Filing your individual tax return is an important annual responsibility that ensures you meet your tax obligations while claiming the deductions and offsets you’re entitled to. The Australian financial year runs from 1 July to 30 June, and your return must generally be lodged by 31 October if you are submitting it yourself.
One of the easiest and safest ways to lodge is through a registered tax agent. Tax agents are authorised professionals who can prepare and submit your return on your behalf for a fee. They are the only people legally allowed to charge for preparing and lodging tax returns. To get started, you’ll need to gather all your necessary tax records before your appointment.
Using a Registered Tax Agent
A registered tax agent will help you:
- Accurately prepare your return.
- Ensure you claim all eligible deductions.
- Avoid mistakes that could lead to penalties.
You can find and verify a tax agent’s registration via the Tax Practitioners Board (TPB) website. Registered agents must meet strict qualification and experience standards and follow the Code of Professional Conduct, giving you confidence and consumer protection.
The ATO’s myDeductions tool (available in the ATO app) is a handy way to keep track of your income, work-related expenses, and deductions throughout the year. You can share these records directly with your tax agent when it’s time to lodge.
Claiming Work-Related Deductions
To claim a deduction for a work-related expense, you must:
- Have paid for it yourself and not been reimbursed.
- Prove it’s directly related to earning your income.
- Keep a record, such as a receipt or invoice.
If an expense is partly private and partly work-related, you can only claim the work-related portion. Examples of common deductible expenses include:
- Vehicle and travel costs.
- Uniforms, protective clothing, and laundry.
- Home office running costs.
- Self-education and training expenses.
- Tools, equipment, and other assets.
Expenses reimbursed by your employer are not deductible. The ATO may also verify claims with your employer if they suspect a reimbursement was received.
Tax Offsets and Rebates
Tax offsets (also known as rebates) can directly reduce the amount of tax you owe. While offsets can lower your tax payable to zero, they cannot generate a refund on their own.
Record Keeping
Throughout the year, you should keep important documents like payment summaries, receipts, invoices, and contracts. Good record-keeping makes lodging your tax return easier and ensures you can substantiate all claims.
Small Business & Sole Trader Considerations
If you are a sole trader, you can benefit from certain small business tax concessions, such as:
- Instant Asset Write-Off: Claim the full cost of assets under the current threshold in the year they are first used or installed for business.
- Prepaid Expenses: Deduct eligible expenses (like rent or insurance) paid in advance, if they apply to the following financial year.
- Simplified Stock Rules: Skip a stocktake if your opening and closing stock difference is $5,000 or less.
By planning ahead, keeping accurate records, and using a registered tax agent, you can lodge your individual tax return efficiently, maximise deductions, and stay compliant with the ATO.