Tax returns are primarily about declaring your income and claiming deductions. Income includes wages, salaries, business profits, rental income, and other earnings.
Deductions are expenses incurred while earning income, which can reduce your taxable income.
When is the Tax Return Due in Australia?
The Australian tax year runs from 1 July to 30 June. Individuals must lodge their tax return by 31 October of the following year.
For example, the tax return for the financial year 2023-24 is due on 31 October 2024.
You need to meet this deadline if you want to avoid any penalties.
Do I Need to Lodge a Tax Return?
Not everyone is required to lodge a tax return.
Generally, you must lodge if you earned more than a certain amount of income, received government payments, or have claims for deductions or refunds.
The Australian Taxation Office (ATO) provides a helpful tool on their website to determine if you need to lodge.
How to Prepare for Your Tax Return
Before you start lodging your tax return, gather all the necessary documents. This includes:
- Group Certificate: This document outlines your income and tax withheld from your employment.
- Payment Summaries: If you received income from other sources like rental properties, shares, or contracts, you will receive payment summaries.
- Bank Statements: These can be used to verify income and deductions.
- Receipts: Keep receipts for any expenses you claim as deductions.
- Superannuation Statements: This provides details of your superannuation contributions.
- Medicare Levy Surcharge: If applicable, you’ll need information about your private health insurance.
How to Lodge Your Tax Return
There are several ways to lodge your tax return:
- Online through myTax: This is the most common and efficient method. You’ll need a myGov account linked to the ATO.
- Using a Tax Agent: A registered tax agent can prepare and lodge your tax return on your behalf.
- Paper Tax Return: While less common, you can still lodge a paper tax return.
What Information is Needed to Lodge a Tax Return?
When lodging your tax return, you’ll need to provide information about:
- Income: This includes salary, wages, business income, rental income, and other sources of income.
- Deductions: You can claim deductions for work-related expenses, self-education expenses, and other eligible items.
- Tax Offsets: These are amounts that reduce your tax payable, such as low-income tax offset or family tax benefit.
- Medicare Levy: This is a tax used to fund Australia’s healthcare system.
- Child Support: If applicable, you’ll need to provide child support information.
What Deductions Can I Claim?
There are various deductions you can claim to reduce your taxable income. Some common deductions include:
- Work-related expenses: This can include uniforms, travel expenses, self-education expenses, and tools or equipment.
- Rental property expenses: If you own a rental property, you can claim deductions for expenses like interest on the loan, property management fees, and repairs.
- Investment losses: You can claim losses from investments if they exceed your capital gains.
How Long Does it Take to Process a Tax Return?
The ATO aims to process most tax returns within two weeks of lodging online through myTax.
Paper tax returns may take as long as 10 weeks.
What if I Owe the ATO Money?
If you owe the ATO money, you can set up a payment plan or request a payment extension.
You have to contact the ATO as soon as possible if you’re unable to pay on time.
How to Check the Status of Your Tax Return
You can check the status of your tax return online through your myGov account.
The ATO will notify you if there are any issues with your return.
What if I Make a Mistake on My Tax Return?
If you discover an error on your tax return, you can amend it online through myTax.
You must correct any mistakes as soon as possible to avoid potential penalties.
By following these guidelines and carefully reviewing your financial information, you can successfully lodge your Australian tax return.
If you’re unsure about any aspect of the process, consider seeking advice from a registered tax agent.