Most individuals need to declare to the Australian Tax Office (ATO) their annual income in order for ATO to work out how much tax is payable. As your employer will already have made a compulsory withheld on your wages, your balance of taxes will often result in a tax refund.
This refund will be sent directly by the tax authorities to your nominated bank account. Frequently this transfer will occur 1-2 days before your receive the official tax assessment letter!
Financial year in Australia runs from 1st July to 30th June.
In preamble, check if you are required to lodge a tax return for the relevant year
To meet you Australian tax obligations, you need to prepare and lodge your own annual tax return before every 31st October. This can be fulfilled:
1- On paper by mail, most refund will be processed on 50 business days
2- Online using e-tax (free ATO facility), most refund will be processed on 12 business days
You forgot to lodge your tax return before the 31st October?
Don’t worry, your registered Tax Agent, can lodge on your behalf until next 15th May!
Tip: A person, partnership or company is not entitled to charge a fee for preparing an income tax return, and/or act on your behalf for tax relating matters, unless they are registered as a Tax Agent with the Tax Practitioners Board.
Tip: From 1st July 2012, your Tax Agent is required itself to comply with the new ATO’ regulations in order to allow its clients the benefit of a regular extension until 15th May.
Bilateral Solutions is proud to have received its ATO certificate of compliance on the first year of the introduction of this new ATO Lodgement Program.
What could be the consequences of a Failure to Lodge (FTL) on time?
ATO can apply penalties, default assessment warning letter and finally default assessment.
All will vary depending on your number of outstanding tax returns not lodged, your history of noncompliance and your prompt action if you received an ATO request letter.
Tip: Do not ignore ATO warning, contact a registered Tax Agent as soon as possible.
Do not forget that if you are a temporary resident and intend later on to lodge an application to become permanent resident the department of immigration will check that all your tax affairs are in order...
Tip: Lodge all your overdue tax returns before applying to be able to fit the criteria of “fit and proper person” to be welcomed in Australia!
No time? Travelling around the world?
Bilateral Solutions offers a NEW service to lodge your Australian Tax Return Online!