How Does The Tax Return Process Work? Basics Things To Know!

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Tax Returns: 

Are you submitting your tax for the first time? It is an entirely new process for many Australians who are submitting the application for the first time, but it gets easy once the tax returns are filed. But before filing a tax return, one must see if they are eligible for the tax returns. At a minimum, anyone having a pay grade above $18,200, anyone running a business, or a foreign resident who has earned more than $1, are liable for taxation. An essential thing in filing a tax return is knowing what amount is to be paid to avoid further confusion.  

When to File a Tax Return:

Anyone who will file a tax return is supposedly going to ask about when to lodge the tax return. One must know about the tax year which dates from 1st July to 30th June. Hence, it is advisable to file the return around 31st October. Documents and information are to be arranged at least two-three weeks before filing the tax returns to ensure that the tax return is filed on 31st October. If anyone thinks that they might not be available for completing this whole process, they might look into hiring a tax agent. 

Steps for Filing Tax Returns: 

Anyone who is lodging the returns for the first time might feel troubled collecting and maintaining the documents. But if one knows the process, it becomes much more comfortable to file the tax returns. Below, the steps are explained to understand the process of filing a tax return: 

  1. Tax File Number (TFN): TFN or Tax file number is one’s reference number, identifying an individual. It is essential for filing a tax return, and it should be kept safe. It can be acquired through Australia Post. Without it, no one can file tax returns. 
  2. Bank State Branch Number: Bank State Branch Number (BSB) recognizes banks and their branches. One must know the banks’ BSB details because it is required when filing tax returns or when someone is transferring money in their accounts. 
  3. Bank Account Number: Bank account number can be taken from the bank statement because a tax return cannot be filed without it. One must have the bank account number, bank state branch number to altogether file a tax return.
  4. Tax Form: Tax forms can be acquired from myGov or ATO website. 
  5. Supplying the Required Information: Filling the form online is preferred and more manageable if one has the right knowledge about finances. All the information is to be gathered from multiple sources. 
  6. List the deductions: For the reimbursement of taxes, keep track of receipts and claim them when filing tax returns. 
  7. Submit the application: Check all the details before you apply. 

Tax Agents: 

Anyone who feels that it is too burdening or limited time is left for filing their returns can hire tax agents. These tax agents are responsible for collecting and providing the required documents for tax filing. But it is crucial to employ the agent before 31st October. If an agent is working for one’s tax files, they are more likely to get an extension in the deadline.

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