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 2015–16

The following rates for 2015–16 apply from 1 July 2015.

Taxable income	Tax on this income
0 – $18,200	Nil
$18,201 – $37,000	19c for each $1 over $18,200
$37,001 – $80,000	$3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000	$17,547 plus 37c for each $1 over $80,000
$180,001 and over	$54,547 plus 45c for each $1 over $180,000

The above rates do not include the:

• Medicare levy of 2%
• Temporary Budget Repair Levy; this levy is payable at a rate of 2% for taxable incomes over $180,000.

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 $75 for individual tax return, in fact you only pay $75*0.64 equal $48.

 

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.