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Who is 123 Tax online?
123 tax online has operated this website since its launch in 2004 and is a division of the accountancy practice Colin Paull & Associates, based in Sydney .. The team at Colin Paull & Associates has thoroughly tested this system for accuracy and security, so you can be assured that your tax return is in the best hands.
Who can use this service?
You can use 123 tax on line service if you earned income from any of the following methods:
- Group Certificate/PAYG Income
- Eligible Termination Payments
- Government Payments (e.g. pension, Austudy allowance, Newstart allowance etc.)
- Private Pensions
- Interest Income
- Dividend Income
- Sole Trader/Business Income
- Trust Income
- Income from a partnership
- Foreign Income (excluding foreign pension)
- Rental Income
- Capital Gains
- Other Income (e.g. Directors Fees, Allowances etc)
How do I claim a Medicare levy exemption?
If you are eligible to claim a Medicare levy exemption, this can be changed on the tax assessment page (where you get your final tax estimate) in the first part of the lodgment section. At the bottom of this page, you will see "Are you entitled to Medicare levy exemption. If so click here". When you click on this it will take you to the exemption page which will calculate either your full or half exemption depending upon your circumstances. Please note, if you have private health insurance you are not eligible for the Medicare levy exemption. Private health insurance only excludes you from the Medicare levy surcharge.
Can I lodge previous years' tax returns at this website?
Yes, 123 Tax online can accept lodgments of 2001 and 2002 tax returns, even though the due date has expired. Tax Returns lodged after this date may incur a penalty from the Australian Taxation Office (ATO). However, if you lodged your 2000 return with a tax agent, your chances of being penalized are reduced. To lodge your 2001 or 2002 return, or for information regarding previous years, click here
Do I need to send my group certificates or other documents anywhere?
You do not need to send your group certificates or other statements to either the Australian Taxation Office (ATO) or to us. Simply file them away and keep them for at least five years in case there is a query in the future.
Can I claim Family Tax Benefits, Family Allowance, or Spouse with dependant rebates via the website?
The baby bonus will automatically be claimed on your behalf based on information you provide us in the dependant's part of the tax return. If you are eligible for a Family Tax Benefit, and you have not already been paid from Centrelink for this benefit, the ATO will automatically credit your refund with the amount that is due to you. To get an approximation of the amount you are eligible for, click on the "Family Tax Benefit" button within the Assessment Estimate screen in your online tax return.
You can claim a spouse rebate WITHOUT dependant children through our service. Just make sure that the dependant section does not appear in your tax return and the rebate will be automatically calculated for you.
Why is the postal address on my return for Tax Returns Australia?
If the postal address is for 123 Tax online, this indicates that you have selected for our fee to be deducted from your tax refund. This means your assessment and refund from the Australian Taxation Office (ATO) will be mailed to us. We will then deduct our fee, and forward your assessment and the balance of your refund to you.
How do I delete an item?
There are two ways to achieve this. If you are in the form you wish to delete, simply click on "remove form" button at the bottom of the screen. Otherwise, simply go to the summary page and click on "delete item" or "delete section" next to the listing that you want to remove.
How do I add a section to my return that is not presently there?
To add a section to your return you will need to go back to the interview section and click on "yes" to the relevant question. Just click on the Interview Tab at the top of the screen and then find the interview section where the relevant question is asked and change your answer to "Yes". Make sure that you click on "update" at the bottom of the screen to ensure that your changes are recorded.
What information do I need to complete my return?
One of the features of 123 Tax on line is that after answering a set of simple Yes/No questions, we will display for you a list of the documents that you will need (e.g. Group Certificates, Dividend Statements) in order to complete your tax return on-line. There is no requirement for you to send these documents to 123 Tax on line or the Australian Taxation Office (ATO).
How can I be assured that what you calculate as my return is correct?
123 tax on line has thoroughly tested our calculating methods to ensure they align with Australian Taxation Office (ATO) guidelines. Rest assured , your refund will also be assessed by the ATO so it is important that you provide us with all the relevant information to calculate your return.
How much does it cost?
123 Tax on line service is a very affordable alternative at only AUD $39 (including GST). This modest price is much lower than the cost of some traditional methods of personal tax preparation.
What payment options do you provide?
123 Tax on line provides a cash less option, you can elect to have your fee deducted from your tax refund, for an extra service fee of only $6 (total lodgment fee $45, incl GST). Please note that your tax refund must be at least $45 to select this option.
Will I get a cheque sent to me or can my refund be paid into my bank account?
The choice is yours. You can choose to have your refund paid directly into your nominated account, or have it sent via mail in cheque form. You should receive payment in around 14 days.
What are you going to do with my personal information?
Your personal information will reside in the 123 Tax on line secure database. Once you confirm your tax return is ready for lodgment, your information will be sent to the Australian Taxation Office (ATO) via a direct secure link to the ATO. In accordance with Privacy Laws, your information will not be disclosed to any other party without your prior consent.
I don't use the Internet that often, and don't understand all that complex tax stuff. What help is there available to me?
123 Tax on line provides comprehensive assistance to you at every step of the way in the on-line tax return. The assistance available includes on-line help and off-line help via a tax phone help line, which is manned by qualified tax professionals. Our on-line help is usually more than adequate and is available at any time by clicking the "help", or "contact us" icons found throughout the on-line tax return.
How long will it take to complete; I don't have a lot of time?
Once you have the relevant information at hand, on average, your tax return should take around 20 minutes. More complex returns can take longer, perhaps up to 60 minutes. Remember that you can also save what you have completed so far and then come back later to finish your tax return.
Can I set up multiple tax return accounts for other members of my family with only one email address?
Yes, you can. Simply click "Get started" from the home page and proceed through the interview section. Enter your email address for each new return. This will help us identify one account from another.
What happens if I owe the Tax Office money?
If your estimated tax assessment indicates that you owe the Australian Taxation Office (ATO) money, you will receive a tax payment advice from the ATO in around 14 days, at your nominated address.
I am leaving to travel overseas, do I need to complete my tax return before I leave
It isn't necessary to complete a return before leaving Australia unless you will not be back before the due date for lodgement of your return (October 31st). If you won't be back until after the lodgement date the Australian Taxation Office will give you an extension of time to lodge.
How long do I need to keep my receipts?
Five years from the date of lodgement of the tax return in which the claims are made
Is a credit card slip enough as a receipt?
Yes, provided it gives full details of the supplier and date of purchase. Taxpayer can notate on the receipt the type of goods supplied .
Can I claim fees paid to my tax agent?
Fees paid to your tax agent for preparation of your return, amendments and generally handling your tax matters are all deductible. You can also claim travel to your tax agent.
Can I claim anything for the cost of my children's education?
No, child education costs are not a deduction for tax purposes.
Can I just claim $300 work related expenses as this does not have to be substantiated?
No you cannot just claim $300. You must incur any expense before it is claimed. Whilst you may not need receipts below $300 you must have still spent the money and it must be relevant to your employment.
I buy tea towels from a charity each year when they ring me. Can I claim this as a deduction?
No, you are receiving something for the money expended. This is considered to be a purchase. The same applies to the purchase of raffle tickets.
I won $150,000 on a game show this year, it this taxable income?
Only if you are a professional contestant. If someone appears as a regular contestant in these shows then you would be considered to be a professional. If it was a once off appearance then it wouldn't be taxable.
My 14 year old daughter has received $600 from a trust distribution, does she have to lodge a tax return?
Not if this is her only income. A minor may earn $643.
Is there a limit on the number and amount of tools I can claim each year?
There is no limit on the number or amount spent on tools each year. They must be work related, and you have receipts to substantiate the expenditure | 
