Your tax time 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. Read on to get some answers to common questions that pop up when you’re completing your annual tax return.

Do I need to do a tax return? 

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.

According to the Australian Taxation Office (ATO), if you’re an Australian resident and your taxable income was more than the tax-free threshold 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. 

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.

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 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 within your online account.

Been squirrelling 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. Head here to learn more about finding these records with ME Bank and how to calculate the amount of interest you’ve earned.

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 rental income from any investment properties you own.

How do I lodge a 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.

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 tax return. If you have the budget to pay for an accountant, you may find that it’s worthwhile (especially if they find deductions and offsets you didn’t know you could claim).

If you feel like taking on tax time solo this year, the ME Go app makes finding tax deductible transactions and interest earned really simple, head to our website for more information.  

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:  
 

• Give some money to a registered charity and keep your receipt to claim a charitable donation tax deduction.
• 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.
• Make a personal super contribution 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.
• Engage an accountant to manage your tax affairs, then claim the cost on next year’s tax return.  
• 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 work from home, then you’ll probably want to claim some home office tax deductions. 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.

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.

Thrifty tax 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, we have accounts that are simple, fair and transparent. The way that banking should be. Find out more today.

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Disclaimer:
 
All information in this blog is of a general nature only and has been prepared without taking account of your objectives, financial situation or needs. You should consider the appropriateness of any advice before acting on it. It may or may not be correct, depending on individual circumstances. You should not rely on this information as being correct for you, and you should obtain your own legal, financial and taxation advice as appropriate