Moving into a country is full of joy, but a lot of changes take place in culture, environment, and neighbours. Many things are there that you have to take into consideration and income tax is one of them. Different countries across the world have unique rules, and abiding by them is a need. If you do not know the changes or what all things to be taken care of, it is better to ask a tax accountant Perth about it. Here is a guide discussing the income tax in Australia.
About Income Tax
Income tax is an amount paid on all forms of income from profits of businesses, wages from jobs, returns from dividends, bank interests, etc. You also have to pay an amount when selling or giving a valuable asset, like shares or a house. In the country, you will come across a progressive tax system, and it is the higher a person’s income is, the higher tax he or she needs to pay. The lowest tax is 19%, and the highest tax can be 47%, and many people are paying in between these rates.
Know About The Tax Season
While looking to process your personal income tax, the most important thing to ask the experts is when you need to do so. The financial year runs from 1st of July to 30th of June every year. Every working person has to lodge the tax return with the tax office from the 1st of July to the 31st of October. In case you have not worked for a year, you must file for non-lodgement advice and a tax file number.
How Much Amount Should One Pay As Tax?
Another question taxpayers will ask is the amount of the tax they need to pay. Well, the value is not accurate as the money you have to pay is dependent on the salary you earn. Speak with a tax consultant to know how much you will actually need to pay. Usually, the personal income tax is paid by the employer by deducting the amount from your salary.
Every person will receive a paid salary from the company they are working for. It reflects the allowances, income, and other superannuation payments. It is vital to include all of that to declare the income. All the details need to be submitted digitally or in paper with records when lodging the tax in the ATO.
Lodging Tax Return
Three processes are there through which the tax return can be filed. It can be through a traditional tax agent, an online tax agent, and the ATO’s my Tax platform. Online tax professionals are reliable and skilled and can offer secure, faster, and user-friendly services. On the other hand, the myTax platform is also easy to use, and for that, you have to enter the details on your own. Lodging a tax return can be complicated, and the process to do so is explained here. In case you need any help, the professionals are always that at your assistance.
The Working Of A Tax Return
As you know the dates when you can lodge a tax return, here is the process of how to do so. To ensure everything is done correctly, you must communicate with a tax agent. Through that, the entire process will work smoothly. The steps are:
- All the crucial documents should be in place before you start lodging online.
- File important invoices, receipts, documents often to eliminate wasting time in the end. Otherwise, you have to spend a lot of time completing the returns.
- The details need to be up-to-date and free from errors. Minor errors can lead to troubles for you, so delay in payments.
- Additionally, you may need to pay heavy fines and hold the return for weeks.
- In case you have a super fund, you must know every aspect of tax obligations. Individuals from different age groups need to attain several tax obligations on superannuation withdrawals.
- A proper tax return Perth can be submitted when you have in-depth knowledge about it.
Getting A Tax File Number
A tax file number is also known as TFN, is a must if you are getting or working with a Centrelink benefit. It is given by the ATO (Australian Taxation Office) for tax management. In Australia, based on the tax system, the simple rules regarding allowable deductions are:
- Claiming deductions in the same financial year is a must for all.
- Claiming expenses is impossible for things you are reimbursed for.
- Written proofs or records should be there, like a receipt, invoice, etc.
Tax offsets will help in reducing the tax amount you have to pay.
Getting The Tax Refunds
Once you have filed for it, an assessment notice is sent to you. It indicates details on the tax you need to pay and the tax refunds. Some steps you will come across to get tax refunds are:
Claiming All Tax Deductions
In legal terms, claim all deductions for each expense you are entitled to. All the receipts should be with you as you cannot claim for things for which records are not there. As a result, you are not reimbursed for them, so ensure to have the evidence.
Keep Small Stuff To Enhance Tax Returns.
Each small purchase taking place over a year can enhance expenses and claim for deductions. It enhances the tax return, and for that, one needs to have receipts for small purchases.
Using A Tax Agent Service
It is said that around three-fourth of the Australian people are filing a tax return through a tax agent. It’s because they can help in eliminating unnecessary trouble and guiding you in a tax return. Selecting the right tax agent is of utmost importance as they are aware of the entire process.
Before filing a tax return, cross-checking all the details is essential as a single mistake can lead to fines. Remember to claim things that you are entitles to only. Do not claim for personal expenses reimbursed by the employer.