Australian Tax Return

Filing a tax return is a statutory obligation for an individual and businesses operating within the Australian borders to earn money legally. The Australian Taxation Office monitors and ensures tax compliance. Taxation is between July 1st and June 30th. Tax returns should be lodged on or before October 31. Filing a tax return enables you to report all income earned, and deductible expenses and to receive refunds where applicable.

Introduction

A tax return is a report presented to the ATO that explains income, tax deductions, and tax offsets that an individual earned for the financial year. It also helps one establish their final tax liability or refund. It applies to people who earn money, businesses, and other kinds of entities operating within Australia, with the deadline set at October 31 for filing. However, filing through a tax agent who has been registered in the country provides an extension over this date of lodging. Filings early present benefits such as quicker processing time and faster return of refunds which ensure a better tax process.

How to file tax returns in Australia?

The Australian tax return is due on 30 June every year. Any individual or company who has earned legally in the country has to file an Australian tax return. The tax return covers the financial year from 1st July of a year to 30 June of the following year. When you file your tax return, you declare all your earnings and claim for expenses that are allowed as deductions. Then you get your tax refund if any.

1. Preparation of your Tax Return 

• Information Gathering: This is one of the starting points. A collection of papers should be assembled, which helps prepare your tax return. To avoid missing vital information, this must be compiled and in proper order.
• Calculate Your Income: Then add up all the sources of income, including wages, salaries, dividends, rental income, and other earnings you've received. This will give you the total figure that you must report to ATO.

2. Claiming Deductions

• Allowances on Work-related Expenditure: You can claim a range of work-related expenses when you prepare your tax return. Make sure you have records or receipts to support these claims.
• Other Deductions: There are other deductions including charitable contributions, medical expenses, and interest paid on loans, among others. You will notice that these help reduce taxable income significantly, thus it is crucial to read through the whole list of deductible items available for a tax year.

3. Lodging Your Tax Return

• Online via myTax: The quickest and safest way to lodge your tax return is through the ATO's myTax service, lodged online. MyTax is simple to use and lets you securely submit your tax return.
• With a Tax Agent: If you prefer help or have complex tax matters, you can opt to lodge your return through a registered tax agent. A tax agent will make sure everything is filed correctly and on time so that there are no errors.
• Paper Return: You may still opt for a paper return; you simply mail this to the tax office. The drawback is that it takes longer to process than a direct computerized submission.

4. Getting Your Refund or Paying Any Tax Due

• Refund: In case the individual has overpaid tax within the year of return, s/he will have to receive that money back by the ATO directly in one's nominated account.
• Tax bill: These payments must reach the ATO within the agreed-upon time of submission so the client avoids penalties/interest.

5. Check the Status of Your Tax Return

• Track your return: You are able to track your tax return using online processes. The ATO provides self-help services that allow you to check for processing if your return has an update or when your refund should be released.

How do I File a Tax Return in Australia

• There are a few ways you can file your tax return in Australia. 
• One option is to do it online through myGov, which is a secure online platform where you can manage your tax details. 
• Another option is to complete a paper tax return and mail it to the Australian Taxation Office (ATO). 
• Lastly, you can also choose to file your tax return through a registered tax agent, who will handle the process for you and ensure everything is done correctly. Each option has its benefits, so you can choose the one that works best for you.

Declare your Income:

Most of the information about your earning is pre-filled, from the details provided by your employer and financial institution to the ATO.

Types of income included in the declaration:

• Employment Income.
• Government payments.
• Business Income.
• Super pension and annuities.
• Income from investments (interest, dividend, rent and capital gain).
• Compensation income.
• Insurance payments received etc.

Claim your Tax deduction:

You are eligible to claim deductions for a certain expense. These are called tax deductions as it reduces your taxable income.

Following are the various heads under which you can claim deductions.

1) Work Expenses: You claim some work-related expenses only if-

• Directly related to your earning income.
• Receipt and records to prove the payment.
• The expense incurred by you is not reimbursable.

Example – Vehicle and travel expenses, self–education expenses, clothing and tools, and equipment, etc.

2) Investment expense:

You may be entitled to claim the cost of earning interest, dividend or any iter investment income. For example- Interest charged on borrowings used for investment purposes, investing magazine subscription, investment property expenses, fees paid for investment advice etc.

3) Home and office expense:

It includes the cost of computers, phones or any other electronic device and operating costs such as internet costs. Only part of the expenses related to the work can be claimed.

Hire Us to Complete Your Tax Return in Minutes

Filing taxes can be overwhelming, but with Accounts Junction, the process becomes seamless and hassle-free. Our team of dedicated and qualified tax professionals is here to assist you in filing your Australian tax return efficiently and accurately.

How Can We Help?

• Hassle-free online tax return.
• Unable to find PAYG or Income statement? No issues we can find for you.
• 24 x 7 response from Qualified Meru tax experts over the phone, call and skype chat.
• Electronic ATO lodgement.
• Maximum Tax refund.
• Security of lodging your return via registered agent.
• An expert tax professional to deal with ATO issues.

Conclusion

An Australian tax return filing is crucial for being in compliance and being financially healthy. As an individual or business, making sure to correctly declare your income and claim the highest deductions will help make a real difference in your tax outcome.Accounts Junction has a dedicated and qualified team of tax professionals who can file your Australian tax return on behalf of you. Choosing Accounts Junction brings you professional tax services to make tax filing easy and worthwhile.

FAQs

1. Who needs to file a tax return in Australia?

• Anyone with a source of income in Australia-be it employed or self-employed-needs to submit a tax return to the ATO.

2. If I don't lodge by 31st October, what is the problem? 

• Missing that deadline means risking penalties, however, with lodged returns by the registered agent in Accounts Junction you may even obtain extra time in which to do so.

3. How can Accounts Junction assist with my tax return?

• Accounts Junction makes tax returns easy as we handle everything for you. We ensure the correctness of your return, maximize your deductions, and deal with the ATO if necessary.

4. Can Accounts Junction help me, even if I have lost my income statement (PAYG)?

• Yes! If you cannot find your income details, we can obtain them from the ATO for you so that your return will be completed.

5. How long does it take to get a tax refund?

• If you do an online application, the refund usually takes two weeks. You can relax, because filing through Accounts Junction makes the process smooth and efficient.