Are you new to Australia? Or perhaps just new to the daunting idea of tax?
Either way, it’s time to understand the basics of the Australian tax system. You don’t want to end up paying too much or too little tax every year, and you’d want to make sure you’re getting proper returns! Let’s get started with some brief points.
It is necessary for you to apply for a Tax File Number (TFN) once you arrive in Australia or before you start work. This number will be your identifying number for the Australian Tax Office (ATO), and you must it keep safe with you. When you start a job, your employer will ask you to fill in a Tax File Declaration. Fill the form carefully to pay the right amount and check the “claim tax free threshold” box. This is the income you earn each financial year that is not taxed – as of now the threshold is AUD 18,200 annually. In other words, if you earn less than the threshold amount for the year, you’ll get all your tax back.
The financial year runs from 1 July to 30 June every year. Tax is usually deducted from your income. You can lodge your tax returns between 1 July and 31 October every year. Lodging a tax return for the first time can be scary – you can use a tax agent if you’re unsure; most people do!
In case you find yourself ineligible to apply for returns, you still need to lodge a Non-Lodgment Advice (NLA). It’s alright if you don’t know what it means yet, you can find out more online (see below) or talk to a registered tax agent like Solution In.
There are two main ways to lodge your tax returns:
1. Through a registered tax agent such as Solution In.
2. Self through the online method of ATO – myTax/myGov.
While either method is fine, remember to choose what would work best for you. Here are some useful links that can enhance your understanding:
- Where to file tax returns: www.ato.gov.au/individuals/tax-file-number/apply-for-a-tfn/(Official ATO site)
- Where to check for registered tax agents: www.tpb.gov.au/registrations_search
Let us know in the comments if this article was helpful, and sound off what else would you like to know from Solution In 😊
We also posted this article on LinkedIn.