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
|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.