Tax Refund FAQs

Tax Refund FAQs-online-taxHere at Online Tax Australia, we understand that filing a tax return can be a daunting task. Taxation and accounting probably aren’t your core business, and you might have limited understanding of all the rules and regulations that are involved.

That’s why we have built our innovative, easy-to-use online tax return lodgement system. It simplifies and streamlines the entire tax return process, from start to finish. We’ve also put together answers to some of the most common tax refund FAQs.

How do I claim a Medicare levy exemption?

If you are eligible to claim a Medicare levy exemption, this needs to be indicated when completing your tax return. When loading your information you will see a page that asks the following: ‘Are you entitled to Medicare levy exemption? If so, click here.’

When you click on this, it will take you to the Medicare Levy Exemption page. Using this page, you can claim 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 which is an additional charge above the standard medicare levy.

NB: Suggest including annotated screenshots to accompany this section so that users can quickly and easily see where / what the screen look like.

What can I claim for my motor vehicle when I use it for work?

Claims for motor vehicle expenses using the cents per km method are very simple whereas more detailed log book car claims can be a little more complex. Up until 2015, there were four ways to calculate work related car expenses on your tax return:

  • Kilometre based method
  • Log book percentage claim (12 week log book required)
  • 1/3 of actual operating expenses, including interest and depreciation
  • 12% of the cost of the vehicle.

However, the ATO has introduced new rules for the 2016 financial year. The ATO has eliminated the:

  • ‘1/3 of actual operating expenses, including interest and depreciation’ method, AND
  • ‘12% of the cost of the vehicle’ method

There are now only two methods available to calculate car expense claims on your tax return:

  • Kilometre based method
  • Log book percentage claim (12 week log book required)

If this all sounds like double-dutch to you, don’t despair. Our friendly team of experts can help determine which option will provide you with the largest possible claim amount. Feel free to contact us to ask for help at any time.

Can I claim for items or expenses that I use for both work and personal reasons?

Yes. You sure can. You can claim for items that have both business and personal usage, so long as the item in question represents a deduction type that is normally allowable. Mobile phone bills are often an expense that is used for both business and personal reasons.

The way to claim the expense in these cases is to apportion the expense between your business or work usage, and your personal use. So, if you use your mobile phone work usage accounts for 80% of each bill, then you claim that 80% as an expense; but not the entire mobile phone amount.

For more information about tax deductions and work-related expenses, visit:

Do I need to send my group certificate, PAYG statement or other documents anywhere?

No. There is no need for you to send any documents or statements to either the Australian Taxation Office (ATO) or to us. Simply file them away in a safe place, keeping in mind that you need to retain all files for a minimum of five years, just in case the ATO has a query.

It is only in rare instances that the ATO may require us to file copies of PAYG summaries. This usually only occurs when there is an abnormally large refund due. In this situation, we may request that you provide us with a copy of your PAYG Summary.

Do I need to provide the Australian Tax Office with a copy of my return?

No. There is no need for you to provide the Australian Tax Office with a hard copy of your tax return. Our electronic system will lodge your tax return for you. You can print and retain a copy of your return for your records if you like.

Will I have a cheque sent to me? Or can my refund be paid into my bank account?

The Australian Taxation Office no longer issues cheques. All income tax refunds are paid directly into your nominated bank account. You should receive payment within approximately 14 days from the date the return is lodged with the Taxation Office.

What happens if I owe the Australian Taxation 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 within approximately 14 working days, at your nominated address.

Contact Online Tax Australia for All Your Online Tax Return Needs

If you have any other tax refund questions, then contact the experienced, professionally qualified, friendly team at Online Tax Australia today:
• Call us on (03) 9852 9051
• Email us at support@onlinetaxaustralia.com.au