Whether you just started your first job or have recently arrived in Australia and are now working, you will need to start thinking out lodging your tax return for each financial year that you work or earn money.
When do you need to lodge a tax return?
Lodging your first tax return seem a bit daunting, but it doesn’t need to be. Profacc Public Accountants are here to help.
You will need to lodge a tax return if:
- your total assessable income exceeds $18,200 which is the tax-free threshold for the income year (although please note that unless it is extended again, or there is some other low-income rate adjustment, the effective low-income tax-free threshold for 2022-23 will revert back to the previous (less generous) level of $21,885)
- you are a taxpayer who last year paid Pay As You Go Instalment Tax irrespective of income
- you are an individual carrying on business regardless of income or loss
- you are a resident taxpayer earning less than $18,200 who’s had tax withheld from that income
- you are a taxpayer who’s been asked to submit a return by the Commissioner
Your tax return must be lodged between 1st July and 31st October of each eligible year.
Extensions can be considered, but you will need to speak to a registered tax agent to apply for an extension.
What deductions can you claim in your tax return?
Depending on your job, and the contract you signed before starting that job (if you have one), you may be entitled to claim some work expenses.
If you have been forced to work from home during the COVID-19 lockdown restrictions, you may also be entitled to claim work from home expenses.
You can check out our Tax Return tips here.
What happens next?
After you lodge your tax return, the ATO assesses all the information and checks against their records.
You can check the progress of your tax return at any time. The quickest and easiest way to check the progress of your tax return is by using the ATO’s self-help services. Online returns process in 2 weeks (14 days) while paper takes up to 10 weeks (50 business days).
You can check the progress:
Once your tax return is processed, you’ll receive a notice of assessment that will show:
- tax you owe on your taxable income
- credit you have for tax already paid during the income year
- tax amounts you need to pay or will receive as a refund.
Although most tax returns lodged online will be processed in 2 weeks, some tax returns may take longer to process, for example if your tax return requires manual checks.
What happens if you miss the due date
Even if you miss the due date, it is important to lodge as soon as you can.
If you are owed a tax refund, you’ll want to get that money as soon as you can, then you can choose how to spend or invest it.
And if you expect a tax bill, don't delay lodging. Interest will apply to any amount you owe after the due date (which is usually late November each year)
If you're finding it hard to pay on time, you can request help with paying such as a payment plan.
Look for help in the right places
Why should you get us to do your tax return?
It will save you lots of time and stress as we are up to date with ATO Rules and Policies, we will ensure that your tax return is lodged in compliance with the latest ATO requirements.
We can also put all the confusing financial jargon into words you can easily understand and keep you and your business safe and legal.
We can also help you organise your financial systems to make tax-time more efficient next year.
Profacc Accountants can help you manage your business accounts as well as your personal wealth. Contact us today. Let us guide you through the process by letting you know what expenses you can claim, which allowances you may be eligible for and how to optimise your tax return.