Tax time can be a stressful and unknown period for many individuals and small business owners. Ultimately, we all want to maximise our tax outcome and we want the process to be as simple as possible!
Here are the top 16 questions that we get asked on a very regular basis by both new and existing clients.
Can I book in an appointment?
Here at Freshwater, we don’t take appointments in order to prepare your tax return as such. Instead, you can submit your tax return (or BAS) request via our secure portal. From here, we will log the preparation of your tax return and get in touch with you via our handy chat feature in order to run through any queries and points of note. If required at this time, we will give you a call / zoom. Some of our clients enjoy liaising via Whatsapp, including voice notes; which is absolutely fine with us! We are all about making your life easy, while also saving your time. We totally understand that our systems are not for everyone. Some of you may prefer to meet your accountant in person and some of you simply aren’t a fan of technology and that’s ok! We strongly encourage you to review our website and systems before going ahead as ultimately, we want your tax experience to be right for you.
What are your fees?
At Freshwater, we charge set fees for almost all of the services that we offer, which you can view on our website via our schedule of fees. No one likes nasty surprises in the form of a shock bill at the end of your task, incorporating multiple aspects that you didn’t expect or factor in. We are not the cheapest accounting service, though we are not the most expensive either. We provide a premium service and we strongly discourage you to engage our services if you are looking for the cheapest possible tax provider.
What is the best way to send you my tax information?
As touched on above, we welcome you to send us your information via your very own, secure Freshwater Portal account. Here, you can also: chat with your accountant, access chat history grouped by topic, retrieve previous tax and BAS returns, securely send and store documents and even settle your invoice with our team. This software is called Tax Dome, and it also includes a handy phone app. If you aren’t already on Tax Dome, feel free to send us a request to get you added in.
Can I please have an estimate of my tax outcome prior to your completion of my return?
No (Sorry!). When we receive your tax request we first ensure that we have everything required. Our tax request forms are designed to prompt for all that we need however sometimes you may not realise that aspects are missing. At this point in time that we have all that we require, we will then plot out your tax return. When we do this, we will look for opportunities for additional tax deductions and ways to legally maximise your outcome overall. It is at this point only that we are in a position to provide you with an estimate of your tax outcome. We hope you understand.
What can I claim?
You can claim a variety of expenses on your tax return, depending on your employment status and business structure. If you’re an employee, you can claim work-related expenses such as protective clothing, tools, and car expenses if they meet specific criteria. For small business owners, you can claim business expenses that are directly related to earning your assessable income, including operating expenses, protective clothing, and depreciating assets.
You can’t claim personal expenses such as the cost of obtaining or renewing a driver’s license, personal grooming items like makeup, or conventional clothing, even if your employer requires you to maintain a certain standard of appearance. For more information check out our blog post: “What Can I claim” and remember to always ensure you have proper records to substantiate your claims.
Can I pay you to train me to prepare my own tax return?
Unfortunately, we must decline these requests. As a business, especially during tax season, we handle a high volume of tax return requests. We have scheduling software, dedicated team members, and clear systems in place to process these returns thoroughly and provide a highly personalised service. Given this, it is neither feasible nor commercially viable for us to allocate time to train individuals on preparing their own tax returns. We hope you understand our position.
Can I jump on the phone with you to discuss my simple personal tax return before going ahead?
During our quieter months (January to March), we offer a limited number of 15-minute introductory consultations for $55 (inc. GST), which we donate to the Cancer Council. These calls allow us to answer your questions, explain our processes, and have a general meet-and-greet. Outside of these months, we need to focus on existing tax requests. To compensate, we provide a wide variety of free resources to help you understand tax matters and our processes. Please feel free to explore our website blog and free resources for more information.
Can I have a discount?
We typically don’t provide discounts because our fees reflect our years of experience, professionalism, personal service, and robust systems. The services we offer require a high level of expertise, accuracy, and compliance with regulatory standards. We are not the cheapest accounting service on the market and we strongly discourage you to go with our firm if you are after the cheapest possible service. Over the years we have found that providing discounts actually devalues our business and the significant investment that we make in maintaining skilled staff, up-to-date software, and ongoing professional development.
What will you do to maximise my tax refund?
To maximise your refund, we will thoroughly review your tax submission to ensure that all eligible deductions and offsets are considered and claimed. We stay updated on the latest tax laws and regulations to identify new opportunities for you to save tax. We provide personalised advice tailored to your specific circumstances, ensuring that no potential tax deduction is overlooked. Bare in mind that sometimes (if you are going for a loan / finance), maximising your refund is not the best option. Ultimately, we will provide you with peace of mind and the best possible outcome for your unique situation.
How long will it take you to complete my tax return?
This depends on the time of year that you submit through your tax request (i.e during busy periods we may take slightly longer) and the availability of all your information. Our tax request forms are designed to prompt you for all that we need to prepare your return with the minimisation of “back-and-fourth” however often, we will identify opportunities for additional tax deductions or key pieces of information that may have been accidentally missed. Once we have all that we need from you, we can prepare your return as quickly as within 1-2 days in quiet times of the year and around 4-7 working days during busy periods. If you require your tax return urgently, be sure to let us know. We find that most of our clients are happy to wait, so it’s never usually a problem to bump you up to the top of our list.
I’m starting a new business as a Sole Trader, what do I do?
Starting a new sole trader business involves several key steps. First, determine if you’re eligible for an Australian Business Number (ABN) and register for one. Next, consider whether you need to register for Goods and Services Tax (GST) and Pay As You Go (PAYG) withholding if you plan to hire employees. Set up separate bank accounts for your business and personal expenses to keep your finances organised. Ensure you keep accurate records of all transactions, set up an online bookkeeping software and seek advice from a registered tax professional to help you properly understand your tax and super obligations. For more information on setting up as a sole trader, download our New Sole Trade Guide (available from the resources section of our website).
Should I register for GST?
You should register for GST if your business has a GST turnover of $75,000 or more, or if you expect it to reach this threshold in the first year of operation. You must register if you provide taxi or limousine travel, including ride-sourcing, regardless of your turnover, or if you want to claim fuel tax credits. If your turnover is below the threshold, registration is optional, but once registered, you generally need to stay registered for at least 12 months. For more information, explained in an easy-to-understand manner, check out our blog post: GST for Beginners.
If I am in a couple, does that mean we file a “joint” tax return?
No, we require one tax return request per person. In Australia, couples do not file joint tax returns. Each individual is required to lodge their own separate tax return. However, you will need to provide information about your spouse, including their income and other relevant details, as this can affect your entitlements and obligations, such as tax offsets and family assistance payments.
I’m starting a new business, what structure is going to be best for me?
Choosing the best structure for your new business depends on various factors, including your business goals, the level of control you want, liability considerations, and tax implications. Common structures include: sole trader, partnership, company, and trust. Each has its own advantages and responsibilities. For instance, a sole trader structure is simple and gives you full control, but a company structure offers limited liability protection. It’s important that you understand the responsibilities that come with each structure. For more information, check out our Business Setup Up Guide, available from the resources section of our website. For personalised assistance, get in touch with our team.
Do you guys offer a “fee from refund?”
At Freshwater, we offer various payment options for your accounting fees, including credit card, PayPal, and bank transfer. However, we do not currently provide the option to deduct your accounting fees from your tax refund. This decision is due to the requirement of maintaining a trust account, which involves adhering to strict rules and significant additional administration. Additionally, there are situations where individuals may unexpectedly find themselves in a payable position, such as having an unknown Centrelink / family services debt. In such cases, Centrelink may take your tax refund (or a portion of it) to repay the debt. To avoid these complexities, we have chosen not to offer this payment option.
Do my tax deductions mean that I get money back on my tax return?
Spending money on a tax-deductible expense does not mean you get the full amount back in your tax return. Instead, it reduces your taxable income, which in turn lowers the amount of tax you owe. The actual benefit you receive depends on your marginal tax rate. For example, if you are in the 32.5% tax bracket and you claim a $100 deduction, you will save $32.50 in tax.
For more information or clarification on any the above, don’t hesitate to get in touch with our team, we’re here to help.
Enjoy this post? Sign up here to receive regular, easy-to-understand blog posts direct to your in-box on commonly asked tax questions + small business, time-management tips and more.
