Understanding Your Tax Return
The tax season is here and can sometimes seem a difficult task depending on your personal circumstance. As complex as tax returns may seem, here are some of the basics to help get you started this tax time.
Who needs to lodge a tax return?
If you have earned an income during the financial year (1 July – 30 June) and paid tax during that period, then you will be required to lodge a tax return this tax season.
If you are completing a tax return this year, it needs to be lodged between 1st July and 31st October. If you fail to complete your return during this period you may incur penalties, so it’s best not to leave it to the last minute.
What do I need to lodge a tax return?
If you’re unsure of what documentation you need to compile in order to successfully lodge your tax return, take a look at our interactive Tax Return Checklist to get you started on the right path.
What does ‘lodge a tax return’ mean?
It means you have to submit a statement to the Australian Taxation Office (ATO) declaring how much income you have earned that financial year, how much tax you have paid, and any deductions that you might be entitled to claim.
Why do I get money back?
As an employee, your employer automatically deducts tax from your salary. Sometimes this final figure isn’t correct, therefore you get some tax refunded to you. Likewise, if they haven’t taken enough tax, or if you have special circumstances with accrued interest or investment, you might owe additional tax.
If you have any doubt about what you’re entitled to in your tax return, it is always ideal to have a professional take care of your return for you. Let ITP Qld get you more in return this tax season.