Individual Tax Return

Individual tax return means that all Australian TFN holders must lodge their tax return form after each financial year. This is because Australia uses a prepay tax system. You can receive a refund if you prepay too much, and thus you must also pay any extra if you prepay too little. There is a tax threshold of $18200, in parties this amount can be up to $20500. You have to pay tax when your income is over this amount, the principle is that you pay more once you earn more.

 

1: Tax time

You can lodge your tax return between 1/7 and 31/10. You have extended time till the following 15 of May if your previous year tax lodgement was done by a licensed registered tax agent.

 

2: Tax return preparation

Tax return preparation is that you have to prove your income and expenses related to your income.

2.1: Provide your income from PAYG Summary which is issued by your employer. Provide your investment income if you invest in the share market and bank interest. Provide your rental property income summary if you have one.

2.2: Provide all your expenses related to how you make your income. Australia tax system is a very complex system, and depending on what you do, ATO has very strict rule with the associated amount of expenses to deduct. This must be applied case by case. All deducted documents must be kept for five years, for future reference.

You can start to do your tax return after you prepared all income and expense documents. You have to bring your TFN, ID, Bank information if this is your first time coming to Hurstville Accountant. This is to help us set up your profile. Of course you do not need these if you are already Hurstville Accountant’s existing clients.

All Australian TFN holder has to lodge tax return on time, otherwise you might get a warning or penalty.

Australia tax residents have to pay tax no matter whether your income is from domestic or overseas.  Australian tax resident is defined as anyone who has a TFN, work permission, and has lived in Australia for over 183 days in the last financial year. The benefit of Australian tax resident is that you have tax threshold of $18200, Non-residents do not have this exemption.

 

3: Tax rates 2015–2026

The following rates for 2015–2026 apply from 1 July 2015.

Taxable income	Tax on this income
0 – $18,200	Nil
$18,201 – $45,000	16c for each $1 over $18,200
$45,001 – $135,000	$4,288 plus 30c for each $1 over $37,000
$135,001 – $190,000	$312,88plus 37c for each $1 over $80,000
$190,001 and over	$51,638 plus 45c for each $1 over $180,000

The above rates do not include the:

• Medicare levy of 2%

ATO have launched MyGov online form which is more 10 pages since 2014. It is the help tool to do your own tax return if you have no language problem and you often concern tax policy changes up to date. But why most people still seek for tax professional service?

 

1: Hurstville Accountant is a register tax agent which providing professional service, and they always have tax law up to date. Customers can get professional service and avoid most mistakes due to tax laws latest changes or common mistakes.

 

2: Hurstville Accountant provides efficiency service. General speaking, one tax accountant dealing 600 clients in average, they are all experienced. You might take more 2 hours to do your own tax return, but professionals might take 20 minutes to getting done existing client tax return with no mistakes.

 

3: We provide cost-effective service. You can deduct accounting fee for next financial year. For peoples who earn around $50K, you only paid 64% of amount of charge. Hurstville Accountant charge $132 for individual tax return, in fact you only pay $132*0.68 equal $90

 

4: If due do unexpected factors caused disputes for your case with ATO, register tax agency can act as your agent to dispute which ATO.

5: having your all tax question get answer. You might queuing long time to ask question with ATO, or spent a lot of time to get proper answer at internet, but you can get all question answer if you ask your tax account due tax return.

 

6: We do not promise to save your thousand dollars, but at Hurstville Accountant, we promise to use our professional update tax knowledge to protect your benefit.

FAQ for “Individual Tax Return in Australia”

What is an Individual Tax Return in Australia?

An Individual Tax Return is the annual tax report that individuals lodge with the Australian Taxation Office (ATO) to declare their income, claim deductions and offsets, report investments, and determine tax payable or refunds for a financial year (1 July to 30 June).

Who needs to lodge an Individual Tax Return in Australia?

Most Australian residents for tax purposes who earn income must lodge a tax return. This includes employees, contractors, sole traders, investors with rental or dividend income, and people with foreign income. Some low-income earners or pensioners may still need to lodge depending on ATO requirements.

When is the Individual Tax Return due?

• Self-lodged taxpayers: normally due by 31 October after the end of the financial year.
• Using a registered tax agent: later deadlines may apply when the individual is registered with a tax agent before the deadline. Normally it’s due 15/05 second year.

Filing through a tax agent often extends the lodgement deadline.

What income must be declared in the tax return?

You must report all assessable income including:

• Salary and wages
• Business or freelance income
• Rental income
• Interest and dividends
• Capital gains from asset sales
• Foreign income (if you are an Australian tax resident)

What deductions can I claim in my tax return?

Common tax deductions include:

• Work-related expenses (tools, travel, uniforms, self-education)
• Home office expenses
• Investment property expenses
• Donations to registered charities
• Accounting and tax agent fees

Deductions must be supported by receipts and meet ATO eligibility rules.

Can I get a refund from lodging an Individual Tax Return?

Yes. If the tax you paid during the year (through withholding or instalments) exceeds your total tax liability, the ATO will issue a refund. Many taxpayers receive refunds when deductions and offsets reduce their taxable income.

What documents are required to complete a tax return?

Typical documents include:

• Payment summaries / income statements (PAYG summaries). It can be found at ATO portal.
• Bank interest and dividend statements
• Rental property expense records
• Business income and expense records
• Private health insurance statement
• Receipts for deductions and tax agent fees

Can a tax agent help with my tax return?

Yes. A registered tax agent can:

• Prepare and lodge your tax return
• Advise on deductible claims and tax planning
• Ensure compliance with current ATO rules
• Help reduce errors and audit risk

Using a tax agent often provides access to extended lodgement deadlines.