GiffardSim principal Rob Giffard shares some insights on the Australian Tax Office's new pre-filling initiative, revealing from his own experience that while the service is an excellent idea, there are definately some wrinkles to be ironed out before it can take off with great success.

The Australian Tax Office’s new pre-filling service is convenient for taxpayers according to GiffardSim Accountants principal Rob Giffard in Nowra, however he warns the system still has teething problems. “Pre-filling is when the Australian Tax Office (ATO) data match information from third parties and put it into your tax return on your behalf. For example if you have supplied your tax file number to your bank, any interest on your accounts is recorded and sent to the ATO,” explained Mr Giffard. 

Mr Giffard warned the information provided by third parties isn’t always accurate and not all institutions participate. “The ATO put the information into your tax return, and people are assuming it is correct, but in some cases, it isn’t,” he said.  Mr Giffard said some of the areas errors had been found included information regarding the child care rebate, interest income and dividends.

GiffardSim Accountants were able to point to a number of examples of incorrect pre-filling information their clients had encountered. “We had a client who was advised they were not entitled to the child care rebate according to information the Tax Office had been supplied from the Department of Family Assistance. We identified that it was incorrect and approached the Department to have it amended.  “We were able to pick up on it before the tax return was lodged and had it updated at the ATO first. If the client had been doing it themselves, they may not have picked up on it.” 

Mr Giffard said taxpayers should not automatically assume their pre-filled information is correct, or make the mistake of thinking if something hasn’t been pre-filled that they don’t need to report it. “There is the possibility that if a person lodges an incorrect tax return, they may get a bigger tax refund than they are entitled to and then they will have to pay back tax and interest. The other situation is that a person may lodge a return and not get enough in their refund, because they are entitled to rebates or imputation credits.” 

Mr Giffard advised taxpayers to review their pre-filling report and to think critically about whether everything required has been recorded. “If not, make sure you go back and have it amended as soon as possible to avoid penalties and to maintain a good record with the ATO.” 

“I think pre-filling will be excellent when it’s up and running, but it’s going to have these teething problems and users need to be aware of that,” Mr Giffard said. If you are concerned some of your pre-filled records may be incorrect or missing or if you would like any further information, please contact either of our experienced accountants, Rob Giffard or David Sim at our Shoalhaven based firm on 4421 4355.