For many Australians, lodging their tax return is simply par for the course, while others do it with clear expectations and with an understanding that this is a serious matter.
And it certainly is because in the end it is your return that will confirm whether you owe tax or get deductions.
Speaking of taxes, it is impressive how the thought of filing one’s tax return can bring in a sense of stress. Thankfully, almost everything is achievable with some form of assistance.
This blog outlines all the aspects of tax return in Australia that you may want to think about including but not limited to preparation, lodgment processes, and even deadlines.
Preparing Your Tax Return
Before you begin, you need to gather all the necessary documents and ensure that you meet the criteria for lodging a tax return.
For most people, this will include information about their income, any deductions they’re eligible to claim, and applicable offsets.
Here’s a breakdown of what’s involved in the preparation process:
- Income Information: This entails all income streams such as provided wage bill, age benefits and any side hustle income. Of importance is also the tax statement or payment summary the employer presents by the set 30th June deadline where the document should be tax ready.
- Deductions and Expenses: Here make sure to have all the documentation, e.g. receipts or statements for the particular expenses that you will be making a claim for, including but not limited to: work expenses, self-education, or donations made.
- Private Health Insurance: If you have covered yourself or your family with a private health insurance policy, then you are also required to get your insurance cover statement, as it will come in handy in calculating the Medicare levy and offsets if applicable.
The information in your tax return helps the Australian Tax Office (ATO) determine whether you’ve paid the correct amount of tax.
If you’ve overpaid, you may be eligible for a refund; if you’ve underpaid, you could receive a tax bill. Your tax return should cover the income year from 1 July to 30 June, and you must lodge it by 31 October unless you have engaged a registered tax agent, who can offer an extension.
Lodgement Options
In Australia, there are several ways to lodge your tax return. Each option has specific requirements and timelines, so it’s essential to choose the one that best suits your situation.
- Lodging Online with myTax: This method is ideal for those comfortable handling their own tax affairs. It’s quick, secure, and accessible through your myGov account linked to the ATO. The system will automatically pre-fill information such as income and interest, reducing the risk of errors.
- Using a Registered Tax Agent: If you prefer professional assistance, a registered tax agent can lodge the return on your behalf. Tax agents are the only individuals allowed to charge fees for tax services, and they generally have extended lodgment schedules, meaning you can submit after 31 October if you’ve engaged them before this date.
- Lodging by Paper: While this is the most traditional method, it’s also the slowest. Paper returns can take up to 10 weeks to process, so this option is best suited to those who are not in a rush to receive a refund.
It’s essential to remember that each lodgement method has specific timelines and processing times, as shown in the table above.
Important Deadlines
Timing is critical when it comes to lodging your tax return. Missing deadlines can lead to penalties or interest on overdue payments, so be aware of the following key dates:
- 31 October: If you’re lodging your tax return independently, it must be filed by this date each year. If 31 October falls on a weekend, the due date will roll over to the next business day.
- Registered Tax Agent Extension: Registered tax agents can generally submit returns on behalf of their clients after the 31 October deadline. However, you must engage with the agent by 31 October to be eligible for the extended lodgment period.
- 21 November: If you lodge your own tax return and it results in a tax bill, payment is due by 21 November. Late lodgment could incur interest charges from this date if any payment is outstanding.
Special Lodgment Circumstances
In addition to the standard options, the ATO provides specific guidelines for people with unique circumstances, such as first-time lodgers, those leaving Australia, and individuals residing outside Australia:
- Lodging for the First Time: If it’s your first time filing a tax return, ensure you’ve created a myGov account linked to the ATO if you plan to lodge online. For new lodgers, preparing in advance is essential; ensure you have all relevant documents on hand, as outlined above.
- Leaving Australia: If you’re permanently leaving Australia before the end of the financial year, you may be able to lodge a paper return early. The ATO can provide guidance on the specific steps to take in these cases.
- Lodging from Outside Australia: If you’re overseas, you can still lodge your return using myTax or by using a tax agent. It’s best to contact the ATO if you’re unsure about the best approach for your situation.
- Lodging a Prior Year Tax Return: If you missed filing a return in a previous year, you’ll need to complete and submit the overdue return separately. The ATO allows you to lodge returns for past years, although interest charges may apply on any outstanding payments.
- Non-Lodgment Advice: If you’re not required to lodge a tax return, you should still submit a non-lodgment advice to notify the ATO. This ensures that the ATO is aware of your status and prevents potential follow-up for an unfiled return.
After You Lodge
After You Lodge Once you’ve successfully lodged your tax return, you can expect the following:
- If you lodge online, your tax return will typically be processed within 2 weeks (10 business days).
- If you lodge by paper, the processing time can take up to 10 weeks (50 business days).
- You’ll receive a notice of assessment from the ATO, which will outline your final tax position, including any refunds or outstanding balances.
If you’re expecting a tax refund, it’s the quickest and easiest to have it deposited directly into your bank account.
Alternatively, if you have a tax bill, the ATO offers flexible payment options, including setting up a tailored payment plan.
Ready To Lodge Your Tax Return With Ease?
At Leading Tax Experts, we make lodging your tax return straightforward and stress-free. With our experienced team by your side, you can be confident that your tax return will be handled accurately and on time.
If you’re looking for expert support, guidance, or simply want to maximise your potential refund, reach out to us today. Let us take the complexity out of tax season, so you can focus on what matters most.
