Taxes are a necessary evil in our society. Generally, the ATO may not be the most popular institution, but it is necessary for the smooth functioning of the economy. This guide is designed to give you all the information about taxes and how they affect your life. Continue reading to learn more.
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Understanding Taxes
The government needs the money to fund their programs and the people to pay for them to get their taxes. However, you must know what you are paying for, how much, and when you should file your taxes.
Generally, the first thing you need to know about taxes is that they are not just one-time events. Taxes happen annually, usually when you file your income tax return by April 15th of the following year. You then receive a notification from the IRS in January or February reminding you of this date.
For the government to take out your taxes from your paycheck (called withholding), there is a W-4 form that needs to be filled out by each employee.
Why Are You Expected To Pay Taxes
All Australian citizens are eligible for decent healthcare systems, high-quality education, good standards of living, and different recreational areas (such as parks and playgrounds) funded by taxation.
Generally, the government collects these through the ATO (Australian Taxation Office) to be able to provide the public services like:
- Health insurance
- Public school
- Defense
- Highways and railways
- Government assistance, relief efforts, and retirement benefits
Is It Necessary To File an Australian Tax Return?
Everyone working in Australia must file an Australian federal return to declare their earnings. Filling these forms out is critical as it helps keep your tax affairs in order, including those seeking another Australian VISA. Fortunately, if you’re diligent with filing your tax returns, you can qualify for tax refunds and get some extra money for yourself!
When Should You File For Your Taxes?
In Australia, the tax year lasts from the 1st of July to the 30th of June, with the final deadline being the last day of October. That means you must ensure you’ve filed your taxes between the first of July and the last day of October.
What Documents Are Needed For Filing Tax Returns?
You’ll need to have specific documents with you when you apply for your tax returns, including:
- Income slip – make sure to keep the latest payslip given
- Invoices for job-related expenses – keep a log of any payments made for work-related items like equipment and courses so you can claim tax relief
- Your Tax Identification Number (TFN)
What’s The Procedure For Filing Tax Returns?
You can approach the ATO independently if you’ve done your research or are familiar with the paperwork. As a result, it’s always preferable to file your returns through agents that’ll help you get cheap tax returns.
You can find experienced global tax specialists to assist you with your tax returns and get the highest claims. Incompass will review your past tax returns to see if they can help you save. When you get a job, you’ll be expected to complete a tax file number declaration, where you’ll share your TFN and other personal data.
The declaration you share will be used to calculate the total tax you’re meant to pay. After this, you’ll have twenty-eight days to complete and return the declaration to your workplace. Failure to do this means the highest amount will be deducted from your salary.
After filling out your declaration, remember to claim the tax-free threshold that’ll exempt a part of your yearly income from taxation. In most cases, you can only get this discount from one job if you have several employers, usually from the highest paying job.
Conclusion
Taxes can be confusing, so it’ll be best if you learn how to file your taxes before getting into the working field properly. That way, you won’t go wrong or end up on the wrong side of the law. Protect your personal information when filing your taxes so as not to get your information stolen.
References:
https://immigrationnewsaustralia.com/heres-everything-you-need-to-know-about-australian-taxes/