In Australia, tax time generally runs from July 1 to October 31 for the earlier financial year, from July 1 to June 30. Any resident who made any income during this time period has to lodge a tax return with the ATO (Australian Taxation Office), even if the income was investment-based, freelance or part-time.
It can be quite overwhelming for you to file an individual tax return in Sydney, particularly if you are doing it for the first time or in case your financial situation has undergone a change in the last year. However, you can generally have a much smoother experience when you understand the tax filling basics and follow a clear process. Whether you are opting for professional assistance from a company like Prowess Business Advisers or plan to file it on your own, this guide will help you to file an Individual Tax Return in Sydney properly.
Consider whether you need to lodge a tax return
You should note that not everybody needs to lodge an individual tax return in Australia. However, you are legally expected to file if you earned over the tax-free threshold. Also, even if you made an income below that threshold, you might still have to lodge a tax return for claiming a refund for taxes withheld. If you want to make sure of this, use the online tool of the ATO and search “Do I need to lodge a tax return?”.
Gather all the important documents
If you want to complete the individual tax return process in Sydney in a proper way, you have to gather all the essential financial documents. These include:
- Health insurance details
- Income Statements from employers or PAYG summaries
- Records of government payments (Centrelink, JobSeeker, etc.)
- Bank statements showing interest earned
- Investment and rental income records, if applicable
- Receipts for deductible expenses (like work-related costs)
You need all these documents to report everything in a proper way and claim all the deductions that you might be eligible for.
File using the right method
You can file your tax return in 3 primary ways:
- Online through myTax – You can access the free online service of ATO through myGov. It is an appropriate option for most individual taxpayers.
- Using a Registered Tax Agent – In Australia, many people like to get professional assistance, especially if they want to maximize deductions or have complex finances.
- Paper Lodgement Tax Return – It is a less common option today, although still existent and useful, particularly for those without any reliable internet connection.
If you plan to use the Individual Tax Return Services Sydney of a registered tax agent, ensure that he is listed with the Tax Practitioners Board. Get in touch with him before the deadline of October 31, as tax agents can often lodge taxes later on your behalf.
Log in and Pre-fill Your Information
In case you choose myTax, log into your myGov account and link it to the ATO. Most of your details will be pre-filled already for you by your bank employer and others. Carefully review these details and add any deductions or missing income details. This includes going through your bank interest details, checking your PAYG summaries and other pre-filled data. Ensure that it aligns perfectly with your personal records.
Claim your deductions
Claiming legitimate deductions is among the most important parts of individual tax filing in Sydney. Common deductions include:
- Home office costs (particularly if you are a remote worker)
- Work-related expenses (travel, uniforms, tools etc)
- Education and training costs associated to your job
- Donations to registered charities
You should always keep detailed records and receipts, as the ATO may ask for evidence in case your return gets reviewed.
Declare all sources of income
Keep in mind that you have to declare all kinds of income, and not only your salary. This includes Government payments, rental income, dividends from shares, interest from bank accounts and even foreign income. If you fail to declare all income sources, there could be delays or penalties. If you use the services of a tax agent, make sure that he misses nothing.
Review and lodge your return
Once you enter all your details and claim all the deductions, review your return carefully. Ensure that everything is precise and that you have duly signed the declaration. If you are using myTax, your refund or the amount or will be calculated automatically. Lodge your tax return online, once you are satisfied with the calculations. In most cases, within a period of 2 to 4 weeks, you are supposed to get a confirmation and a notice of assessment.
Monitor your return and pay, if required
Once you have lodged your taxes, check your myGov inbox or email to look for updates from the ATO. You can use direct debit, credit card or BPAY to make payments. In case you will get a refund, it will be directly deposited into your nominated bank account.
Conclusion
By following all these steps, you can file your individual tax returns properly. If you do not want to handle these things and would like to save on your time and efforts, you might like to hire Prowess Business Advisers for individual tax return services in Sydney.