That time of year – Tax Returns

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It’s that time of year again when we all scurry around trying to find receipts in order to complete our annual tax return.

Receipts for costs that are legitimate and are able to be claimed as a work related expense for tax purposes.

It’s important because we all want to minimise the amount of tax we pay and claiming legitimate expenses is a way to achieve this.

If you work in Australia, tax will be withheld from your pay and you may need to lodge a tax return each year. The requirement to lodge a tax return will depend on how much income you have earned during the year.

417 and 462 working holiday visa holders pay 15% tax from the very first dollar earned for:

• the first $37,000 – for 2019–20 and earlier income years
• the first $45,000 – for 2020–21 and later income years.

Any income over these amounts is taxed at ordinary rates.

If you hold any other visa, then you don’t pay any taxes if you salary is below $18,200. If it’s:

• from $18,200 to $37,000, you pay 19% for every dollar earned above $18,200
• from $37,000 to $90,000 you pay $3,572 plus 32.5% for every dollar earned above $37,000

For more information, go to ato.gov.au/occupations or make an appointment with a registered tax agent or accountant to help you.

And yes, the costs of engaging a professional to help you complete your tax return is a claimable expense.