Tax Return FAQ
What do I need for a tax return?
- PAYG Payment Summaries (Group Certificates)
- Bank Interest Details
- Payment Summaries from Centrelink
- Superannuation Lump Sum Statements
- Superannuation Income Stream Statements
- Dividends Statements
- Share Transaction Statements
- Partnership & Trust Distributions
- Managed Fund Statements
- Capital Gains Details – Investment Property Sales, etc
- Foreign Sourced Income and Pensions
- Sole Trader (ABN) Income Details
- Investment Property Income Details
- Motor Vehicle Expenses
- Travel Expenses
- Compulsory Uniform, Protective Clothing, Occupation Specific Clothing, Dry Cleaning
- Self-Education Expenses
- Other Work Related Expenses
- Asset Purchase Details – Computer, Tools, Equipment, etc
- Investment Related Expenses
- Donations to Charity Organisations
- Cost of Tax Affairs
- Income Protection Insurance Premiums
- Superannuation Contribution If Self Employed
- Medical Expenses
- Private Health Insurance Statement
I have not received all of my PAYG payment summaries (group certificates) yet. Can I lodge a tax return without them?
Tax Return lodgement is required by the law regardless of it. To lodge a tax return, you need to declare all of your employment income. The first thing you need to do is contacting your employers or ex-employers. However, in case you cannot receive, we can often obtain your PAYG payment summaries from ATO. If it is still difficult, we can work with you.
I did not earn a large amount of bank interest. I can say that it was about $5. Do I need to include in my tax return? How can I check the exact amount?
Yes. You must declare bank interest income even if it is $1. You can acquire the amount by contacting your bank or checking internet banking if you use it.
Can I receive a tax refund equivalent to full amount of deductions?
No. Deductions only reduce your taxable income. Your tax amount equals taxable income times tax rate. Thus, a tax refund increases (or tax liability reduces) by the amount equivalent to an amount of deductions times tax rate.
My refund is not much. Why is that?
Refund is neither bonus nor government subsidy. It is only the difference between tax liability on taxable income and total amount of total tax prepayments (tax withheld). Where total amount of your tax withheld exceeds tax liability on your taxable income, you can get a refund. This difference is a refund as tax is overpaid from your wage. To increase refund, tax liability needs to be reduced. To reduce tax liability, work related deduction can help reduce taxable income. More refund means you received less net amount of weekly or fortnight wage as less tax was withheld. In contrast, less refund means you received more net amount of weekly or fortnight wage as more tax was withheld.
How long do I have to keep my tax records?
Australian taxation law requires that you must retain your records for at least 5 years from 31st October or lodgement date, whichever earlier.
Can I claim expenses that used for both work and personal use?
Yes. You can claim for items that have both work and personal use as long as the item in question represents a deduction type that is normally allowable. You need to estimate work related percentage reasonably and exclude the amount of private use.
I quitted my job and have no intention to work in this financial year. Can I lodge a tax return now?
No. Even if you do not work anymore in this financial year, you need to wait for 1st July. However, in case you left or are leaving Australia permanently, you can lodge an early tax return before 1st July.
When is due date of a tax return?
You must lodge your tax return by 31st October each year. However, in case you are our existing client, an extension can be requested to ATO. You are never too late to lodge overdue or late tax returns. It is recommended that you lodge outstanding tax returns asap to avoid ATO fines.
I am likely to pay tax rather than receive refund. Should I lodge a tax return?
Yes, you need to lodge a tax return regardless of an amount of your refund or payment.
I am leaving Australia prior to 30th June. Can I lodge a tax return before 1st July?
Yes. In case you have left or are leaving Australia permanently (not coming back and working within at least 2 years), you can lodge your tax return early. For example, your visa expired and you went back to your country. However you need all of PAYG payment summaries (group certificates) or equivalents as well as bank interest details.
My ex-employers would not provide my PAYG payment summaries (group certificates) early. How can I lodge my early tax return?
The first thing you need to do is contacting your ex-employer. In case you still cannot obtain, you may use your last payslip to apply for your early tax return. However your last payslip must include the following details.
- Your Name
- Y.T.D Gross Income
- Y.T.D Tax Withheld
- Employer’s Name
- Employer’s ABN
- Payment Date
I heard that I do not need to pay Medicare levy if I am covered by a private hospital insurance. Is it correct?
No. Generally speaking, in case you are covered by private hospital insurance, you may be exempt from Medicare levy surcharge but not Medicare levy.
Is it correct that I do not have to pay Medicare levy if I am not Australian?
Generally speaking, it is correct. If you live in Australia, but are not eligible for Medicare during all, or part of, any financial year, you can claim an exemption from paying the levy. To claim the exemption on your tax return, you must apply for a Medicare levy exemption certificate. You may not be eligible for the exemption if you: -hold a permanent resident visa or have applied for a permanent resident visa -were a resident of the United Kingdom, the Republic of Ireland, Italy, Malta, Sweden, the Netherlands, Finland, Belgium, New Zealand, Norway or Slovenia before entering Australia maintain a dependant or another person who was eligible for Medicare -are an Australian citizen living overseas for less than five years We can prepare a Medicare levy exemption certificate. Extra $33 applies.