How to correct or amend your Tax Return   

From entering incorrect details to misreading questions, we’ve all made mistakes when filling out forms. But while this might happen at the dentist or when making a dinner reservation, what happens if you make a mistake or forget to include something in your tax return? 

While it may seem like a painful task to tackle, the rewards from correcting it can far outweigh the extra time you’ve invested.  

The good news is any mistake can be fixed, so keep reading to understand what constitutes a mistake, and how to fix it if you’ve made one. 

What are some of the main reasons you need to correct or amend a Tax Return? 

Completing your tax return can be a confusing process; understanding where you might’ve gone wrong is an important part of fixing your form.  You may need to amend your tax return if you have: 

• Made an error when answering a question,  
• Forgotten to include some income or a capital gain,  
• Forgotten to claim an offset or deduction, or  
• Had something change after you lodged your tax return, such as:
  • Receiving a revised payment summary or another payment summary, 
  • Your employer finalising or updating your income statement, or
  • Repaying an amount of income you were overpaid. 

What should you do?      

Thankfully, there are several ways to resolve any “whoops” you may have made in your tax return.  

If you are utilising a Tax Agent (like Empower Wealth), you should work closely with your Tax Agent (Accountant) to resolve the mistake.   

If you do your tax directly with the Australian Tax Office (ATO), you have two options. You can:  

• Deal directly with the ATO and follow their recommendations, or 
• Reach out to Empower Wealth’s tax team to see if we can help you manage this problem for you.  

What happens if you don’t correct or amend your tax return?  

Filling out the wrong details can lead you to omit claimable expenses which, in turn, can result in you receiving less of a refund or paying additional tax you didn’t need to pay. You might miss claiming deductions for expenses like:   

1. Asset Depreciation:  

Homeowners can claim deductions on assets due to their decline in value over time. To understand what assets are included, click here.  

2. Car or Travel expenses:  

You may be able to claim expenses on your car if you use it for work. Travelling between workplaces, meetings, client premises, and while you are transporting goods or items can all be claimed. 

Travel expenses can include car hire or taxi fares, accommodation, flights and transfers and meals while travelling.  

3.  Uniform and Protective clothing: 

If your workplace requires you to wear a uniform, you may be eligible for claiming deductions. This includes the uniform itself, protective clothing and shoes, safety equipment, sunglasses, sunscreen, and laundry costs.  

4. Education Expenses:  

Taking on additional courses or studies to help you further your career at work can also be claimed. Programs such as seminars and conferences, short and long courses, along with educational equipment such as reading materials, books, computer expenses, and internet costs are all covered.  

5.  Other expenses: 

There is a wide range of work-related deductions that can also be claimed, including stationery, journals, tools or equipment, phone or internet costs, computer expenses, union fees and membership and more.   

Is there a time limit for correcting or amending a Tax Return? 

Individuals and sole traders generally have two years to submit an amendment to their tax return. This time starts from the day after your Notice of Assessment is sent to you. 

If this article has raised any questions for you, please feel free to reach out to our Tax accountants here at Empower Wealth. Petar or Danish would be delighted to have a complimentary chat with you to discuss your situation.  

You can connect with Petar via email at [email protected], if you are located in NSW, ACT, QLD or the NT 

Or  

You can connect with Danish via email at [email protected], If you are located in VIC, TAS, SA or WA