If you work and earn an income in Australia, you will be required to submit a tax return every year. This doesn’t have to be a stressful experience as long as you stick to the deadlines and get everything in on time.
Who has to lodge a tax return?
You must lodge an income tax return if any of these situations apply to you:
- you are a resident of Australia and your taxable income was above the tax-free threshold
- you are a foreign resident of Australia and you earned more than $1 during the financial year
- tax was deducted from wages paid to you during the financial year
- you are exiting Australia for more than one financial year
- you wish to claim any additional tax deductions.
October 31 is an important date.
The year ends officially on June 30th. It starts July 1st and ends June 30th. An important financial date to remember is October 31st. This is your tax return due date for the year prior. You have the option of lodging your individual income tax return with your personal accountant or through one of the online tax return services. If you use an accountant you may be able to extend the deadline to May 15, depending on your personal circumstances.
What information will I need to bring with me?
- PAYG Payment Summaries
- Payment Summaries from a Disability Pension
- Eligible termination payments
- Any interest earned from bank accounts
- Share dividend statements
- Money made from Uber, AirBnB, or Stayz.com
- Money from sales on eBay or other websites
- Any cash payments you received
- Payments from managed property investments
- Income and expenses from investment properties
Not eligible if you owe money from previous years.
However, something to remember, is that in order to take advantage of the extension of time to lodge with your accountant, you cannot use this option if you have outstanding tax returns that were not filed from previous years. Also if you owe any tax to the ATO, you will not be offered this option.
Business owners have various tax deadlines that you should be aware of. Sign up for our newsletter to stay on top of tax deadlines and more.
What happens if I miss the deadline?
If you miss the tax return due date because you were out of the country, or you lodged it but it was never received by the Australian Taxation Office (ATO), Individual tax payers may be liable for a late penalty of $222 for every 28 days after the due date has passed, up to a maximum of $1,110 plus interest for individual tax returns. It is crucial that you deal with this issue by contacting the ATO immediately to avoid further penalties.
If you have a valid reason for missing the deadline and documentation to back up your claim such as a doctor’s note, proof of hospitalization, or etc, they may help to reduce or minimize the penalty against you. And you can’t use the extension, even with a tax agent, if you owe for a previous year, so it is vital that you get this cleared up as soon as possible. It’s okay if you don’t have all the information pertaining to your income or business deductions from previous years. A tax agent can look up information already in the ATO database and advise you on what types of deductions you can claim.
Tax preparation can be confusing and scary sometimes, but do not worry, we’re here to help you get this problem resolved quickly and efficiently. Our expert tax consultants are experienced and will help you get the maximum tax refund possible .
The information presented on this website is general and does not take into account personal circumstances that may affect the outcome.