Claiming a tax return in Australia can be a confusing and daunting task, but it is essential to ensure that you are receiving the right amount of refund.
In this article, we will guide you through the process of claiming a tax return step-by-step.
Determine Your Eligibility
Before you start claiming your tax return, you need to determine if you are eligible. Generally, if you have paid taxes during the financial year and your income is below the tax-free threshold, you may be eligible for a refund. However, there are several factors that can affect your eligibility, such as your residency status, your deductions, and your offsets.
Gather Your Documents
To claim your tax return, you need to gather all the necessary documents. These include your PAYG payment summary, any bank interest statements, dividend statements, and any other relevant documents related to your income and expenses.
Claim Your Deductions
Deductions are expenses that you can claim to reduce your taxable income and increase your refund. There are several deductions available, such as work-related expenses, self-education expenses, and charitable donations. To claim your deductions, you need to provide evidence of the expenses you have incurred during the financial year.
Claim Your Offsets
Offsets are deductions that reduce your tax liability dollar for dollar. There are several offsets available in Australia, such as the low-income tax offset and the senior Australians and pensioners tax offset. To claim your offsets, you need to provide evidence of your eligibility for each offset.
Lodge Your Tax Return
To claim your tax return, you need to lodge your tax return with the Australian Taxation Office (ATO). You can lodge your tax return using a registered tax agent such as Accountants Direct.
Review Your Assessment
After you have lodged your tax return, the ATO will assess your return and issue a notice of assessment. The notice of assessment will show the amount of refund that you are entitled to receive. You should review your assessment carefully to ensure that all your deductions and offsets have been correctly claimed.
Receive Your Refund
Once your assessment has been issued, you will receive your refund (if one is due) within a few weeks. You can choose to receive your refund by direct deposit into your bank account or by cheque (which takes a long time so we would not recommend it). You can also opt to have your fees taken from the refund by some tax agents such as Accountants Direct.
Seek Professional Advice
If you are unsure about how to claim your tax return or if you have more complex tax affairs, it is recommended that you seek professional advice from a registered tax agent. A tax agent can help you navigate the tax system and ensure that you are claiming all the deductions and offsets that you are entitled to.
Accountants Direct is Australia’s highest rated tax accountant according to client reviews.
Book here. https://accountantsdirect.com.au/
Stephen is the CEO of Accountants Direct and is a Professional Director, ASIC Agent, Startup Advisor & Investor & Capital Raising Specialist.
Contact Stephen or his team if you have any questions about this post or any business matter in general.