If there’s one thing Australians dread as the end of the financial year rolls around, it’s tax time. The pressure to get everything done properly — and punctually — can leave even the most organised person second-guessing every number they type into their tax return. So, how can you ensure your tax return is lodged correctly and on time?
It’s not as tricky as it sounds, but there are steps you need to take, boxes you must tick, and habits worth forming. Let’s break this down into straightforward sections so you can lodge your tax return without a hitch — and sleep easy knowing the ATO won’t come knocking.
Visit our website and read the full report.
Know Your Lodgement Deadline
Key Dates You Can’t Ignore
The first thing to get right is the due date. If you’re lodging your tax return yourself using myTax, the deadline is 31 October. If you use a registered tax agent, the deadline may be extended — but only if you’re already listed with them before 31 October.
Missing this date could result in penalties. It might be tempting to “do it later,” but the ATO doesn’t see it that way.
What Happens If You’re Late?
Penalties for late lodgement start at $313 and can increase by $313 for every 28 days you’re overdue — up to a maximum of $1,565. And that’s just for individuals. If you owe money, interest charges may also apply.
Gather All Required Documentation
Start With Income Records
To lodge your tax return correctly, you must have complete income records. These include:
- PAYG summaries or income statements from employers
- Bank interest statements
- Dividends and managed fund distributions
- Rental income statements
- Centrelink payments (if applicable)
Having this information before you start will save time and reduce errors.
Don’t Forget Deductions
You can only claim deductions if you have proof. Keep:
- Work-related expense receipts
- Car and travel logs
- Charitable donation receipts
- Home office expense calculations
- Investment property expenses
Trying to claim without evidence is asking for trouble. The ATO has advanced data-matching systems that can quickly identify suspicious claims.
Use The Right Lodgement Method
Online Via myGov
The simplest way to lodge your return is through myGov, linked to the ATO. It’s fast, secure, and generally pre-fills a lot of information. However, you’re still responsible for checking that everything is correct.
Through A Registered Tax Agent
If your situation is more complex — for instance, if you have multiple income streams, investments or run a business — using a tax agent might be wise. Agents know what to claim and how to present it. Make sure your tax agent is registered with the Tax Practitioners Board. You can check this online.
Check Your Pre-Filled Data
It’s Not Always Perfect
MyGov usually receives information from employers, banks, and other institutions. However, these pre-filled records can be incomplete or delayed.
Always double-check:
- Employment income
- Interest earnings
- Dividends
- Health insurance details
If something’s missing, don’t assume it won’t matter. You are legally responsible for ensuring that everything is included.
Claim Legitimate Deductions
Understand What You’re Entitled To
You’d be surprised how many people leave money on the table. If you work from home, travel for work, or buy job-related equipment, you may be entitled to a deduction.
Legitimate work-related deductions must:
- It is directly related to your job.
- Have been paid for by you, not reimbursed.
- Be supported by records.
Avoid Common Deduction Mistakes
Some things you can’t claim include:
- Everyday clothes (unless they’re branded uniforms or safety gear)
- Commutes between home and work
- Meals or entertainment, unless specifically work-related and not reimbursed
Keep Detailed Records
What To Keep And For How Long
You must keep your tax records for at least five years from when you lodge your return. This includes:
- Receipts
- Invoices
- Statements
- Calculations
- Written evidence of work use
Cloud storage or digital record-keeping apps simplify the process. However, ensure that the records are legible, accurate, and easily accessible.
Be Honest And Accurate
Avoid Guesswork
Don’t round off numbers or estimate expenses. If the ATO audits your return and finds errors, you could be hit with fines, interest, or amended assessments. Quoting actual figures from receipts or documents ensures compliance and accuracy.
Declare All Income
Side hustles, freelancing, crypto gains, rental income — it all needs to be declared. Undisclosed income is one of the top reasons people end up in hot water with the ATO.
Understand Offsets And Rebates
Know What Applies To You
You may be eligible for tax offsets like:
- Low and middle-income tax offset (LMITO) — if you earn less than a set threshold
- Private health insurance rebate
- Spouse or dependent tax offsets
These can reduce your tax payable or increase your refund. Always check the latest thresholds and rules from the ATO website.
Double-Check Before Lodging
Use This Quick Checklist
Before hitting submit:
- Have you included all sources of income?
- Are all deduction claims backed up with receipts?
- Is your info accurate?
- Have you reviewed the pre-filled data?
- Did you complete any spouse or dependent details?
Running through this list can save you from an amended return — or worse, an audit.
Lodge Early (But Not Too Early)
Timing Matters
The ATO recommends waiting until late July to lodge, as most pre-fill data is usually available by then. Lodging too early could mean missing out on income statements or deductions. Still, don’t leave it until the last minute. Early August through September is a good time to lodge if you’re doing it yourself.
Stay Organised Year-Round
Don’t Wait Until June
You’ll make tax time much easier by staying organised throughout the year. Set up a digital folder or use an expense tracker app to store:
- Work-related receipts
- Travel logs
- Invoices
- Statements
You’ll save yourself hours and reduce errors when it’s time to lodge.
What If You Make A Mistake?
Amendments Are Allowed
Mistakes happen, and the ATO knows that. If you realise you left something out or made an error, you can request an amendment using myGov or through your tax agent. The sooner you correct it, the better. Waiting too long can lead to penalties or interest.
Avoid Tax Scams
Watch For Suspicious Contact
Scammers often pretend to be from the ATO around tax time. They might contact you via:
- Phone calls
- Text messages
- Emails
The ATO will never threaten arrest, demand payment in gift cards, or ask for personal information via text or email. Report suspicious activity to the ATO or Scamwatch.
Use ATO Resources And Tools
Helpful Tools To Stay On Track
The ATO website offers a range of tools:
- myTax: For online lodgement
- MyDeductions app: For tracking expenses
- Income tax estimator: To calculate your refund or debt
Using these tools correctly helps ensure your tax return is lodged on time and without errors.
Stay Ahead With Professional Advice
When To Consult An Accountant
If your financial situation is complex, involving trusts, business income, or capital gains, professional help is worth the investment.
Accountants not only help you stay compliant but may also save you more than they charge by identifying legitimate deductions you might miss.
Conclusion
Getting your tax return right doesn’t need to be a stressful, last-minute scramble. The key is planning, keeping solid records, and understanding what the ATO expects. Whether you’re doing it yourself or working with a tax agent, taking a few extra steps now can help avoid penalties and maybe even boost your refund. Do it once, do it properly, and it’ll pay off every year.
Frequently Asked Questions
What Happens If I Lodge My Tax Return Late In Australia?
If you miss the 31 October deadline and aren’t registered with a tax agent beforehand, the ATO can issue a Failure to Lodge (FTL) penalty. This starts at $313 and increases every 28 days the return is overdue, up to a maximum of $1,565. You may also be charged interest if you owe tax. Lodging on time helps avoid unnecessary fines and stress.
Can I Still Claim Deductions If I’ve Lost My Receipts?
Generally, the ATO requires written evidence for deductions, especially for claims over $300. If you’ve lost receipts, you may still be able to claim if you can show a clear pattern of the expense, like bank statements or diary entries. However, without solid evidence, your claim might be rejected. It’s safer to keep digital or paper records throughout the year.
Is It Better To Use A Tax Agent Or Do It Myself?
It depends on your situation. If your finances are straightforward, lodging through myGov is a convenient and cost-effective option. But if you have investments, business income, or multiple income streams, a registered tax agent can help ensure accuracy and maximise deductions. Plus, using a tax agent often gives you more time to lodge.