For people, lodging a tax return can be challenging. But Being prepared makes lodging easier. If you’re earning income in Australia, you’ll need to lodge a tax return. You’ll need to declare all your income when you lodge a return tax.
A tax return covers all the income earned during the financial year, which begins on 1st July and ends on 30th June the following year. At the end of the year, you have a limited time to file your tax return. Generally speaking, the deadline is the 31st of October.
If you earn an income, you usually have to pay taxes. As a salaried employee, your employer deducts the taxes from each paycheck and transfers them to the ATO (Australian Taxation Office) on your behalf. This process is known as Pay As You Go (PAYG). If you’re self-employed and have an Australian Business Number (ABN), you will need to pay your own taxes.
When you complete your tax return, the ATO assesses your expenses and deductions to determine whether you will receive a tax refund or owe additional taxes.
The ATO will have all the access to download your tax return, such as the income statement from your employer.
Additional information need to collect includes:
If you plan to claim more than $30,00 so, you’ll also need
Yes, you can lodge your tax return either through the online ATO website or by engaging a registered tax agent to assist you.
If you’re unsure about the Australian Tax system or have a complex situation, it can be helpful to seek the assistance of a registered tax agent for your tax return. They will charge a fee, but it’s tax-deductible when you file your tax return the following year.
If you decide to lodge your own tax return, you can do so quickly on the ATO website, but you’ll need to have a myGov account first. ATO’s myTax offers a ‘pre-fill’ function, which can help you ensure you don’t forget any important information.
The ATO states that electronically filed returns are processed within 2 weeks, while paper returns that are processed manually can take up to 10 weeks. Depending on your income and other conditions, you may be eligible for a tax refund or the ATO’s Tax Help program, where trained and accredited community volunteers can assist you in filing your tax return online. You can also use GST Calculator to calculate your tax.
You can file your tax return using the myTax application, which is free on the ATO’s online tax return platform. To lodge your return online, connect your myGov account to the ATO. Typically, it takes two weeks to process the lodged return.
Lodging through myTax is easy and cost-free. Most of the information from your employer, banks, government, and health funds will be automatically included in your tax return by late July. You only need to review and enter the correct details, add any income that is not already included, include any deductions you have, and then submit. MyTax will calculate your tax for you.
You can also seek assistance from a tax agent to file a tax return; ensure that you use a registered tax agent. You can verify whether the agent is registered or not on the tax practitioner register. Most agents have special lodgment schedules and can submit returns for their clients beyond the October 31st deadline.
Whichever method you choose to file a tax return, make sure you are responsible for the claim. Ensure that the documents and deductions you provide are legitimate before you or your agent submit your return.
FAQ
Is it compulsory to lodge a tax return in Australia?
Short answer: It is not compulsory for everyone. Whether you need to lodge a tax return depends on your individual circumstances, including your income and residency status.
How do I file my tax return online in Australia?
You can use the official ATO online portal, known as myTax. Simply create an account on the ATO website, complete the necessary forms, provide your income and deduction details.
What happens if you don’t lodge a tax return in Australia?
If you don’t lodge a tax return in Australia when you’re required to do so, you may face penalties and fines imposed by the Australian Taxation Office (ATO). These penalties can increase the longer you delay filing your tax return.