Save
How do I prepare for a tax return?
When the financial year ends on 30 June of each year, the Australian Taxation Office (ATO) expects all Australian residents for tax purposes to lodge their tax returns and pay their taxes.
How do I prepare for a tax return?
When the financial year ends on 30 June of each year, the Australian Taxation Office (ATO) expects all Australian residents for tax purposes to lodge their tax returns and pay their taxes.
What do I need to prepare?
You need to prepare forms, documents and receipts to complete your tax return faster.
Income statements or summaries and invoices
All your income for the financial year should be declared.
This includes salary from full-time employment, freelance and side hustle income, as well as Centrelink and other government payments.
Fund, trust or portfolio statements
Your income or profits from investments may be taxable. Make sure to include information on dividends, distributions and interest income you received.
Buy and sell statements
If you purchased or sold capital assets within the financial year, you need to declare its purchase and selling price in order to compute for capital gains tax or capital loss.
Foreign income
You also need to declare any income you receive from foreign sources, regardless if the sources are investment assets or foreign government pension.
Rental property records
If you own a rental property, you need to prepare all documents that show your income and expenses derived from the property.
Accomplished tax form
Decide how you will lodge your tax return: online, paper or through an agent. Once decided, fill in the necessary information and lodge your tax return through your preferred means.
- Online lodgment
If you choose online lodgment, you need to create a myGov account and link it to the ATO. Then provide the required information and prove your identity by providing your tax file number.
Note that the ATO pre-fills the information on online forms by a certain date, which means all you need to do is review and confirm that the information is correct. Watch out for ATO announcements on when pre-filled forms will be available. - Paper tax return
If you want to lodge manually, you may download a copy of the most recent tax return for individuals form and fill in the required information.
Once you’re sure you’ve accomplished all the necessary forms, you may mail them to ATO and wait for advice on what to do next and whether you have tax payables. - Lodge with a tax agent
Alternatively, you may hire a registered tax agent to prepare and file your taxes on your behalf.
What can I claim?
You may claim offsets and deduction on eligible expenses. Some examples are:
Super contributions
Concessional and non-concessional superannuation contributions and spouse contributions are deductible as long as they fall within the contributions cap.
Work-related expenses
- vehicle and travel expenses for work-related duties
- laundry and dry cleaning expenses for specialised work-related clothing
- overtime meals
- tools and equipment for work use
- work-related self-education expenses (i.e. seminar fees) that were not reimbursed
Donations
Any monetary or property contributions or donations may be deducted as long as it was given to accredited deductible gift recipients and was given completely voluntarily.
For more information on ATO-allowed deductions, see “Legal ways to reduce tax payable”.
What happens if I owe the ATO money?
The ATO will review your tax return and determine if you have any tax payable for the year.
If the ATO determines that you owe them money, they Tax Office will contact you and inform you of the assessment and how much you need to pay.
You will be given enough time to make your payment.
What happens if I don't do a tax return?
Lodging your tax return is mandatory. If you forget or refuse to lodge your tax return for the income year, expect to receive communication from the ATO and a penalty for late lodgment.
If you think you don’t need to lodge a tax return due to low income, you still need to secure a non-lodgment advice form and submit it to the ATO. This form will ensure that the ATO knows you’re not simply evading your tax responsibility.
Explore nestegg for more information about taxes.
About the author
Join the nestegg community
We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians
Your email address will be shared with nestegg and subject to our Privacy Policy
About the author
Join The Nest Egg community
We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians
Your email address will be shared with nestegg and subject to our Privacy Policy
Last-minute items to check off before 30 June
Australia’s richest owe the Tax Office $772m
Do you have to pay taxes on a trust?
Government rebuffs regional allowance and tax concession reform
Penalties for tax fraud in Australia
Disaster relief payments receive tax-exempt status
Are your franking credits working?
What information to provide your accountant to do a tax return?
Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more
Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more
Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more
Tax saving
Government rebuffs regional allowance and tax concession reform
A review’s findings into the viability of area tax concessions and payments for regional and remote Australians has had its recommendations shut down by the same government who requested the report...Read more
Tax saving
Penalties for tax fraud in Australia
Public taxes are used to fund government projects in relation to health, defence, infrastructure and many other national and local projects that require public funding. ...Read more
Tax saving
Disaster relief payments receive tax-exempt status
The Australian government has made disaster relief payments to bushfire-affected individuals and businesses tax-exempt while extending tax-free financial support to NSW Rural Fire Service volunteers. ...Read more
Tax saving
Are your franking credits working?
Here’s what you need to know about franking credits and how they work. ...Read more
Tax saving
What information to provide your accountant to do a tax return?
Navigating tax laws can be confusing because of its complexities, but you may hire an accountant or tax agent to prepare your tax return on your behalf. ...Read more
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.