Single Touch Payroll is one of the biggest changes affecting employers this tax time, with a local accountant advising it may be best to hold off lodging tax returns.
The implementation of the STP means businesses will start submitting an income statement, what was previously a PAYG payment summary, straight to the Australian Tax Office's MyGov accounts rather than employers providing them directly to employees.
Employers that are not yet STP enabled will still be giving out payment summaries to their employees this year.
Wagga's Bush & Campbell Accountant Courtney Schmid said it may be best to wait until August 1.
"Employers with 20 or more employees were required to start reporting under STP in the 2019 financial year and those with 19 or fewer need to start reporting in this current 2020 financial year," Ms Schmid said.
"Employers do have an extension; if they're reporting under STP, they don't have to do the finalisation until July 31 this year.
"If your employer hasn't finalised your income statement for the year, then you might need to hold off lodging your tax return as the data won't be finalised to the ATO and may be subject to change."
Ms Schmid said the ATO is cracking down on deductions and people need to be mindful of what they claim.
"The ATO has identified there is an $8.7 billion gap between what people are claiming and what potentially they should be claiming in their tax returns, with a large portion of that being work-related deductions," she said.
"People need to have substantiation for all work-related expense deductions including clothing, dry cleaning and laundry expenses...to ensure their deductions will stand up in an audit, which is becoming more prevalent.
"In your tax return you need to put down your occupation and the ATO grabs data from everyone in the country with the same occupation and then they average out the deductions and what people are claiming in their returns.
"If you're claiming a lot more than the average for your occupation, it will raise a red flag and increase the likelihood of your return being audited," she said.
Other hotspot areas for ATO deductions include home office use, overtime meal claims, union fees, subscriptions, mobile phones and internet costs.
Ms Schmid said the ATO will also ensure tax payers are claiming deductions correctly with rental properties.
For example, individuals should gather a four-week diary or a telephone bill that has itemised calls and messages to identify what percentage is actually work-related and what is private.
"The ATO is also cracking down on ensuring tax payers are claiming deductions correctly with rental properties by gathering third party information from sites such as Airbnb and Stayz.com," Ms Schmid said.
Tax cuts set to bring relief to workers
Many Australians lodging their tax returns over the next few weeks will find themselves more than $1000 richer after parliament passed the Morrison government's tax cut package.
Depending on how much an individual earned for the 2019 financial year, they will receive between $255 to $1080.
If someone is earning more than $48,000 and less than $90,000 taxable income, then their offset entitlement will be $1080.
However, a Wagga accountant said this does not automatically mean all individuals will get that money back.
"For the new low and middle income tax offset applicable for the 2019 financial year, it is a non-refundable tax offset," said Courtney Schmid, from Bush & Campbell Accountants.
"Basically this means it will only reduce the amount of tax you pay to zero.
"If your tax offsets are greater than the amount of tax you are liable to pay, you do not get a refund of the excess amount."
Boyce Chartered Accountants director Hamish Cullenward said low to middle income earners up to $37,000 will receive a tax offset of $255.
"The base rate has increased by $55 and those earning between $48,000 to $90,000 will essentially be receiving an offset of $530 more," Mr Cullenward said.
"This will result in tax relief for people, depending on their income, and the impact will be a once-off cash payment into their account which will hopefully stimulate the economy and small businesses around town.
"Hopefully for a lot of the wage earners, even those getting incomes from small businesses, can benefit from this additional tax offset and spend that in town at local shops."