Unclaimed Tax Deductions from Previous Financial Year

geek001 on 05/08/2022 - 13:51

Hi all,

I am doing my tax return and I found an insurance invoice from a previous financial year for my investment property for around $1000. I checked my spreadsheet from that period and found that I hadn't put it in. Is it ok if I just roll it into this year's return or do I have to file an adjustment to last year's return?

The deduction I get back will be the same, there is no advantage financially for me to file it under this year's return, I guess it is just less effort to do it rather than file an adjustment to last year's return, if I can do it that way legally.

Thoughts?

Financial

Comments

  • Muzeeb on 05/08/2022 - 13:53
    +3

    You can make adjustments online going back 3 years if memory serves me correctly.

    It's super easy and then it's legit as well.

    • bemybubble on 05/08/2022 - 14:09

      2 years from notice of assessment.

      Beyond 2 years you can lodge an objection - generally if the tax payer is disadvantaged they will allow it.

      • Muzeeb on 05/08/2022 - 14:12

        Thanks for the clarification.

  • JimmyF on 05/08/2022 - 14:31
    +3

    or do I have to file an adjustment to last year's return?

    This…. You can't claim things like that in one year that happened in another.

    So you need to work out if it is worth the 'hassle' for a missed $1000 invoice aka how much will you really get back vs what the accountant might charge for doing it.

    • geek001 on 05/08/2022 - 14:33

      Ok, thanks. Just wanting to make sure that is not an option.

      • JimmyF on 05/08/2022 - 15:42

        Oh anything is an option and can be claimed that you want to, but if you want to keep it above board for auditing etc, then you need to do an adjustment.

        As I've said a few times, you can claim anything you ever want for a tax return, but only when being audited will you really find out what is allowed and what isn't ;)

        • geek001 on 05/08/2022 - 16:30

          Definitely want to be above board when it comes to my tax return. I just thought since I am not actually trying to rip off ATO and the end result is the same, I just thought I can do it the easy way. Thanks for the confirmation again.

  • AustriaBargain on 05/08/2022 - 16:39

    I wonder if adjusting previous years returns would increase the odds of an audit.

    • bemybubble on 06/08/2022 - 10:06

      Not always - you need to specify a reason on the amendment.

      If your talking tens of thousands then yea, sure you might get pinged. But no more pinged than if you had originally had it…

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