Tax Return

Hi, this is TK Accounting Firm.
We would like to provide you with some important information regarding the Tax Return process in Australia.
Australia’s financial year ends on June 30th each year, and a new financial year begins on July 1st.
Therefore, individual taxpayers can lodge their tax returns from July 1st to October 31st. If you go through a registered tax agent, the deadline is extended to May 15th of the following year.

1. What is a Tax Return?
A tax return is not just a refund process—it’s a declaration of your income and the calculation of the tax you owe based on that income.

• If you’ve underpaid, you’ll need to pay the difference.
• If you’ve overpaid, you will receive a refund.

2. How much will I get from my Tax Return?
The exact refund amount cannot be calculated easily because it depends on various factors such as:

• Deductible expenses
• Tax offsets (credits)

Especially for holders of subclass 457 or Working Holiday Visas, you are not subject to the Medicare Levy (2.0% of income), which often results in greater tax benefits. Refund amounts can vary slightly between accountants depending on how carefully deductible expenses and tax benefits are applied. However, overstating deductions is risky and not advisable—it can bring serious legal consequences.

3. What are the tax rates in Australia?
Australia’s individual income tax rates range from 0% to 45%.
For detailed information, please refer to the Australian Taxation Office’s website: Tax rates – Australian resident | Australian Taxation Office

4. How long does it take to receive the refund?
If you lodge through a tax agent, the refund is typically processed within 1 to 2 weeks.
Refunds can be received either by cheque or direct bank deposit.

5. What do I need to prepare for a Tax Return?
• Income Details
If you’re an employee, your employer must provide a PAYG Payment Summary by July 14. While it’s possible to lodge using your final payslip, the figures are sometimes inaccurate.
If you have other sources of income—such as:

• Rental income
• Stock trading profits
• Crypto trading profits
• Bank interest
• Business income (ABN)
• Government allowances

These must also be reported.

• Receipts for Deductions & Tax Offsets
Deductible items vary depending on your occupation. Check the ATO website for job-specific deduction guidelines. Common deductions include:

• Work-related car expenses
• Travel expenses: airfare, accommodation (commuting generally not deductible)
• Uniforms, work shoes, laundry (including self-laundry)
• Work-related education: tuition, textbooks, supplies
• Safety equipment: sunglasses, sunscreen, hats
• Rental property expenses: mortgage interest, repairs, maintenance
• Business-related expenses (for self-employed)
• Other work-related costs: phone bills, seminars, tools, books
• Charitable donations

Personal-use expenses are not deductible.

• Other Useful Information (Some retrievable from ATO):

• Passport or Photo ID
• Copy of previous year’s tax return
• Bank account details (for refund)
• Private health insurance details (membership number, statement)
• Spouse and children’s information
• Any other documents related to income or expenses

By filing your tax return accurately, you can avoid penalties and receive the refund you’re entitled to.

If you have any questions, please don’t hesitate to contact TK Accounting Firm.