Online Company Tax Returns
WORK RELATED SELF EDUCATION EXPENSES
In general, the first thought that enters our heads when we hear the phrase Tax is that I have to pay. However ,Tax Return refers to the cash I should be receiving! Let’s face it, nobody enjoys paying taxes, including ourselves, so the term “tax return” truly refers to a refund of the excess tax paid from the tax withheld amounts from the tax office. A thorough examination of the Australian tax system will provide a complete picture and throw light on what tax is and when and how much to pay to the ATO (Australian Taxation Office). The information below was accurate at the time of writing because tax and compliance regulations are always changing.
The money we must give to the government in the form of taxes can come from the federal, state, or local governments. These funds are used by the government to fund services that we depend on every day, including transportation, health care, national security, public education, infrastructure, roads, and railroads.
The tax levied on those with high salaries is also used to cover the costs of those with low or medium incomes.
If you have received any type of income, unless it is exempt income, you must file a tax return and disclose that income. You would typically be qualified to obtain a refund. This is due to the fact that if you were an employee, taxes would have been deducted from your paychecks as a requirement; yet, if you were a business owner, you would have made prorated PAYG installment payments on a quarterly basis.
Therefore, if you are an employee, operate your own firm, are a business partner, or serve as a director of a company, you must file a tax return, regardless of whether you received trust.
In Australia, the fiscal year for filing tax returns runs from July 1 to June 30. The deadline for filing a tax return on your own is always October 31st. If you work with a tax accountant who is also a registered tax agent, you can be eligible for an extended due date.
Knowing your tax residency is essential because resident and non-resident tax thresholds and rates vary. It is also important to remember that Australian citizens pay taxes on their worldwide income.
The maximum marginal rate for individuals is 45% for incomes over 180k, and the present tax-free threshold for residents
Below is a table providing a brief about the tax thresholds for resident tax payers:
Taxable income Income tax on this amount
$1 – $18,200 Nil
$37,000 – $18,201 19c for every $1 above that amount
$3,572 additional 32.5 cents for every $1 over $37,000 plus $37,001 – $87,000
$19,822 additional 37c for every $1 over $87,000 between $87,001 and $180,000.
$54,232 for amounts exceeding $180,000 plus 45 cents for every additional $1
The 2% Medicare levy
thresholds for personal income taxes for non-residents:
Income that is taxable Income tax on this
$87,000 to $1, 32.5 cents to the dollar.
$28,275 plus 37c for every $1 over $87,000, or from $87,001 to $180,000
$180,001 and more $62,685 plus 45 cents for every every $1 over $180,000
When filing your first tax return, you must have your TFN (Tax File Number) and any other form of picture identification, such as a passport or birth certificate, to confirm your identity.
My Govt Account, to create your account.
In order to obtain your special connecting code to authenticate your account, dial 13 28 61 and press 5 at the prompt.
If you incurred any work related deductions then they may be deductible and could reduce your taxable income.
Below are a few examples of work-related expenses (please note that there are unique requirements and rules that apply to the claiming of deductions):
- Transportation costs for trips between home and work.
- The cost of clothing, laundry, and dry cleaning.
- Cost of a home office.
- Smartphone
- Internet
- Extra-pay dinners
Self-education costs
- Equipment tools
- Additional work-related costs (Books, Glasses and contact lenses).
The low income tax offset is a typical tax break for part-time and casual employees. You will receive the entire $445 offset if your taxable income is less than $37,000. You will only receive a portion of this offset if it is less than $66,667. When you file your return, the ATO will automatically calculate this offset for you..
Related posts
