How to Lodge Your Australian Tax Return: Deductions, Deadlines and myTax vs Accountant

Understanding the tax return lodgement timeline prevents costly late-lodgement penalties. The Australian tax year runs 1 July to 30 June - not the calendar year.

• Tax year: 1 July to 30 June. The 2024-25 tax year covers income earned between 1 July 2024 and 30 June 2025
• Self-lodgement deadline: 31 October - if you lodge your own tax return (via myTax or paper), it must be lodged by 31 October following the end of the financial year. For 2024-25: 31 October 2025
• Tax agent deadline: If you use a registered tax agent (accountant), the due date is extended - typically to 31 March of the following year (or later for complex returns). To access the extension, you must be on your tax agent's client list before 31 October
• Late lodgement penalty: The ATO charges a Failure to Lodge (FTL) penalty - $313 per 28-day period late (or part thereof), up to 5 periods ($1,565 maximum for individuals). Penalty applies even if you receive a refund
• Amended returns: If you discover an error after lodgement, you can amend via myTax or through your tax agent. Generally must be within 2 years of the original assessment. The ATO can amend your assessment within 2 years (individuals with simple affairs) or 4 years
• No lodgement required if: Your only income was salary under $18,200, you had no tax withheld, you had no other income sources, and you are an Australian tax resident. Confirm via the ATO's Do I need to lodge? tool on myTax

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Your tax return must include all assessable income received during the financial year - not just salary and wages. Omissions are a primary trigger for ATO audit activity.

• Salary and wages: Pre-filled from your employer's Single Touch Payroll (STP) data. Cross-check against your payment summaries (now called income statements in myGov)
• Bank interest: All interest earned from savings accounts, term deposits, and offset accounts is assessable. Banks report to the ATO - undeclared interest is cross-matched
• Dividends: Dividend income plus any franking credits. Include both Australian and international dividends. Managed fund distributions include capital gains, interest, and foreign income components - check your annual tax statement
• Rental income: Gross rental income (not net - deductions are claimed separately). Include rent received plus any renter-paid expenses that are your landlord obligation
• Capital gains: Gains from selling shares, property, or other assets. Include the full gain and applicable discount. Capital losses can only be offset against capital gains - not other income
• Government payments: Centrelink payments including JobSeeker, Parenting Payment, and Youth Allowance are assessable income. Age Pension is also assessable
• Foreign income: Employment income, pension, rent, or investment income from overseas sources is generally assessable for Australian tax residents - with a foreign tax credit for tax paid overseas
• Cryptocurrency: Disposing of cryptocurrency (selling, trading, spending, gifting) is a CGT event. The ATO has received data from exchanges since 2019 and actively matches crypto disposals

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Deductions reduce your taxable income dollar-for-dollar at your marginal rate. The ATO allows deductions for expenses incurred in earning assessable income - but they must be genuine, work-related, and substantiated.

• Work-related expenses: Costs directly related to your employment that were not reimbursed. Must have a receipt or adequate record for claims over $300 (under $300 can be claimed without receipt but must be genuine)
• Vehicle and travel: 88 cents/km (2024-25) for work-related travel (not home-to-work commuting), or logbook method for actual expenses. Travel between two jobs, or from work to a client site, is deductible. Home to usual workplace is not
• Working from home: 67 cents/hour fixed rate method (covers electricity, phone, internet, stationery) - requires a contemporaneous diary or timekeeping record of actual hours worked from home since 1 March 2023. Actual cost method for larger claims
• Self-education: Courses and study directly related to your current employment that maintain or improve specific skills required in your current role. Cannot be for a new career
• Professional memberships and subscriptions: Union fees, professional association fees, industry journals, and subscriptions directly related to work. All deductible
• Tools and equipment: Work-specific tools and equipment. Items costing $300 or less - claim full deduction immediately. Items over $300 - depreciate over effective life (or pool under simplified rules if eligible small business)
• Charitable donations: Donations of $2 or more to Deductible Gift Recipients (DGR) - the charity must be DGR-endorsed. Non-DGR donations are not deductible regardless of how worthy the cause
• Income protection premiums: Premiums on income protection insurance (where benefits are assessable income) are deductible - life insurance and TPD premiums are not

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The ATO's free myTax tool handles the majority of Australian individual tax returns. But for more complex situations, a registered tax agent adds meaningful value.

• myTax (ATO free tool): Available via myGov - pre-fills most income data from the ATO's data matching (salary, interest, dividends, government payments, health insurance). Suitable for employees with salary income, simple investment income, and straightforward work-related deductions
• myTax advantages: Free, fast (most simple returns complete in 20-30 minutes), pre-filled data reduces errors, refunds processed within 2 weeks
• When a tax accountant adds value: Rental properties (depreciation schedules, negative gearing, CGT on sale); share portfolios with complex CGT events; business or self-employment income; significant salary sacrifice and RFBA interactions; capital gains across multiple assets or years; deceased estate returns; overseas income or residency questions; SMSF returns
• Tax agent fees: Simple individual return $150-$350; complex return with investments and property $350-$800+. Fees are themselves tax-deductible in the following year (under tax affairs management expenses)
• ATO's data matching reach: The ATO receives data from employers, banks, share registries, managed funds, Centrelink, state revenue offices, ASIC, and international tax authorities. Attempting to omit income that the ATO already holds is detectable and carries penalties plus interest
• Registered Tax Agents only: Only tax agents registered with the Tax Practitioners Board (TPB) are legally permitted to charge for preparing tax returns. Check registration at tpb.gov.au before paying anyone to prepare your return

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The average Australian tax refund is approximately $2,800. Legitimate strategies - not over-claiming - ensure you receive every deduction you are entitled to without triggering ATO scrutiny.

• Keep receipts throughout the year: Use an app (Expensify, ATO myDeductions app) to photograph receipts as you go. At 30 June, collection is painless rather than frantic
• Log work from home hours contemporaneously: The ATO has specifically stated that reconstructed records (created at tax time) are not acceptable for the 67c/hour fixed rate method. Use a diary, calendar, or spreadsheet updated throughout the year
• Review prior year return: Compare your deduction categories against prior years - what you claimed before should still be claimable if your role hasn't changed. Missing categories are a common source of under-claiming
• Check your marginal rate: A $1,000 deduction saves you $325 (32.5% rate), $370 (37%) or $450 (45% including Medicare). Deductions are worth more to higher-income earners
• Voluntary super contributions: A personal deductible super contribution (with notice of intent lodged) reduces taxable income at your marginal rate. At 37%, putting $5,000 extra into super costs you $3,250 net and builds $4,250 (after 15% contributions tax) in retirement savings
• Don't claim what you didn't spend: The ATO's benchmarks flag industries with abnormally high deduction rates. Over-claiming is an audit trigger and carries 25% shortfall penalty plus 9-10% interest - a genuine deduction review is the safest approach

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