7 Easy steps to file your taxes in Australia

7 Easy steps to file your taxes in Australia

All individuals earning in Australia are liable to pay taxes to the government. If you are working for an organization and receive a salary, things are relatively easier for you, because your employer pays the taxes on your behalf. However, that doesn’t mean that you shouldn’t lodge your taxes. There are two major reasons why you must lodge your taxes.

  • Your employer might not be aware of other incomes and any mismatch can get you on to the radar of the ATO.
  • You can opt for deductions related to your work or other applicable deductions.

And the most obvious reason of them all being, if you have paid more money in taxes, you can get it back.


Before you get started with lodging your taxes, it is crucial to know if you really must do it. Well, it is another way of saying you must check if you owe any taxes in the first place. There are several online calculators which will help you make that assessment whether or not you owe any taxes. If the answer is a Yes, you can do the following to lodge your taxes.

Steps to File taxes

Of course, there is more than one mode of lodging your taxes in Australia. But the most preferred and even recommended way is online. When you lodge your taxes online, the entire process is incredibly fast and easy. Not to mention several aids that you have instant access to as well. If you are lodging your taxes for the very first time in Australia, here are the steps.

  • Before starting, get your Tax File Number or TFN with you. It is also advisable to have any one of the documents such as passport, birth certificate or certificate of citizenship.
  • You must visit the myGov website and create an account over there.
  • In order to complete the account creation process, you must verify the newly opened account. To do so, you must call at 132861, follow the instructions and press 5. This will lead you to get the unique linking code for your new account. Use the same to complete the account opening process. The code is valid only for 24 hours, so make it a point to finish the account opening process as soon as possible.
  • You must now log in to your myGov account and go to the services tab. Over there you will find a link to ATO where you must select ‘I have a linking code’. The website will prompt you with some instructions, follow the same.
  • Your initial set up for using the services provided by the ATO is now complete. You can go to the myTax link and start with your tax lodging.
  • If you are not very comfortable with filing your taxes online, you can always do it via a tax agent. Make sure you are availing the services of only registered agents for your tax filing and returns.
  • Alternatively, you can do it the old school way as well. The ATO still allows you to lodge your taxes via paper returns. You can fill up the forms, provide supporting documents and mail the same. The refunds or processing usually takes up to 50 business days. You can convert those 50 business days into roughly two weeks if you go online.

These are the seven easy steps of filing your taxes in Australia. Should you have any doubts about the process, the ATO website provides exhaustive information and is quite helpful. Once you are ready with your documents, you can lodge them between 1st of July to 31st of October.

Taxes for Foreigners Working in Australia

Taxes for Foreigners Working in Australia

Taxes for Foreigners Working in Australia

Taxes for Foreigners Working in Australia.Taxation isn’t a new concept. It has been in and around for quite some time now. It works on a simple idea that anyone working in a specific country or state ought to pay a certain amount as taxes. The same is then spent on infrastructure and several other growth-related aspects. When you are working in Australia you are liable to pay taxes. Australian residents must pay taxes and non-residents must also pay taxes on their Australian income.

How does Australia’s taxation work?

If you are an expat in Australia and receive wages, salary, cash compensation, or other allowances, you must pay the applicable taxes. As is the case with most taxation system, you are allowed for deductibles from your assessable income. Depending on your net taxable income and the appropriate tax slab, you are liable to pay taxes.

Should your employer provide you with non-cash benefits or compensations, the same is subject to Fringe Benefits Tax. You do not have to scratch your heads over it, as your employer must pay the same. The Australian Tax year starts on the 1st of July and ends on the 30th of June.

What is the tax slab?

The government levies different taxes based on which tax slab you belong to. These are net taxable income, so you must figure out which all deductions are applicable.

  • Expats earning between 0-18,200 AUD are not liable to pay any taxes at all.
  • If you earn between 18,201-37,000 AUD, you must pay 19% as income taxes.
  • For earning between 37,001-87,000 AUD, the income tax rate stands at 32.5%.
  • If your annual income is within the range of 87,001-180,000 AUD, the income tax rate is 37%.
  • Individuals taking home more than 180,001 AUD must pay 45% as taxes.

However, if your earnings sum up to 20,542 AUD you are not liable to pay any taxes. Provided you utilize the Low Income Tax Offset or LITO.

Certain Advantages and Disadvantage

If you are an expat earning in Australian Dollars, there are two sides of the coin that you are exposed to. While there are some merits of being an earning Expat, there are certain shortcomings as well. Here are some of the differences.

  • A resident Australian effectively pays lesser taxes than what a non-resident would. A non-resident pays more taxes per dollar.
  • An Australian resident is liable to pay taxes on their global income whereas a non-resident must pay taxes only for his Australian income.
  • Residents have the go green flag for paying medical levy and can claim various medical expenses. On the other hand, a non-resident can neither pay medical levy nor can he/she claim their medical expenses.
  • Residents have an upper hand when it comes to bank accounts as well, as they can accumulate interests on savings on at a normal rate. Expats on the other hand are taxes at 10% flat on their earnings via interest.
  • An Australian citizen is liable to pay capital gains tax on almost everything, property, shares, stocks etc. However, an expat must only pay capital gains taxes on real estate or property and not on shares.

Other Benefits

For expats working in Australia, they can claim a certain amount as tax offset and it is applicable to the amount that they have paid foreign taxes on, the assessable income to be more precise. ATO has a tax treaty with more than 45 countries and if you belong to anyone, you can benefit from the same. There are several online calculators which can aid you in understanding your tax liability as an expat.

Tax Deductions in Australia

Tax Deductions in Australia

Tax Deductions in Australia

For individuals working in Australia, life is no different at least from a taxation point of view. You are liable to pay taxes on the money that you earn as salary, wages, returns from renting out places, interests and dividends earned, profits that you have made by selling shares or properties and so on. But as is the case with any country that levies taxes, you can opt for deductions to reduce your tax liability. Should you decide to choose any of the deductions, the same is subtracted from your income to arrive at a net taxable income. Here are some of the deductions that you can avail.

Travel Deductions

Keeping a track of all of your work related travel expenses will come in handy during the tax filing season. If you are someone who uses his/her car for business related travels, you can claim the amount for your taxes. The only caveat being, you must be the owner of the car and have a track of all the expenses. You need to be careful with this deduction as the following are not allowed.

  • Claiming expenses for daily commute to the office.
  • Claiming expenses if you are working late and public transport is not available.
  • Claiming expenses if you must attend parent teachers meeting or leave office due to some other security concerns.

Clothing Deductions

There are quite a few work place environments that expect you to dress up in a certain way. For an instance, some might expect you to come in suits while others will expect you to sport the company’s emblem or logo on your shirt. You can check with your employer if there are certain clauses under which you can claim for the same.

The deduction allows you to claim money that you spend explicitly to get ready for your profession. You can also claim clothing that protects you from potential injuries or accidents. The same is not restricted only to clothing, as footwear is also included. You can also claim the deduction if your company demands to place its logo on your shirts.

Deductions related to Working From Home

Few professions let you work from the comfort of your homes. If your line of work allows you to work from home either partially or completely, you can avail benefits under home office deductions. In an ideal world you are required to have a separate room to claim the same. However, if it’s a multipurpose room, you can only claim for the number of hours you spent for work.

This clause lets you get devices, computers, phones or other equipment that you might need to perform your duties. You can also claim the running electricity bills for the same. You can claim up to a maximum of $300 for computers and other devices. The clause also lets you claim phone bills, if you use it only for business purposes.


It is not unknown for organizations to gift their employees based on merits or otherwise. You can claim these gifts or donations as long as the same has a Deductible Gift Receipts status. The following are the only criteria for claiming under gifts and donations.

  • It must be a genuine gift and not just for namesake.
  • Any form of money, financial assets or property is acceptable.
  • DGR status must be associated.
  • Ensure to verify the DGR conditions as they might vary.

If all of the above conditions are met you can claim the amount as long as it exceeds $2. The rules and regulations change when it comes to property, so you need to read the finer lines for a better understanding.