your entitled to. That’s where TaxTank comes in.

Here's how it works

There are three tanks that act like digital containers to organise your different incomes, expenses and properties whilst securely storing receipts and documents year after year to protect against audit. When you allocate income and expense items, you’re actually managing your tax and you can see your adjusting tax position (in real time).

Property Tax

Monitors your whole property portfolio in one place.

Work Tank

Manages your work income using live bank feeds.

Spare Tank

Stores all your files together and easily find what you need.

TaxTank monitors your forecasted tax position against actual data collected through the year to alleviate those end of year surprises… and for property investors we’ve partnered with CoreLogic to forecast growth, equity and property performance so you compare investments and make better decisions. Better still, we’ve built in a heap of tax smart tools to ensure taxpayers claim everything they are entitled to, accurately! And you can invite your accountant to completely take the hassle out of tax time. Ensuiree nothing is missed, lost of forgotten year after year with TaxTank.