Frequently Asked Questions

You may still need to lodge a tax return even if you earned less than the tax-free threshold if you: had tax withheld from payments made to you, are eligible for the seniors and pensioners tax offset, have a reportable fringe benefits amount, received income from a trust, or had other specific circumstances. Use the ATO’s ‘Do I need to lodge a tax return?’ tool to check.

You should keep records for 5 years including: payment summaries, bank statements, receipts for work-related expenses, dividend statements, interest statements, and records of any other income or deductions you want to claim. Digital records are acceptable if they’re clear and legible.

Yes, you can claim work-from-home expenses using either the fixed rate method (67 cents per hour) or actual cost method. You need to keep a record of hours worked from home and ensure the expenses are directly related to earning your income. You cannot claim expenses your employer has reimbursed.

If you’re lodging your own tax return, it’s due by 31 October. If you use a registered tax agent, you may get an extension. We recommend lodging early once all your information is available, typically from late July when most pre-filling is complete.

Late lodgment can result in penalties. The failure to lodge penalty is $330 for individuals ($1,650 for medium and large companies). You may also face additional penalties and interest on unpaid amounts. Contact the ATO immediately if you’re going to be late.

You can claim the work-related portion of mobile phone and internet expenses. If you use your phone/internet for both work and private use, you can only claim the work-related percentage. Keep records of your usage to support your claim.

Companies must lodge their tax return by the 15th day of the 5th month after the end of their income year. For companies with a 30 June year-end, this means returns are due by 15 May. Companies using a registered tax agent may receive an extension.

The company tax rate depends on your company’s turnover. Small companies (less than $50 million turnover) pay 25%, while larger companies pay 30%. Base rate entities may qualify for the lower rate if they meet specific conditions about passive income.

Companies with instalment income over $8,000 in a year generally need to pay PAYG instalments. The ATO will send you an instalment notice if you need to pay. These are quarterly payments toward your expected annual tax liability.

Companies must keep records for 5 years including: financial statements, general ledger, bank statements, invoices, receipts, contracts, employment records, and depreciation schedules. Records can be kept electronically if they meet ATO requirements.

Business expenses must be incurred in gaining or producing assessable income and must not be capital, private, or domestic in nature. Keep proper records including tax invoices for GST-registered suppliers. Common deductions include rent, utilities, employee wages, professional fees, and equipment costs.

Late lodgment penalties for companies start at $1,650 and can increase significantly. The failure to lodge penalty continues to accrue until the return is lodged. Companies may also face director penalty notices and additional compliance costs.

An SMSF is a private super fund that you manage yourself with up to 4 members. All members are trustees (or directors if there’s a corporate trustee) and are responsible for complying with super and tax laws. SMSFs give you more control over investment decisions but also more responsibility.

SMSF annual returns are due by 28 February following the end of the financial year, unless lodged by an approved SMSF auditor or tax agent who may have an extension. The return must include the annual audit report.

SMSF costs typically range from $2,000 to $5,000+ annually, including administration, audit, accounting, and legal fees. The ATO supervisory levy is $259 per year. SMSFs generally become cost-effective with balances over $200,000-$500,000.

SMSFs can invest in most assets including shares, managed funds, term deposits, bonds, and property. However, there are restrictions – you cannot buy assets from related parties (except listed shares and business real property), and investments must meet the ‘sole purpose test’ of providing retirement benefits.

Yes, SMSFs must be audited annually by an approved SMSF auditor who is independent of the fund. The audit must be completed before lodging the annual return. The auditor checks compliance with super laws and provides an audit report.

Non-compliance can result in penalties, additional tax, or loss of complying fund status. Common penalties include administrative penalties (up to $12,600), education direction penalties, and in serious cases, the fund may lose its tax concessions.

A BAS is a form used to report and pay GST, PAYG withholding, PAYG instalments, and other tax obligations. Most businesses registered for GST must lodge a BAS quarterly, though some may lodge monthly or annually depending on their turnover.

You must register for GST if your business turnover is $75,000 or more ($150,000 for non-profit organisations). You can voluntarily register for GST even if below these thresholds. Registration allows you to claim GST credits on business purchases.

BAS due dates depend on your lodgment frequency: Monthly BAS – 21st of the following month; Quarterly BAS – 28 days after the quarter end (28 Oct, 28 Feb, 28 Apr, 28 Jul); Annual BAS – same as income tax return due date. Electronic lodgment may provide additional time.

Keep records of all sales and purchases including tax invoices, receipts, bank statements, cash register tapes, and credit card statements. For GST purposes, you need proper tax invoices for purchases over $82.50. Records must be kept for 5 years.

Yes, if your GST credits exceed your GST payable, or if your PAYG withholding credits exceed your other obligations, you may receive a refund. Refunds are usually processed within 14 business days if lodged electronically.

Late BAS penalties are $330 for small businesses and up to $1,650 for larger businesses. The penalty applies for each period the BAS is late. There’s also a failure to pay penalty of up to 20% per year on unpaid amounts, plus general interest charge.

Not all sales are subject to GST. GST applies to most goods and services, but some supplies are GST-free (like basic food, some medical services, education) or input-taxed (like residential rent, financial services). Check the ATO website for specific GST treatment.