Options for getting tax refunds

Tax refunds can be made through several different formats depending on what suits the individual

There are a number of options available when it comes to lodging tax refunds, with different options better suited to the various levels of difficulty associated with some people’s individual financial situation.

E-tax - E-tax is a great method for individuals to lodge their own tax forms online through the Australian Taxation Office free online service, known as E-tax.  One of the most popular methods of tax refunds, in 2008 2.2 million Australians used the e-tax system.

The benefits of using e-tax for a tax return include:

• Majority of refunds paid within 14 days
• Free for both the lodging and preparation of the tax return and any baby bonus claims
• E-tax provides an on-demand estimate of the tax refund or tax debt
• Receive final estimate of the return or baby bonus entitlements
• Built-in checks ensure tax returns are completed correctly
• Can be adapted to suit specific working situation
• Access to Tax Office publications, examples and help screens

However, due to a range of legislative changes and additional enhancements there were a number of changes made to the e-tax system just before tax time in 2009 that those who use the e-tax system should be aware of before using the system. These changes to the e-tax system for 2009 included changes to the software itself and the verification process.  What’s more, changes were made to the pre-filling service.

Changes to pre-filling in 2009 include:

• pay as you go (PAYG) income tax instalment amounts
• private health insurance rebate details
• rental property address details from 2007-08 rental property schedules
• an enhanced Alerts service through which individuals receive an alert by email
• family tax benefit (FTB) claim status information is now separate as FTB claims are no longer administrated by the Tax Office
• letter reminders of work related expenses and any requirements to lodge a schedule of work related expenses (SWE)

E-tax is not available for Mac users 

Phone Lodgement – is an ideal method for people with a short tax return who have simple tax affairs, meaning mainly dividends and investment income. Phone tax lodgement provides an on-the-spot estimate of tax refunds and takes only 12 minutes to lodge, according to the ATO.  Available 24 hours a day, seven days a week, a tax lodgement made through the phone option will see most tax refunds issued within 14 days. It should be noted, that if you did not receive the short tax return in the mail then you may not qualify for the phone tax option.

Tax Pack - TaxPack is a print publication that can be mailed back to the ATO as the tax lodgement.  TaxPack is divided into two parts with the Tax Pack with the tax return for individuals while the Tax Pack supplement with the tax return for individuals (supplementary section).

Accountants – are great option for those with several financial issues and a complicated tax return. Usually being a tax deduction, accountants are great to help with financial situations such as executor of deceased estates, self-employed, partners of partnerships, rental property owner or directors of companies.

Tax agents - Tax agents are perfect for those with more complex tax lodgements and may have complications such as multiple incomes, properties or investments. Overall a tax agent is perfect for those who may not be confident in their tax skills.