Tax return tips: your tax return questions answered.

Tax time might not be your favourite time of year, but the process of lodging your tax return doesn’t need to be a stressful experience. By knowing what you can claim, understanding thresholds and filing your receipts and pay slips along the way, you can have a very happy EOFY.

Read on to get some answers to common questions that pop up when you’re completing your annual tax return for this end of financial year. 

What we’ll cover here:

• The Australian financial year key dates.

• Do I need to do a tax return?

• Your Tax File Number (TFN)

• How to lodge your tax return.

• What can I claim as a tax deduction?

• What records do I need to keep?

• Should I do my own taxes or hire an accountant?

• Thrifty Tax tips.

The Australian financial year key dates.

When is the end of financial year? 

The end of financial year (EOFY) in Australia is 30 June and the new financial year commences on 1 July. This leads on nicely to a very common question…

When can I do my tax return? 

You can lodge your individual tax return at the commencement of the new financial year (1 July). You then have until 31 October to either lodge it yourself or engage with a registered tax agent to help you.

Is the end of financial year always the same date?

For individuals, yes. The financial year, the time for you to do your individual tax return is always at the start of July. However, for many businesses, the fiscal year is different. Businesses may choose to run on a different financial year to be more in line with their particular business practices.

Do I need to lodge a tax return?

Who does and doesn’t need to complete a tax return is influenced by many different factors.

Who does and doesn’t need to complete a tax return is influenced by many different factors. But generally, if you had tax withheld from your wages (or other payments) during the financial year, then you’ll probably need to lodge a tax return. In other words, if you have paid any form of income tax, then you’ll most likely need to do your tax return.

According to the Australian Taxation Office (ATO), if you’re an Australian resident and your taxable income was more than the tax-free threshold in Australia (of $18,200), then you’ll need to lodge a tax return. If you’re a foreign resident and you earned more than $1 in Australia during the income year, then you’ll also need to complete a tax return. 

Above the tax-free threshold the rate of tax you pay is based on a tiered scale, meaning the more you earn, the higher the marginal rate of tax you pay. Along with tax, the 2 per cent Medicare levy is also deducted from your pay.

If you’re a bit confused, the ATO has a handy tool to help you work out if you need to lodge a tax return. Use this form or log in to your myGov account to see if you need to lodge a tax return.

Your Tax File Number (TFN).

What’s a tax file number?

A tax file number or TFN, is your personal 9-digit reference number that’s required so you can pay tax to the Australian Tax Office (ATO) and set up a superannuation account.

What is a tax file number used for?

The main purpose of your TFN is to allow the ATO to identify you and make sure you’re paying the right taxes, pay as you go (PAYG) withholding and superannuation. When you start a new job, your employer will ask for your Tax File Number to work out how much tax to withhold from your pay.

How to get a TFN?

The Tax Office provides details of how to apply for a TFN. Make a note of your TFN as it will stay with you for life. Without a TFN you could pay more tax than necessary and be unable to access any government benefits you may be entitled to.

How to lodge your tax return.

What information do I need to lodge a tax return?

Generally, you’ll need these two basic pieces of information to start the tax return lodgement process:

1. Your nine-digit Tax File Number (TFN) that identifies you in the tax system. If you’re running a small business or side hustle, you’ll also need your 11-digit Australian Business Number (ABN).

2. Your latest Income Statement (also known as a Group Certificate) from your employer/s.

There are a few other bits and pieces that are worth gathering before you start too. These include:

• Any payment summaries from Centrelink.

• Receipts or statements for the expenses you are claiming as deductions.

• Your spouse’s income.

• Private health insurance information.

If you’re registered with myGov and have linked your account to access ATO services, then you should be able to find your Income Statement and TFN in your online account.

Been squirreling away extra cash in a bank account, term deposit or online savings account? You’ll also need to look at your bank statements to calculate any interest earned on your savings. Calculating the amount of interest you’ve earned over the year is also a great way to see the benefits of saving in action.

Beyond the basics, you may also need some other documents, such as a private health insurance statement, a list of your share trading transactions and records containing income from any other investments (such as properties) you own.

How do I lodge my tax return?

Once you have all the essential information and documents ready, you can lodge a tax return yourself online via the ATO myTax portal from 1 July to 31 October. You can also choose to engage an accountant to lodge your tax return on your behalf.

If you choose to lodge it yourself, you’ll need to fill out your tax return online entering your income information, gross income then adding in your tax deductions. More on these below. Once complete, you just need to submit the online form in the myTax portal.

What can I claim as a tax deduction?

Depending on the sector you work in and your circumstances, there are a range of industry-specific deductions you can potentially claim. Covering everyone from paramedics to pilots, the ATO has deduction guides for many different occupations. 

Regardless of your occupation, there are some tax deductions that are general in nature. Here are some common tax claims for you to consider before the end of the financial year:

Charity donations.

Give money to a registered charity and keep your receipt to claim a charitable donation tax deduction.

Work clothing. 

Unfortunately, this doesn’t apply to everyone – you can’t claim a year’s worth of ASOS orders. But if you’re required to wear specific work clothing or a uniform, keep your receipts to claim the cost of protective clothing and equipment (such as goggles, earplugs and face masks) that you need for your job but aren’t provided by your employer. You could also claim dry-cleaning and the costs of washing, drying and ironing too.

Work travel expenses. 

If you use your car for work purposes, this one’s for you. Petrol, insurance, registration and even road tolls can be claimed as an auto expense deduction. In fact, you don’t need to own a car to take advantage of this deduction – Ubers, taxis and public transport can also be claimed. But before you think you’ve hit the jackpot, travel expenses must be incurred while performing your job. If work has paid for your car or other travel-related expenses, then they are not a tax deduction. 

Other work-related expenses. 

Depending on the industry you work in, you could claim tools, laptops, courses, books and even museum visits – anything you need that helps you do your job. If you have a side hustle or run your own freelance show, there are many sole trader tax benefits which the ATO provides guidance on.

Super contributions. 

Make a personal contribution to your superannuation to claim the amount on your tax return. Be sure to lodge a Notice of Intent form with your superannuation fund beforehand and make your contribution before the cut-off date.                   

• Concessional contributions: Also known as before-tax contributions, these are funds that go into your super account from your pre-tax income. You can contribute a maximum amount of $25,000.

• Non-concessional super contributions: These are payments you manually put into your super account from your savings or taxed income.

Accountant fees.

Engage an accountant to manage your tax affairs, then claim the cost on next year’s tax return. If you’re a sole trader or small business owner, you can likely claim a tax deduction for legal expenses too, as long as the legal fees are directly related to your business (think: hiring lawyers to draft contracts or protect your intellectual property).

Losses on investments.

Is home loan interest tax deductible? One of the big perks of investing in property is that you can claim the interest charged on the home loan – or a portion of the interest – as a deduction. But it doesn’t stop there. From real estate management fees to council and water rates, you can claim a whole range of costs. See the full list of property investment tax deductions here.

Union fees.

If you’re a member of a union, don’t forget that your union fees are tax deductible too. 

What are some working-from-home tax deductions?

If you have a home office, then you’ll probably want to claim some tax deductions for working from home. But before you start including tax-deductible expenses in your return, you’ll need to make sure that you’re eligible to claim working-from-home expenses. This handy guide will help you determine if you can claim home office expenses and the appropriate method to use to calculate your claim and avoid simple tax deduction mistakes. 

So, what can you claim? Depending on your circumstances, you may be able to claim a portion of your electricity, gas, internet and mobile phone costs, as well as printer ink, stationery and cleaning costs (if you have your own dedicated office space at home). You may also be able to claim depreciation on items used to carry out your work, such as a laptop or ergonomic chair.

What records do I need to keep?

If you’re wondering, ‘What can I claim on tax without receipts?’ then you might be pleased to know that according to the ATO, deductions under $300 don’t require substantiation. You will need to provide receipts for any deductions above this total amount, so be sure to keep digital or paper receipts somewhere safe for five years after you lodge your tax return, regardless of how big or small the purchase was.  

Should I do my own taxes or hire an accountant?

If your tax matters are relatively straightforward, you may want to save money by lodging your tax return yourself for free on the ATO website. People with more complex tax affairs (such as investors and small business owners) often pay an accountant to lodge their return. If you have specific questions about more complex issues like self-managed super funds, salary sacrifice on a tax return, the tax treatment of dividends and the potential implications of unrealised capital gains tax, then engaging an accountant could be a wise idea.

Feel like taking on your tax return solo this year? The ME Go app makes finding tax deductible transactions and interest earned really simple.

Got any thrifty tax return tips?

Doing your tax return doesn’t necessarily need to hit your hip pocket. There are plenty of free services you can access to help make tax time a little less stressful. Here are a few ways to make your tax return lodgement easier, without costing you a cent:

• Use the ATO’s free myDeductions app to keep track of your records and store your receipts digitally.

• If you have the ME Go app, you can use the activity search bar on your account screen to find any transactions from the previous financial year when looking for deductions. 

• If you’re an employee earning $60,000 or less per annum, you may be able to access the free ATO Tax Help program, which provides accredited volunteers to help people lodge their tax returns online.

• Stumped by a curly question while completing your tax return? Access the ATO’s live chat service to get your question answered in real time.

• Looking to calculate any interest earned in the financial year? Head here for more information on how you can do this with ME.

Tax time is easier with ME.

Whatever your needs are this tax return season, we’re here to help. Check out our support page on gathering everything for your end of financial year.