We recently helped a business client amend a prior tax return, achieving a $40,000 reduction in tax payable. Here is what we identified — and why a second opinion on your previous returns is often well worth it.
What We Found
- Office meals and refreshments: A previous accountant had incorrectly classified these as non-deductible entertainment expenses. In reality, they qualified as deductible workplace refreshments.
- Travel allowance: Trips genuinely incurred for business purposes had not been claimed because the original receipts had been misplaced. We were able to reconstruct the claim using other supporting evidence.
- Salaries paid to family members under 18: These were structured correctly to access the tax-free threshold, on genuine services actually rendered — but had not been claimed in the original return.
- Motor vehicle expenses: Car expenses that had been entirely overlooked by the previous accountant were identified and added to the amended return.
- FBT-exempt benefits: Additional exempt FBT benefits were identified — deductible for the business and tax-free for family employees.
- GST input tax credits: Relevant business expenses that had not had GST claimed were corrected as part of the amendment.
What This Case Demonstrates
This is a good example of why a second opinion can make a real difference — even a well-prepared return can miss legitimate deductions or misclassify expenses. The gap is rarely the result of negligence. More often, it comes down to the difference between a tax return preparer and a proactive tax planner.
Have Your Prior Returns Been Reviewed?
In many cases, the ATO allows amendments to prior year tax returns, meaning savings identified today can also apply retroactively. If your previous returns have not been reviewed by a specialist, it may be worth having a closer look.
At Impact Taxation & Financial Services, we focus on advanced tax planning strategies to help our clients keep more of what they earn. Contact us on 1300 TAX SAV (1300 829 728) or reach out here for a complimentary consultation.
This article provides general information only and does not constitute personal tax advice. Tax outcomes depend on individual circumstances.
