Dealing with tax return can be quite the chore. Depending on your personal circumstances, lodging your return could be a straightforward but tedious couple hours of work, but it could also be a Byzantine morass of ambiguity and errors. Regardless, they are a necessary aspect of managing your finances, as failure to correctly lodge your tax return can result in stiff penalties. While taxation is in general a roughly similar practice from country to country, specific details and regulations will, of course, vary; thus, in unpacking the concept of tax return, this article will give an overview of tax return in one specific country i.e. Australia.
What is a Tax Return?
A tax return is a tax form that taxpayers must submit annually to the governmental department which deals with the collection of taxes. In Australia’s case, this would be the Australian Tax Office (ATO).
What should be included on a Tax Return?
On this document, taxpayers must declare the assessable income they’ve earned through the year. This assessable income includes employment income, investment income, foreign income, etc (Refer to ATO for more specific details). Taxpayers should also include the amount of tax deductions they may have on their tax return form. Correctly recording the tax deductions that you wish to claim will ensure that the portion of your income that can be taxed will be reduced. Thus, this will save you money. The expenses that you can claim as tax deductions are generally work-related. For example, if you have personally paid for work travel, occupation-specific clothing, home office devices, work-related self education, etc (Again, refer to ATO for more specific details). To claim these deductions, it is advisable to keep written evidence of your expenses in the form of receipts or tax invoices.
What happens after you submit your Tax Return?
From this, the ATO can calculate the amount of tax that the taxpayer needs to pay. This will be assessed against the amount of tax that your employer has deducted from your income on your behalf. Lodging your … Read the rest
Tax returns by most of Australian’s population are required to be filed yearly. Tax return Australia must include your taxable income for the entire year. In case you have paid more taxes associated to what you are supposed to then you’re entitled to get a refund of this extra amount. If the is that you have paid short of the amount you must pay then you are thought to pay for the shortage amount. For this purpose you must have all the required documents.
You will get back your tax return as earlier as you submit the application. Last date for lodging your own tax return Sydney is 31st October if you are an authorized tax agent. In other way if you are registered tax agent then you will have the special prerogative to lodge your own individual tax return at a later time.
How to start this procedure?
You must have all the required details with you. Such as if you want to claim deductions related to work that are beyond $300 then the statement in white and black should be present. On the other hand if it is less than that amount then there is no need for any receipt. But there would be a need of a proof that these deductions relate to your income. You can proof it by showing/presenting warranty documents, credit card statements, PAYG, invoices or electronic files. See more info here.
Some more required necessary information:
It must also include Pay As You Go, repayment reports and abstracts for the financial year. Besides it must also include friend’s benefits and termination payments for the year.
All types of investments:
Investments may include sale or purchase receipts from any capital gain, rental income from any type of property, yearly tax summary planned for funds or trusts and dividends compensated for shareholdings.
Centre link pensions:
- Sometimes you receive income from abroad and for this type of income you must have bank statement.
- The other element that is included in it is
The federal budget of 2008-2009 announced Educational Tax Refund in Australia. In Australia families can claim tax refund for their children up to 50% for eligible education expenses. Its equal to the amount $750 for primary school children and $ 1500 for secondary school children. The mentioned amount can give tax offset of $375 and $750 respectively. Now its not any burden for the parents to bear the children education expenses. But they must be well aware of these schemes. Moreover some other expenses related to desktop computers, laptops, and textbooks, different education software and trade tools are allowable as well. Therefore you must keep the record of all such receipts so that you may claim later on.
Eligibility for ETR:
Those families that meet the income test are allowed to receive payments from Family Assistance Office. This is an additional tax benefit which is given by FAO. Here we are not going to discuss in detail the procedure and rules regarding to qualifying for FTB Part A. But here we are going to discuss it shortly for getting a little bit knowledge of it. Those families will receive this tax benefit whose income is less than a certain amount. During the year 2008-2009 this limit was imposed. According to this limit those families that earn $98514 and have less than 18 dependents are allowed to receive tax return. Besides if the income is $ 99962 and the dependents are more than 18 then again the tax benefit will be given to them. $ 3796 is another limit for each additional child in the family. In short if the family income is less than the above mentioned limit then you are not eligible for FTB part A and ETR.
Some Allowable Expenses:
Some expenses are allowable that you can claim by Federal government in Australia. But there are also so many other expenses that are not allowable. Let we discuss such expenses in brief.
Allowable expenses may include all those expenses that support a child during primary and … Read the rest
If you want to maximize your tax refund then keep the following five tips in your mind:
Claim all the deductions:
You can increase your tax return by claiming all those expenses that you are entitled to claim legally. Keep the receipt of all those expenses that you are required to pay regarding your work. Sometimes you get confused because you have no idea about the fact that which types of expenses are claimable or not. But here you are advised to keep all the receipts because your e-tax software will guide you in a better way for all the claimable expenses for tax return.
Keep accurate record:
If you are not going to keep a proper record of all the expenses then there are chances that you will not be in a position to claim maximum tax refund. So prepare yourself properly. Those people who never get money at tax time are the ones that are not well organized. Those who don’t fill in car logbooks and keep the right track of receipts are also included in this category.
For maximum tax claim we advise you that spend at least 5 minutes a week just to organize your logbooks and receipts. Besides you can also use an app e-tax to keep the daily record of all the receipts.
Consult a professional accountant:
There are several advantages of getting the professional services of an accountant in Australia for the purpose of more tax return. The professional accountant in Australia would be in a better position to maintain the accuracy. You will save your time and efforts. Without any stress you are calculations would be done by a professional without any error. Another advantage is that fee paid to professional will also be deductible. Moreover he will also find more ways to increase your tax return. More details here!
Small stuff is also important:
Sometimes we think that small donations of $5 and some other expenses of $ 10 are not important. Therefore you don’t keep the receipts or evidence … Read the rest
One must know the 2 major things about tax return Australia.
- Those individuals who are somewhat involved in the repayment.
- The choice of repayment process
Being a citizen you must have in-depth knowledge about your all responsibilities. So that you may know your rights, benefits and responsibilities. This all will make you law abiding citizen of Australia. In Urban towns usually the people get a lot of benefits. For this reason and for equality purpose, all the people never get the exact same amount of tax refund. As an initial place the occupation and employment status of the citizens would be considered. So you must be certain to get what you have after understanding your liabilities.
The individuals involved:
Both people working at home as well as in private organizations are eligible to claim for tax returns. Here to be more precise, those all things which consist the claim would determine the relationship status of persons than the employment and all general liabilities. Those individuals who are doing their business/job privately can claim for holiday cost, educational expenses and car expenses. Conversely those individuals who are indulged in home based jobs can claim for the internet, electricity and phone bills. Besides they are also allowed to claim other shared expenses that they think can be added for tax return purpose. Whether it’s a home based job or private, you are liable of a claim if your age is above 18 years. If you are not meeting the standards of your government then definitely you cannot be entitled for this.
Choices for the payment process:
Usually there is one option to make all the important settlements and that way is having a direct visit to the government main office. If the case is like this then the person should maintain a direct contact with the officer who is in charge and able to settle all the relevant transactions for you. In earlier days it was very difficult to go through from the whole procedure. But the online system and computers … Read the rest