In order to be personal income tax compliant in Australia, you need to complete the three following steps:
- Understand your own personal circumstances and abide by any relevant tax obligations with the ATO, by the due date.
- Settle any tax payable with the ATO that may arise from your lodgements on time.
- Lodge in accordance with applicable tax rules and regulations.
Airtax is a tax accountant service, provided by PwC leading tax provider PwC, and is here to support you staying tax compliant.
1. Understand your own personal circumstances and abide by any relevant tax obligations with the ATO, by the due date.
An income tax return is required to be lodged annually by nearly all working Australian residents, and those who earn Australian-sourced income. If any of the following apply, you will need to lodge a return during the financial year:
✔ You have paid tax (PAYG) throughout the financial year
✔ You have earned income more than the tax-free threshold of $18,200
✔ You are a foreign resident and have derived Australian-sourced income
✔ You are a sole trader and have an active ABN
2. Settle any tax payable with the ATO that may arise from your lodgements on time
The income tax return is used to determine your income tax liability for the previous financial year. The Australian financial year runs from 1 July to 30 June.
You are required to complete and lodge a tax return before the 31 October of each year. If you lodge your return through a registered tax agent, such as Airtax, you may receive an extension of 6 months to lodge your tax return. If you are using a tax agent for the first time, or using a different tax agent, it is important that you contact them before 31 October in order to be added to their lodgement program.
If you are unsure whether you have the extension, send us an email here.
Once you have lodged your tax return, the ATO will assess your return and issue your Notice of Assessment confirming your final tax position. Most tax returns lodged result in a refundable position, and the ATO will pay a cash amount to your bank account. However, should you find yourself in a tax payable position, you will need to settle the payment by the due date advised by the ATO, otherwise you might be charged late penalties and interest.
3. Lodging in accordance with applicable tax rules and regulations
Being tax compliant also means that you declare your income and expenses correctly. Each tax return is different, so make sure that you understand what you need to do to correctly report your information.
Airtax helps you lodge in compliance with tax rules and regulations by:
- Capturing your information through easy-to-understand forms,
- Prefilling your income and other ATO data so you have less to complete yourself, and
- Ensuring that each return is reviewed by a PwC accountant before it is lodged with the ATO
Should you require further guidance on a particular matter beyond the wealth of free information available on our Help Centre, you can book a phone consultation with a PwC tax specialist by logging into Airtax and selecting the Tax Assist service.