If you’ve never done a tax return in Australia before and don’t follow the proper steps, it can be tedious and time-consuming. But it doesn’t need to be. Follow our tax return checklist and guide around the end of the financial year and you’ll be done in no time.
Here are the 4 main dates and deadlines that’ll keep you in the know.
Our tax return checklist outlines the information you will likely need to lodge your tax return in Australia, and where you can find all the necessary information. Once you have all this information, you can submit your tax return online.
A tax refund is the money you receive from the government if you’ve paid too much tax throughout the financial year, or have paid for other expenses that qualify as a tax deduction. In other words, it’s the part where you can get some money back.
So how is a tax refund for individuals calculated? The amount of tax you pay depends on your earnings for the entire financial year. Ordinarily, you don’t need to worry too much about the tax you pay if your salary is the same for the entire financial year and you don’t have any other forms of income. But if your income increases over the course of the year, or you’ve gained earnings elsewhere (such as an investment property) you need to declare them, which might move you up a tax bracket. This is how many of us end up owing tax come to the end of the financial year.
If for any reason you’ve stopped working, taken a pay cut or become unemployed, you might be eligible for a tax refund. For an idea of how much tax you should be paying and whether or not you’re eligible for a tax refund, check out the table below.
0 – $18,200
$18,201 – $45,000
19c for each $1 over $18,200
$45,001 – $120,000
$5,092 plus 32.5 cents for each $1 over $45,000
$120,001 – $180,000
$29,467 plus 37 cents for each $1 over $120,000
$180,001 and over
$51,667 plus 45 cents for each $1 over $180,000
It’s worth noting that if you’re not a resident, you’ll be taxed at a higher rate and will still have to pay tax if you earn less than $18,200 a year.
Whether you are expecting a refund or to pay more, the process is the same. Lodge your tax return by following the steps contained in the tax checklist above. You should either receive your refund within two weeks of lodging your tax return or be informed of the amount you owe.
This really depends on how confident you are with lodging your own tax return. If you’re currently still a little confused, then it might be worth considering a tax agent. But if you’re not sure a tax accountant is worth it, consider the following pros and cons.
Important: This page provides general information only and does not take into account your individual objectives, financial situation or needs. You should seek independent, professional tax advice before making any decision in relation to the information presented above. The Australian Taxation Office also has resources available at www.ato.gov.au/Individuals. SocietyOne is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser in relation to any liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.