How to Lodge your first tax return

Lodging your first tax return can appear tough, but understanding the process is the only way to ensure you comply with your tax obligations and potentially receive a refund.

This guide will walk you through the steps involved in lodging your first tax return in Australia.

What is a Tax Return?

A tax return is a document you submit to the Australian Taxation Office (ATO) that outlines your income and deductions for the financial year.

It determines whether you owe the ATO money or if you’re eligible for a refund.

When Do I Need to Lodge a Tax Return?

Generally, if you earned more than the tax-free threshold, which is currently $18,200, you must lodge a return.

This includes income from employment, business, rental properties, or other sources.

When to Lodge Your Tax Return

The tax year in Australia runs from 1 July to 30 June. Tax returns for the previous financial year are typically due by 31 October of the following year.

While you can lodge your return earlier, it’s essential to have all your documentation ready to avoid delays or errors.

Your Tax Information

Before you start your tax return, gather all the necessary documents. This includes:

  1. Income statements: Pay slips, group certificates, and any other income records.
  2. Deductions: Receipts for work-related expenses, education costs, and other eligible deductions.
  3. Tax file number (TFN): Ensure you have your TFN handy.
  4. Bank account details: For refunds or tax payments.

Choosing a Method to Lodge Your Tax Return

You have three main options for lodging your tax return:

  1. Online through myTax: This is the quickest and easiest method. You’ll need a myGov account to access myTax.
  2. Using a registered tax agent: A tax agent can prepare and lodge your tax return on your behalf for a fee.
  3. Paper form: You can lodge a paper tax return, but this is generally slower and more time-consuming.

How to Lodge Your Tax Return Online

Lodging your tax return online is generally the most efficient method. Here’s a basic outline:

  1. Create a myGov account: If you don’t already have one, you’ll need to create a myGov account to access myTax.
  2. Link your tax file number: Connect your TFN to your myGov account.
  3. Start your tax return: Use the pre-filled information provided by the ATO as a starting point.
  4. Add income and deductions: Enter any additional income or deductions not pre-filled.
  5. Review and lodge: Carefully review your tax return before lodging it.

What Information Do I Need to Lodge My Tax Return?

The specific information you need will depend on your individual circumstances.

However, some common details include:

  1. Income from employment, business, or investments
  2. Deductible expenses related to your work or business
  3. Taxable fringe benefits
  4. Government payments received
  5. Private health insurance details
  6. Details of any dependents

What are Common Tax Deductions?

Tax deductions can reduce the amount of tax you owe. Some common deductions include:

  1. Work-related expenses: This can include travel, uniforms, self-education, and professional development costs.
  2. Home office expenses: If you work from home, you may be eligible for deductions.
  3. Donations to registered charities
  4. Investment losses

How to Claim Tax Deductions

To claim a tax deduction, you generally need to have a record of the expense, such as a receipt or invoice.

Keep in mind that not all expenses are deductible, so it’s important to understand the ATO’s rules.

What Happens After I Lodge My Tax Return?

Once you’ve lodged your tax return, the ATO will process it. If you’re entitled to a refund, you’ll usually receive it within a few weeks.

If you owe tax, you’ll receive a notice of assessment.

Can I Amend My Tax Return?

If you make a mistake on your tax return, you can amend it. You generally have one year from the original lodgement date to make changes.

When Should I Consider Using a Tax Agent?

While many people can successfully lodge their tax return independently, there are situations where using a tax agent might be beneficial.

For example, if your financial situation is complex, you’re unsure about claiming deductions, or you simply don’t have the time to do it yourself, a tax agent can provide valuable assistance.

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