Lodging your tax return is a civic duty expected from every working Australian. However, for younger taxpayers – mostly those who are newly employed and are lodging their returns for the first time – it can be quite an intimidating experience.

Here, we present a how-to guide for getting your tax returns done, when you should lodge them, what you need to do, and how you should do it. If you need one for your business and tax advisory visit Cherry Black.

Filing for a Tax Return

When should you lodge your tax returns?

The Australian income year begins on 1st July and ends on 30th June. Taxpayers need to lodge their returns between 1st July and 31st October every year.

What do you need to put in your tax return documents?

When lodging or filing your tax return, you will need to do two things:

Declare all income earned within the relevant period. This includes wages earned, investment income, super annuities and pensions (supers), income from the sharing economy (earnings from Airbnb rentals, Uber, etc.), insurance, and other forms of taxable compensation. Note that, for Australians working overseas, any foreign income also needs to be declared when lodging your returns. If in doubt of anything, check with your employer, insurance agent or adjuster, or bank for clarifications on what you should declare on your returns; and

State claims for permissible tax deductions. You can claim deductions on certain work-related expenses provided that there is relevant documentation. These expenses include:

• * Vehicular or travel expenses, particularly if one is asked to work in different locations within or outside the country. Note that these expenses do not include the cost of one’s daily commute between home and work;
• * Educational expenses if one needs to take courses or classes for career advancement, including skill-related seminars and workshops
• * Clothing expenses for purchase and upkeep of company-issued or commissioned uniforms.

How do I lodge my tax returns?

There are three ways by which you can lodge your tax return:

Lodge it online via the myTax online facility on the myGov website. The online filing portal is the fastest way to lodge your returns, as much of the required information has already been pre-filled for you by your employer, bank, as well as any relevant government agencies, health funds, or insurance companies;

Fill up the forms manually and mail them to the Australian Tax Office (ATO.) This is the option of choice of freelancers and can be quite cumbersome as you need to fill the forms up individually. Claims stated in these forms are usually issued within 50 business days of lodgement;

Get a tax agent to do it for you. If you're short on time, a registered tax agent can take care of the paperwork and lodge your returns on your behalf. Your tax agent can also represent you in any consultations or transactions necessary with the Commissioner on Taxation. Click here

Conclusion

As much as possible, be sure to file or lodge your tax returns within the stated timeframe – but ensure that all information presented is accurate before doing so. To save time and money on paperwork, the recommended course of action is to either lodge your returns online through the myTax portal or to avail of the services of a registered tax agent. Click here for https://taxfyle.com/blog/turbotax-alternatives/.