Tax time is coming — and with it, the unlucky actuality of needing to do one thing to prepare.
Don’t put your head within the sand and ignore it. That’s how one can find yourself lacking the 31 October deadline and doubtlessly find yourself with fines and penalties.
And don’t danger taking tax recommendation from unofficial sources.
This 12 months, the Australian Taxation Workplace (ATO) has warned towards counting on on-line ideas or “tax hacks” from “finfluencers”: monetary influencers on social media. It’s additionally warned synthetic intelligence platforms can draw from outdated, inaccurate or international sources — so utilizing them to your tax might be dangerous.
When you’re looking for recommendation, all the time guarantee you might be coping with a registered tax agent.
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Fortunately, the ATO has been enhancing its on-line tax instruments, so lodging your tax your self isn’t as daunting because it as soon as was.
A rising development to DIY taxes
Greater than 6.1 million Australians (round 43 per cent) did their very own tax on-line with MyTax in 2025.
Greater than 8.1 million (round 57 per cent) nonetheless select to make use of a tax agent.
However doing your personal tax has been a steadily rising development for greater than a decade, as extra folks realise the convenience of utilizing MyTax.
The tax workplace is aware of quite a bit
As a taxpayer, you’ve gotten the duty to inform the ATO what you’ve gotten earned — even when you assume you don’t should pay any tax.
Whereas the ATO know much more about you than you would possibly realise, they aren’t thoughts readers.
The tax workplace collects greater than 600 million transactions yearly from numerous third events. Typically they share the data with you — equivalent to once they pre-fill sections of your MyTax kind — however typically they don’t.
Whereas articles like this about tax time typically deal with claiming deductions, being clear about your revenue is non-negotiable.
No matter you declare in your tax return, the onus is on you to get it proper.
In case you have deposits in your checking account, are you able to clarify the place these got here from? If not, the ATO might deem that these deposits have been revenue. Then it’s as much as you because the taxpayer to show in any other case.
Claiming work deductions
Whenever you get to your deductions, there are three “golden guidelines” to recollect:
- You must have spent the cash and not been reimbursed (equivalent to in case your employer paid to your cellphone or petrol bills)
- Your spending should be straight associated to incomes your revenue
- You have to have proof (often a receipt).
In case you are claiming working from residence, there are two choices to scale back your tax invoice: the mounted charge or precise value approaches.
The $0.70 per hour fixed-rate methodology is way less complicated. For most individuals doing their very own tax, it’s the one you’re extra doubtless to make use of.
However be careful for traps. To say this deduction, you have to preserve information your entire 12 months.
And the fixed-rate methodology contains widespread bills equivalent to telephones and stationery, so don’t double dip by claiming these individually.
You can not declare hire or curiosity for working from residence, until your property is an precise place of work, equivalent to a health care provider’s surgical procedure or hair salon.
Equally, you can not declare on a regular basis clothes. To say a deduction on clothes, it must be occupation particular, protecting (equivalent to steel-capped boots), a obligatory uniform (prone to be written into your employment contract) or a registered non-compulsory work uniform.
You can not declare personal journey. This contains driving to and from work, or commuting on public transport. There are very restricted exceptions.
Don’t simply rollover your claims from final 12 months, both. What have you ever really spent this 12 months — and have you ever acquired the receipts to again it up?
Why you possibly can’t declare a $1,000 ‘on the spot’ deduction simply but
There’s been lots of protection about the $1,000 “on the spot” tax deduction and the “working Australians tax offset” of $250, introduced in final month’s federal funds.
These are not related for this tax season. These are as a result of begin from subsequent monetary 12 months and past, assuming they’re handed by parliament.
When it’s higher to lodge early or later
Taxpayers ought to lodge when required. Assume Goldilocks right here: not too quickly — and never too late.
When you attempt to do it too early, ATO information matching might not be full. Typically, that’s completed by round finish of July.
You’re higher off ready till all the data is there, in any other case the ATO is prone to amend your return. You possibly can both lodge your self or use a registered tax agent.
Anticipating a tax refund? You’re higher off lodging earlier, from late July on. For easy, self-lodged tax returns, you possibly can typically anticipate to get a refund inside about two weeks. So meaning you’ll have extra money in your checking account sooner.
Anticipating a tax invoice? That’s once you’re higher off lodging simply in time: by 31 October when you’re submitting your self, or ensuring you’ve gotten a tax agent locked in by then.
The place to get assist
The ATO offers quite a lot of steerage and recommendation to help taxpayers, whereas tax brokers may also help you to pay the correct quantity of tax.
Watch out of unregistered tax brokers, notably these tax “influencers” providing big refunds. When you’re uncertain, verify this official register.
By no means give out your login particulars to myGov or myTax. Registered tax brokers won’t ever ask to your passwords.
When you’re dealing with monetary, social or private challenges and need assistance, free tax clinics can present focused help.
And when you’re having difficulties assembly your tax obligations, or are unable to lodge on time, contact the tax workplace or a registered tax agent as quickly as potential.
Disclaimer: This isn’t tax recommendation, it’s for academic functions solely. Taxpayers ought to search recommendation from a registered tax agent or suitably certified skilled.
Elizabeth Morton is a senior lecturer at Curtin College. Morton has beforehand been contracted to co-facilitate a short-term coaching contract for tax and crypto facilitated by UNSW for the ATO and is at the moment a member of the ATO’s Crypto Business Working Group. That is unrelated to this text. Elizabeth has not acquired grant funding straight associated to the content material of this text. Elizabeth is a chartered accountant, a fellow of the Tax Institute and a member of the Institute of Public Accountants.
Lisa Greig is a lecturer in taxation legislation for accountants at The College of Melbourne. Greig has beforehand been contracted to co-facilitate a short-term coaching contract for tax and crypto facilitated by UNSW for the ATO. Lisa has not acquired grant funding straight associated to the content material of this text. Lisa is a fellow of the Chartered Accountants Australia and New Zealand, a chartered tax adviser with the Tax Institute and a fellow of the Institute of Public Accountants. Lisa volunteers on the Melbourne Regulation Faculty Tax Clinic.
