When you are working in Australia, one of the important tax-related terms that you need to be familiar with is income tax. This refers to money paid to the government as a percentage of your gross income. Money from your work, pension, some government payments, investments, capital gains, and trusts or businesses is taxable. On the other hand, there are some things that generally aren’t taxable such as income tax on prizes and lottery winnings, small gifts or birthday presents, child support, as well as government super co-contributions.
Australian Taxation Office website
The quickest way is to do it online through the Australian Taxation Office website. Indicate your income and deductions in the pre-lodgement questionnaire and you will be provided with the suitable tax return product.
The amount of income tax paid is based on how much is earned, and the highest rate that you will pay is known as the marginal tax rate. You can use an income tax calculator so you will have an idea on the amount of income tax that you need to pay.
Another important tax-related term is tax return. If you are earning a salary in Australia, you need to lodge your tax return. While your employer will deduct the taxes for every salary, lodging your tax return is necessary if you have additional income or you may need to claim some work-related expenses.
How can you lodge your tax return?
The simplest and quickest way is to do it online through the Australian Taxation Office website. Indicate your income and deductions in the pre-lodgement questionnaire and you will be provided with the suitable tax return product. You can likewise lodge your tax return through a registered tax agent, a Tax Help program or by completing a paper tax return form.
When do you need to lodge your tax return?
Since June 30 marks the end of the Australian income year, you can lodge your tax return of the previous income year from July 1 to October 31. Take note that should you decide to get a registered tax agent, you may lodge your tax return after October 31, just make sure to arrange it with him/her before that date.
Matters related to taxes can be overwhelming for a lot of people, but it doesn’t have to be that way. There are a lot of resources that will help you understand tax returns and income tax in Australia. Friends and family who have experience in handling income tax and lodging tax returns can likewise provide insights and tips. Also, you can seek assistance from a qualified individual. He/She will be able to guide you through the different tax processes.
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