If you earned an income in Australia between 1 July 2023 and 30 June 2024, it’s time to consider your tax return. If you do it yourself, you have until 31 October 2024 to lodge your return.
Lodging online has never been easier, thanks to the Australian Taxation Office’s (ATO) myTax platform. Follow these simple steps to ensure a smooth and hassle-free tax return process.
Let’s Get Straight to the Point
If you earned income in Australia between 1 July 2023 and 30 June 2024, you need to lodge your tax return by 31 October 2024. You can easily lodge your return online using the ATO’s myTax platform.
Most of your income details will be pre-filled, but it is important to review them and add any additional income or deductions.
You can claim deductions for work-related expenses, such as working from home, travel, uniforms, self-education, and investment costs.
Keep accurate records of all deductions, and consider using the ATO app for easy tracking. If you need professional help, consult a registered tax agent.
Lodge Your Tax Return with myTax
1. What is myTax?
myTax is the ATO’s free online tax return platform, designed to make the process quick, easy, and secure. All you need is a myGov account linked to the ATO.
Returns lodged through myTax are usually processed within two weeks, allowing you to receive your refund sooner.
2. How to Lodge Online Using myTax
Lodging with myTax involves just a few straightforward steps:
- Link Your myGov Account: If you haven’t already, create a myGov account and link it to the ATO.
- Check Pre-Filled Information: By late July, most information from employers, banks, government agencies, and health funds will be automatically included in your return. Review the pre-filled data to ensure it’s accurate.
- Add Missing Income and Deductions: Enter any income not pre-filled and deductions you wish to claim.
- Submit: Once everything is completed correctly, submit your return through myTax. The system will calculate your tax automatically.
For additional support, the ATO offers helpful how-to videos to guide you through the process.
Declaring All Your Income
What Income Should You Declare?
While myTax pre-fills most of your information, there may be additional income you need to declare manually. Common types of income include:
- Employment income (including cash payments and tips)
- Government payments (such as Age Pension income)
- Investment income such as interest, dividends, rent, and capital gains
- Income from the sharing economy (e.g., Uber, Airbnb)
- Foreign income and income from trusts or businesses
For a comprehensive list, visit the ATO’s website to ensure you declare all relevant income.
Claiming Tax Deductions to Maximise Your Refund
1. What Deductions Can You Claim?
Tax deductions can reduce your taxable income and increase your refund. You may be eligible to claim deductions for work-related or investment expenses. Here’s a breakdown of the most common deductions:
Working From Home Deductions
If you’ve been working from home, you may claim deductions using one of the following methods:
- Fixed Rate Method: Claim 67 cents for each hour worked at home, covering costs like:
- Internet and phone usage
- Electricity and gas
- Stationery and computer consumables
You must keep records of these costs and a detailed log of your working hours.
2. Actual Cost Method: This method allows you to claim expenses incurred. You must keep comprehensive records of all running costs, such as electricity and phone bills.
2. Other Work-Related Expenses
To claim any work-related expenses, you need to meet these criteria:
- You paid for it yourself and were not reimbursed.
- The expense directly relates to earning your income.
- You have a record to prove the expense.
Here are some examples:
1. Car and Travel Expenses
If you use your car for work, you can claim a deduction using either the cents per kilometre or the logbook method.
Remember, you can only claim for trips directly related to your job duties, not for commuting to your regular workplace.
2. Clothing and Uniforms
You can claim deductions for certain types of work-related clothing:
- Compulsory uniforms specific to your employer.
- Protective clothing like steel-capped boots or safety gear.
- Occupation-specific attire, such as a chef’s uniform.
3. Self-Education Expenses
You can claim self-education expenses if they directly relate to your current job. Eligible expenses include course fees, textbooks, stationery, and internet costs.
3. Investment Expenses
If you earn income from investments, you may claim related expenses like:
- Interest on money borrowed for investments.
- Investment property expenses.
- Costs for investment advice.
Refer to the ATO for more details on eligible investment income deductions.
Keeping Records for Your Deductions
To claim any deduction, you must have proof of the expense and how you calculated your claim. Most of the time, this means receipts. A bank statement alone is not enough.
Using the ATO App for Record-Keeping
The ATO app includes the MyDeductions tool, a handy way to keep track of expenses, vehicle trips, and income if you’re a sole trader. You can even upload your data directly into your tax return at tax time.
Getting Help From a Registered Tax Agent
Consider using a registered tax agent if you prefer a professional to handle your tax return.
Registered agents often have extended lodgment schedules beyond the 31 October deadline, but you must engage them before that date.
Always verify their registration on the tax practitioner register to ensure legitimacy.
Tips for a Smooth Lodgment
Regardless of how you lodge your return, remember that you are responsible for the accuracy of the information and the claims you make. Here are a few final tips:
- Double-check all pre-filled data in your myTax return.
- Make sure you have records for every deduction you plan to claim.
- Include all income to avoid penalties.
Conclusion
Lodging your 2024 tax return online with myTax is convenient and efficient. You can maximise your refund and stay compliant with ATO regulations by keeping thorough records and understanding the deductions available.
Frequently Asked Questions
1. When is the deadline to lodge my 2024 tax return?
The deadline to lodge your 2024 tax return is 31 October 2024 if you do it yourself. You may get an extension if you use a registered tax agent, but you need to engage them before 31 October.
2. What is myTax, and how do I use it?
myTax is the ATO’s free online platform for lodging your tax return. You need a myGov account linked to the ATO to access it. Most of your income information will be pre-filled, so you just need to review, add any additional details, and submit.
3. What deductions can I claim when working from home?
You can claim deductions for internet, phone usage, electricity, and stationery. You can use the fixed rate method (67 cents per hour) or the actual cost method, but you must keep detailed records of your expenses and working hours.
4. Do I need to declare all types of income?
You must declare all income, including employment, investment, government payments, sharing economy income (like Uber or Airbnb), and foreign income. Double-check pre-filled information in myTax and manually add any missing income.
5. What records do I need to keep for deductions?
You need receipts or detailed proof of your expenses and how you calculated your claim. The ATO app’s MyDeductions tool can help keep track of expenses, vehicle trips, and receipts in one convenient place.