Below are the basic facts
Do I need to lodge a Tax Return?
If you earned $18,200 or less in the financial year (eg between 1 July 2017 to 30 June 2018) and you had no tax withheld from your all income, you may not be required to lodge a tax return.
Gross Earnings from Job $15,000
Tax withheld (Paid) NIL
Interest from Bank $200
I don’t need to lodge the return. But how does ATO know about it?
A non-lodgment advice (NLA) is a form that is sent to the ATO if you do not need to lodge a tax return. Inform your tax agent ( eg Yogi Group Accountants & Business Advisors) to inform ATO and submit NLA form.
But I got earnings from my ABN (sole trading business)?
You need to lodge the return. If you have loss during the financial year then you can use those loss for next year or unless you make profit from business. Your business information and earnings need to be informed to ATO.
I got ABN but I don’t use ABN and I will not use ABN for near future?
You need to cancel your ABN. ATO believes ABN holders are conducting business and if you are not then there is serious misunderstanding between you and ATO. Immediately cancel the ABN to avoid any penalties and to do right thing. Inform your Tax Agent and seek help to cancel it. When you need ABN, ATO can re-activate ABN for you and you will get same ABN number.
I earned less than $18,200, but I paid tax, now? You need to lodge the tax return.
This is my first time lodging the tax return. Do I get full tax refund?
If you have earned more than $18,200 in a financial year then you are likely NOT to get the full tax refund. Over $18,200 earnings, you MUST pay tax. It does not matter if it is your first time or not. Other factors, as part year tax free threshold can apply at many instances which means even if your earnings are around or less than $18,200 you could be liable to pay tax. You need to consult Professional Tax Agent & Accountants like Yogi Group Accountants & Business Advisors.
I am an International Student. Am I treated differently?
If a person in Australia passes the residency test for tax purpose, then they are resident for tax purpose. It means you will be treated as other residents for tax purpose.
However, you can apply for Medicare Levy Not Entitlement Certificate from Human Services which enables you NOT to pay Medicare Levy. This will save you up to 2%. It boosts your refund.
Consult us (Yogi Group Accountants & Business Advisors) for more information.
Ok! I paid tax and have reasonable earnings, how do I get refund?You need tax deductions to get refund!
Tax deductions are key way to increase your tax refund – but how does it work?
Misunderstanding - Tax deductions mean, you get the whole cost back from the ATO when you lodge your tax return
Truth - Tax deductions only reduces your “taxable income” and that means, you get some part of the cost back for expenses deducted.
√√ deductions are for work-related expenses. But deductions can also be for things like insurance, tax agent fees, charity donations and rental property expenses. √√
To claim deductions, you must have spent monies for Work Related Use and must have receipt. You must keep all receipts for atleast 5 years. ATO can audit you…
what do you actually need?
but Which records should you keep?
First, you need a record of all the income you received which are
· Rent from rental properties
· Total ABN earnings if you are a sole trader
Eg: ABN earnings for Cleaners - https://www.yogigroup.com.au/blog/tax-checklist-for-cleaners-and-cleaning-business
Next, you need deductible expenses related with all the income
You cannot claim donations if the entity does not exist in ATO list. The list can be found here:
B. work related expenses
Self – Education Expenses
Ø result in, or is likely to result in, an increase in your income from your current employment.
You are a Carer and wish to become a Enrolled Nurse or Registered Nurse. You commence a Nursing degree. This opens up new income earning opportunities in the future and the cost of the course is incurred too soon to be regarded as being incurred in earning your income from Nursing. The costs of the nursing degree will not be tax deductible.
Can I claim my University or College Fee?
It falls under Self-education expenses and strict rules and tests follow. See above example for common scenario.
Note: Above information are factual and knowledge driven to educate and inform the audience and learner about basic need and/or way to follow the tax rules and regulation in Australia. Above information are not the tax advice. Please consult with us ( Yogi Group Accountants & Business Advisors) for complete tax advice.
Contact us to discuss more and go through your tax return. We are here to help you.
Yogi Group Accountants & Business Advisors
278 Payneham Road, Payneham SA 5070
M: +61. 405. 573. 239