How Professional Tax Advice Helps You Stay ATO Compliant

The ATO is not guessing about your affairs anymore. It is running automated data-matching across bank accounts, share registries, property transactions, and third-party platforms, among others. If what you declare does not match what those systems report, you will hear about it.

What a Registered Tax Professional Does for Your Compliance

If you are working with a registered tax accountant in Liverpool, NSW or anywhere in Australia, they are not just filling in forms. A qualified practitioner does several things that directly reduce your compliance risk.

They Know Which Deadlines Apply to Your Situation

Not all taxpayers have the same lodgement deadlines. Sole traders, companies, trusts, and SMSFs each operate on different cycles. A registered tax agent can extend your lodgement deadline in some situations, which is a genuine protection. If you self-lodge, you do not get that extension by default.

They Apply the Safe Harbour Provisions

Under the ATO's safe harbour provisions, if a registered tax agent makes an error on your return and that results in a tax shortfall or late lodgement, you are protected from certain administrative penalties, provided you gave your agent all the relevant information they needed. 

The ATO administers the safe harbour provisions. The TPB separately warns that clients of unregistered preparers have no safe harbour coverage. 

They Keep Up With Rule Changes

For employers, the move to Payday Super is now calculated on 'qualifying earnings' rather than 'ordinary time earnings.' The two concepts are largely similar, but qualifying earnings does extend to commissions for work done entirely outside ordinary hours, which were not previously included. 

For property investors, travel to inspect a residential rental property has been non-deductible since 1 July 2017, and interest deduction claims remain a frequent area of ATO scrutiny. A professional knows which claims are defensible and which are likely to attract scrutiny.

They Help You Fix Problems Before the ATO Finds Them

If you have an error in a prior year return, a registered practitioner can help you lodge a voluntary amendment. The ATO treats voluntary disclosure far more favourably than errors it catches itself. Voluntary amendments typically result in reduced penalties, and sometimes no penalties at all.