Tick & Flick Tax Returns
For many years, the humble tax agent, who consistently and legitimately has been able to claim
$’000s more in tax deductions than taxpayers doing it on their own, has been a thorn in the side of
the Government and the Tax Office.
This is the background to the new ‘standard deductions’ and the Government’s and Tax Office’s
desire to try and elbow tax agents to the sidelines – tax agents claim too much and they don’t like
So, taxpayers applauding the proposed introduction of ‘standard deductions’ may rue the day they
allowed the Government and Tax Office to lead them down this slippery slope.
“A slippery slope that we believe will inevitably lead to the abolition of Tax Returns and Tax
Refunds”, said Andrew Gardiner, spokesperson for the NTAA.
“The Treasurer himself has forewarned that this is a ‘step’ towards a tick and flick system of
returns. If it is this Government’s first step, what’s next?”
Taxpayers love receiving their annual income tax refund. It’s a form of self-imposed, forced
savings. If taxpayers want to ensure they continue to receive their refunds, they would be better
off to reject this proposal for standard deductions outright, unless they make sure it comes with an
iron-clad guarantee that their right to receive annual tax refunds is permanently locked into law.
“History is our teacher”, said Andrew, “and history teaches us that you cannot trust Governments
that bring in standard deductions”.
“In the 70’s, taxpayers were entitled to claim deductions for doctor, medical, hospital and chemist
expenses, education of dependants and self education, life insurance, rates and taxes on their
home, and a deduction for funeral expenses.”
“However, the government of the day criticised the tax system as too complex and introduced a
‘standard deduction’. That deduction was turned into a rebate and then the rebate was abolished
completely. The right to all of these deductions was taken by stealth. Never to be seen again.”
“Unless we are careful, the same will happen here”, warned Andrew Gardiner.
“Taxpayers must reject these measures unless they come with an iron-clad guarantee that any
future adjustments to the system will retain tax returns and tax refunds, and also maintain the
taxpayer’s right to claim deductions in excess of ‘standard deductions’ where they have the
Provided courtesy of the National Tax&Accountants Association - www.ntaa.com.au
Please contact (02) 4731-1405 A Grade Tax Accountants in Penrith for full range of taxation and accounting services, tax returns, tax advice and planning.
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