Some people love it, some people hate it. But what we can agree on is that the simple tax return is not so simple anymore.
Completing your yearly tax return is more complex than ever. And with the digital age in full swing, it is more easier for the ATO to data match your income. Couple that, with more complicated methods of claiming deductions and the ATO's ability to audit it is more important today to get the return right.
We at SNA Advisory aim to provide this service as efficiently and in a cost effective way. We data match your source information with that provided to the ATO to limit the amount of rework later on. We have seen the amount of amendment requirements drop by over 80% when we introduced this procedure.
But we don't leave it there. Upon completion of your income tax return we look at possible opportunities for you. Whether a tax strategy to maximise your refund, or a referral to one of our partners for tax effective insurance, mortgage restructuring or wealth creation activities. Your tax returns enables us to identify these opportunities for you.
We completed the tax return for a teacher. She had just lost her husband a couple of years prior and she was just getting back on track from the shock. It was the first time we did her return. She was back at work full time and earning in excess of $80,000. She has one child under the age of 10. She mentioned one of her goals was to provide for her child's university costs.
We looked at three options for her. Which in the end she took full advantage off.
1. We referred her to one of our finance brokers. They were able to refinance her dated loans and obtain a cheaper rate and longer term. It gave her the flexibility to pay off extra or structure her repayments at a lower rate over a longer period, giving her some flexibility.
2. The key to her financial stability was has work as a teacher. So we referred her to a financial planner that was able to organise tax deductible income protection insurance that protected her income stream. She receives a tax deduction for the premiums paid, and peace of mind that should anything happens, she will be able to provide for her child.
3. As for providing for her child's future cost, we had a joint meeting with the financial planner and ourselves. It was decided to invest the savings from mortgage repayments into an investment as recommended by the planner. When the time came the client had the choice to either cash out the investment or redraw on her mortgage, depending on performance. It gives her a degree of flexibility at the time.