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.