Individual Tax Return Booking

Understanding the Basics of Individual Tax Returns

When it comes to filing taxes in Australia, having a strong grasp of the basics is essential. Understanding who needs to file, what an individual tax return entails, and how the Australian Tax Office (ATO) assesses taxes are the first steps toward a successful filing experience.

What is an Individual Tax Return? 

An individual tax return is a form submitted to the tax authorities that reports your income, expenses, and other tax-related details. This annual filing allows the government to calculate how much tax you owe or the amount you may be eligible to receive as a refund. Whether you’re an employee, freelancer, or self-employed, understanding individual tax returns is crucial to staying compliant with tax laws and avoiding penalties. 

Who Needs to File an Individual Tax Return? 

A resident individual is required to file an income tax return where taxable income exceeds the tax-free threshold of AUD 18,200 (see the Taxes on personal income section for more information). A non-resident earning AUD 1 or more of Australian-sourced income must file a return. There is no joint assessment or joint filing in Australia.

The amount of tax payable to the Australian government depends on your income level and is calculated after applying any eligible tax deductions. Tax in Australia is based on a progressive rate, meaning the percentage of tax increases as your income rises. 

The table below outlines the personal income tax rates in Australia for the 2024/25 financial year, helping you determine your applicable tax rate based on your income bracket. 

Step-by-Step Guide to Filing Your Individual Tax Return

A smooth tax filing experience starts with careful preparation. Follow these essential steps to streamline the process and avoid common errors.

Gathering Necessary Documents and Information 

Before you begin filing your tax return, it’s essential to gather all the necessary documents. Having everything in order will not only make the process smoother but also ensure your income is reported accurately and that you claim all eligible deductions. To make things easier, here’s a comprehensive list of the key information you’ll need:

• Your PAYG payment summary from your employer
• Your Tax File Number (TFN)
• Your bank account details
• Details of any additional income from investments, freelance work, or other sources
• Information on interest earned from your bank accounts
• Your partner’s income details (if applicable)
• Medicare statements

According to ATO guide about work-related expenses, If you plan to claim more than 300 AUD , be prepared with additional documentation such as: 

• Copies of invoices or receipts, which can be paper or electronic
• Credit card statements
• Travel logbook
• Home office logbook

Our individual tax return checklist is comprehensive and detailed, providing all the necessary documents and information you need to file your tax return.

Download Our Tax Return Checklist

Maximising Your Deductions 

To reduce your taxable income, explore the deductions available to you. Eligible deductions may include:

• Motor Vehicle Expenses 
• Work related Travel Expenses
• Work related Uniform Expenses
• Work related Self-education Expenses
• Work related Expenses (telephone, union fees, tools and equipment, computer, subscriptions, printing, stationery, internet cost, sun protection and any other work related deductions incurred)
• Costs incurred if you received income from interest and/or dividends eg, interest paid
• Donations (where receipts were given for donations over )
• Last Year Tax Agent Fee
• Income Protection 

For those working from home, additional deductions may be available to help offset costs. You may be able to claim deductions for utilities, internet, office equipment, and even a portion of your rent. Ensure you meet the ATO’s requirements for home office deductions by maintaining a log of hours worked and keeping receipts for any work-related purchases.

Lodging Your Tax Returns 

You can lodge your tax return in several ways: online via myTax, through a registered tax agent, or by submitting paper forms. Choose the method that best suits you! 

You can file your tax return anytime after June 30, with the deadline on October 31. If you’re unsure about the process, the ATO offers resources like the ATO community, and you can also book an appointment with a tax agent for assistance. Tax agents may also help you secure an extension.

If filing on your own, you’ll need a myGov account linked to the ATO to use myTax. Ensure you declare expenses in the same financial year, don’t claim reimbursed expenses, and keep receipts as proof.

A final review of your tax return ensures accuracy and reduces the risk of filing errors. Double-check all entries, especially income figures and deductions, to verify that your information aligns with supporting documents.

Avoiding Common Mistakes When Filing Your Individual Tax Return 

Mistakes in your tax return can delay refunds or even trigger audits. Avoiding errors during the initial filing process saves time and potential penalties.

Common Filing Errors and How to Prevent Them 

When filing your tax return, there are several common mistakes that can lead to delays or penalties. Here are some of the most frequent errors and how to avoid them:

• Overlooking Deductions: Carefully review all possible deductions you can claim, including any receipts or invoices you have. Be aware of the ATO’s rules on deductible expenses. 

• Incorrect Income Reporting: Double-check all income sources, including salary, interest, investments, and other earnings. Keeping thorough records throughout the year will help ensure accuracy. 

• Miscalculated Expenses: Keep detailed records, including receipts, logbooks, and invoices, to substantiate your claims. For travel or work-related expenses, ensure you track the exact costs and, where necessary, apply the correct rates as outlined by the ATO.
• Failure to Include All Supporting Documents: Ensure that your supporting documents match the amounts reported in your return, and keep them organised in case the ATO requests them.
• Missing the Tax Filing Deadline: Set reminders ahead of time to ensure you lodge your return by the due date. If you’re unable to file on time, consider filing through a registered tax agent who can request an extension on your behalf.

What to Do if You Made a Mistake on Your Tax Return 

If you realise you’ve made an error after submitting your tax return, don’t panic. The ATO allows amendments, which can be made either online or through a tax agent. Acting quickly and accurately will help you avoid potential penalties.

Consult Your Tax Return With a Professional 

Now you’re across the admin bits, here’s what you need to know about booking the appointment:

1. Book an appointment: Jump on our website to secure your Tax Appointment – it’s a quick & simple process
2. Check out your email: Once you’ve booked your appointment, you’ll receive a confirmation email which will contain links to our Tax Return checklists (the same as above). Please take the time to review the checklists, as applicable to you, so you can prepare everything necessary prior to your appointment
3. Accept our Terms of Engagement: Please ensure you follow the link contained within your Appointment confirmation email to read and accept our terms. This is a MUST prior to your appointment
4. Email us your documents: Compile any relevant information and documents and email them through to our A-Team ([email protected]). We will then ensure everything is on your file ready for your return to be prepared. Please email through your documents at least two days prior to your appointment

Update us if any changes: Have a think about whether any of your personal details have changed. Notify us ASAP if you have moved home, have a new contact phone number or you’ve changed your bank account details. These are all important details which we need to keep up to date on our system and with the ATO

Reference:

• https://www.ato.gov.au/media-centre/more-than-1-billion-dollars-in-tax-refunds-paid