Paying taxes is a massive responsibility for any citizen. The money we pay in taxes eventually comes back to us in the form of development. So, it’s essential that we pay taxes on time. However, paying taxes is already a complicated process, and not understanding the technicalities can make the process even more complicated. Thus, many people struggle when opening a tax account in eastern suburbs.

Opening a tax account is the first step to paying taxes. However, you need to keep a few things in mind to have a seamless experience when paying taxes. In this article, we’re going to discuss a few things you need to know before you get a tax account in the easter suburbs.

What is a Tax Account is Eastern Suburbs:

A tax account generally refers to the account you use for managing your taxes. From sending your documents, paying the money, lodging your tax returns and receiving the refund, the entire process is done through your tax account.

How to Open a Tax Account is Eastern Suburbs:

Opening a tax account is no challenging task. You can get your tax account running in a few minutes without any hassle. You can use the Australian Taxation Office app to get an account while sitting at home. You can use the app to do everything if you have all the information readily available.

Things to Do Before Opening a Tax Account in Eastern Suburbs:

Opening your tax account is the first step to paying taxes. However, paying taxes is a hard task, and it’s important that you know everything beforehand. Here is a list of a few things you need to know before opening a tax account in eastern suburbs:

Research:

While we can’t stress this enough, you need to research everything before you start paying taxes. There are a lot of factors that you need to know beforehand. These include when you start paying taxes in Australia, how to pay taxes, the legal affairs, the rules and regulations, etc. The more research you do, the more prepared you are for opening your tax account in eastern suburbs.

Most of the necessary information about taxes is available on the internet, check the available resources and keep notes if necessary. The knowledge you manage now will be invaluable in the long run.

Know When to Pay Taxes:

A lot of people don’t know when to start preparing for taxes and when to start paying. As a result, they face fines and penalties for their delay. So, it’s essential to be punctual while paying taxes.

The fiscal year in Australia ends on the 30th of June every year. Then you have a few weeks to prepare the documents, file your taxes and once you know how much money you’re supposed to pay, pay your taxes. 

Find Out How Much You Need to Pay:

While taxes are very technical, you can always estimate how much you need to pay. Every year, the Australian Government reveals the range for a different amount of taxes. Checking that can help you find out how much money you need to pay as taxes against your income. However, there are certain additional factors regarding taxes that you can’t determine only from the range. Having an idea about the range can be very beneficial before opening a tax account in eastern suburbs.

Consult a Tax Accountant:

Whether you’re a service holder or an entrepreneur, a tax accountant can really change the way you pay taxes for good. Tax accountants have years of experience in fields of taxation and tax management. As a result, their knowledge of taxes is priceless.

Your tax accountant can look into your documents and tell you what changes you need to make for your taxes. They’ll help you avoid fines and receive certain deductions and benefits that you might’ve not known about otherwise. So, always visit a tax accountant once you’re eligible to open a tax account in the eastern suburbs.

Know About Deductions: 

Tax deductions are a great way to reduce the amount of taxes you pay. Generally, the Australian government has subsidized specific fields of work where you receive deductions for your work. If you’re in one of those sections, you will receive deductions based on your income. 

Furthermore, there are certain work-related expenses that you can receive tax deductions on. These include work clothes, home office setups, work-related travel, and certain unique factors to your work that you can’t use outside the tour workplace. 

You need to submit documents are proof of your expenses before receiving deductions. So, make sure you preserve records of any work-related expenses that might bring deductions for you!

Calculate your Taxes:

Calculating how much money you need to pay before opening a tax account in eastern suburbs can be very beneficial. You have to pay taxes based on many factors, including your income from work, assets, investments, and liabilities. So, see how much money you make every fiscal year and how much of it is taxable. You need to put this information in your tax account in eastern suburbs, which might help the long run. 

Find Out Whether you Need to File a Tax Return:

You might need to file a tax return in certain scenarios. Especially if you have received tax-deductible income or you have to apply for deductions. Generally, you have to file a tax return once the tax period ends.

Not lodging tax returns in time can cause some trouble in the long run. Make sure you know whether you have to lodge your tax returns or not.

Conclusion:

Taxes are an important part of our life. Once we’re eligible, we have to pay taxes regularly to make sure things work out for the country. Opening a tax account in eastern suburbs is the first step to that responsibility.

In this article, we’ve discussed a few things that you need to do before opening a tax account in eastern suburbs to make life easier for you. We hope you find this article helpful!

Suppose you’re an Australian resident or someone who’s working in Australia for at least a year. In that case, it’s mandatory that you pay taxes. Taxes are an integral part of your working life, and thus you have to pay them regularly. However, in some instances, you might need to lodge a tax return in eastern suburbs for your taxes as well.

Taxes are essential for many reasons; they keep the economy stable and enables the government to take on different plans for their citizens. Thus, taxes are necessary for both the taxpayers and the government. Also, not paying taxes in time is a federal offence that can lead to a fair bit of legal trouble.

You might wonder why you need to lodge a tax return after completing all the painstaking tasks involved with paying taxes? In this article, we’re going to discuss the technicalities and the situations when you’re eligible for tax returns. Let’s begin!

What are Tax Returns in Eastern Suburbs?

A tax return is a document that you have to submit to your taxation office after the financial year is over, and you’re done paying taxes. Your tax return should contain all the necessary information about your taxes. These include your income from your workplace, investments, and businesses. You also need to provide details about your assets and the amount of money you’ve paid in the form of taxes. 

Furthermore, if any amount of your income has already been deducted as taxes before tax, or if you’re supposed to receive any amount of deductions on your tax, you need to put that in your list as well. 

After you’ve submitted your list, the taxation authority will look into your documents and give your verdict. Whether you’re eligible for tax deductions or you’ll need to pay additional taxes will be determined after evaluating the tax return you’ve lodged.

However, not everyone has to file a tax return, you’re only supposed to file it under certain situations.

Eligibility for Tax Returns in Eastern Suburbs:

Your eligibility for lodging tax returns in eastern suburbs depends on multiple factors. These include:

Non-Resident Australians:

If you’re not an Australian non-resident, you might have to lodge a tax return for any amount of money you make in Australia. If you’ve any amount of money over 1AUD, you’ll have to lodge a tax return for it. 

However, Suppose your only income source is from interest, investments, and assets. In that case, it’s not mandatory for you to submit a tax return for yourself if the non-resident withholding tax has been withheld already.

However, once you’re eligible to become an Australian resident, you will be able to apply for tax deductions on any tax you pay after lodging your tax returns.

Tax Returns in Eastern Suburbs for Working Holiday Makers:

If you’re working in Australia with the Working Holiday Maker visa, you might also need to lodge a tax return. However, it’s slightly different from other non-resident tax return rules.

If your taxable income is less than $37001AUD, then you won’t have to lodge a tax return for your payments. However, if your taxable income is above that threshold, you have to lodge a tax return for it. 

However, unlike non-residents, you cannot claim deductions on additional taxes when you’re on a working holidaymaker visa.

Australian Residents:

For Australian residents who work in Australia, they will have to lodge a tax return in the eastern suburbs if you make a certain amount of income. If your taxable income was higher than the tax-free threshold, you have to lodge a tax return to the relevant authority. 

However, we recommend that you consult a tax accountant to understand the technicalities of your taxable income and then decide whether you need to lodge a tax return or not.

Tax Deductible Income:

In some workplaces, you receive your payment after tax has been deducted. In that case, you have to show proof on your tax returns. Any amount of money that has been deducted from your income as tax needs to be shown in your tax returns. Otherwise, you might have to pay more taxes than necessary.

If you’re leaving Australia for at least one year:

If you’re planning to leave Australia for at least a year, you’d need to lodge a tax return of your income beforehand. This is important for receiving your visa to your destination and receiving the necessary clearances. 

So, if you’re planning to leave for any reason, you have to submit your tax returns. However, if you’re still not earning and don’t pay taxes, you might have to submit other necessary documents before departure. These also include other financial documents, so keep that in check as well.

Tax Deductions:

In specific workplaces, you receive tax deductions based on your work. The Australian Government has subsidized multiple sectors, so you might receive tax deductions when you’re working in any of these when you file a tax return in eastern suburbs.

Certain work-related investments, such as home office setup, specialized workplace training, travel, work-related clothes, etc. are considered eligible for tax deductions. However, these are extremely technical and require a great deal of evaluation.

Also, you need to provide adequate proof of your purchases and investments in these fields to be eligible for tax deductions. Suppose you’re eligible for such and have documents to prove it. In that case, you can lodge a tax return in eastern suburbs to get deductions.

Conclusion:

Although paying taxes feels like too much work, it’s important to pay taxes in time. Because of the legal complications that follow are far worse. Furthermore, filing a tax return can give you a plethora of benefits that can help you.

In this article, we’ve discussed the cases for which you’re considered eligible for filing a tax return. We hope you find this helpful!

Running a small business comes with its own share of stress. One of the most significant issues of small businesses is the lack of manpower. Since you don’t have many people to work for you, managing everything can be a daunting task. Things get even more complicated if you have employees, and that’s where the payroll systems in the eastern suburbs come into the discussion.

Generally, employees are more concerned about their payments when working for a small business than a large one. Because of the competitiveness of the market and the uncertainty of the business world, it’s normal for them to feel concerned about the regularity of their payments. However, with a good payroll system in the eastern suburbs, you can ensure regular payment for your employees without any hassle.

However, when you’re choosing payroll systems in the eastern suburbs, you need to ensure they provide a few features. In this article, we’re going to discuss these mus-have features for you!

What are Payroll Systems in Eastern Suburbs?

A payroll system generally refers to software used to keep track of your employees’ payments. They monitor the necessary details like the employees’ working hours, regular payments, frequency of payment, bonuses, employee benefits, insurance, etc., to help you pay your employees in time as well as maintain and procure documents during taxation and audit. 

Types of Payroll Systems in the Eastern Suburbs:

Generally, there are two kinds of payroll systems available. These include:

Online Software Based Payroll System in Eastern Suburbs

Online payroll systems have recently become very popular. They’re generally accessed through the service provider’s website, s you can access them from any computer from anywhere. Furthermore, all the information is stored in cloud storage, so you won’t need space in your own system.

However, online payroll systems in the eastern suburbs can be a bit troublesome. Because you’d need to pay for regular subscriptions as well as cloud storage fees to keep your information in place.

Computer Program Based Payroll Systems in Eastern Suburbs:

If you don’t want to pay for an online program, then getting a computer program based payroll system can help. For that, you need to purchase and download the payroll system on one designated computer.

One advantage of the computer program based payroll software is that you don’t have to pay a lot of money. One-time purchase fees or subscription costs are enough. Since the information will be stored on your computer, you won’t have to pay for an expensive cloud storage subscription.

Must-Have Features for Payroll Systems in the Eastern Suburbs:

Integration with the Available Tools:

Suppose you have an accountant service or outsourced CFO services for your business. In that case, your payroll system should work coherently with them. Your system should comply with all the necessary requirements so that all your stakeholders can work comfortably.

So, before you get payroll systems in the eastern suburbs, discuss your business’s other stakeholders. Ensure they comply with all your needs and the payroll system is comprehensive enough to work with their needs.

Scalability:

When you’re running a business, your priority should be growth. Even if you have a few employees now, you’d have more employees in the future. The payroll systems in the eastern suburbs you’re using should be scalable enough work even when your manpower increases. 

You should prioritize scalability because it will ensure that you can use a single service for a long time instead of shifting services repeatedly. Because shifting comes with its own share of problems.

Book-keeping:

Your payroll service should have some sort of book-keeping or record-keeping features. They should store data of the money that’s being paid in the form of wages and all the necessary details. 

These records will be crucial when paying taxes; you might be eligible for certain tax deductions if you provide your information in time. Generally, payroll systems store this information in your computer storage or cloud storage. So, always make sure this information is stored accordingly.

Access to Streamlining:

Having a robust payroll system helps to keep your employees happy. One advantage of having payroll systems in the eastern suburbs is that you can access the information without any hassle if your payroll system has streamlining features.

Streamlining refers to providing information to your employees on a specific portal. Your employees can sign in and see all the relevant details on their payment. These include their wages, benefits, deductions, etc. 

Streamlining can help your employees receive their information faster, thus saving your employees from a fair bit of hassle.

Security:

Your payroll information is very sensitive. Information such as your companies expenses, taxes, personal information of the employees is very sensitive. So, you need to make sure the payroll services for eastern suburbs you’re receiving has high-level security mechanisms.

You have to take a few factors into account for your security. These include powerful encryption for the specific database, cloud-storage protection, or password protection for the offline features.

If your payroll systems provider has streamlined services, then make sure the employee access portal is safe and free from any anomalies. Your employee protection should be your priority.

Taxation:

Your payroll information is crucial when it comes to taxation. There’s a lot of paperwork involved in tax, and your payroll information needs to be submitted as well. Your payroll systems in the eastern suburbs should be able to help you during taxation. Things such as managing paperwork, fining documents, and making relevant calculations should be done by your payroll service.

Conclusion:

The key to the growth of a company is happy employees. The best way to keep your employees satisfied is by providing them with regular payments and benefits, and that’s why you need payroll systems in the eastern suburbs.

A good payroll system will help your business in more ways than one. From payments to taxes, everything is simplified. However, the goal should be to get the best service available. In this article, we’ve discussed six services a payroll provider must-have. We hope you find this helpful!

Paying taxes regularly is an integral part of our civic responsibilities. The money we pay in the form of taxes is eventually spent on welfare activities. So, it’s important to pay our taxes on time! But the question for any Australian might be, “When do you start paying taxes in Australia?”

Just like everything else, there’s a correct time for paying taxes. You have to be eligible in certain criteria to pay taxes. You have to pay your taxes in time to prevent any legal jeopardy in the long run. Furthermore, paying taxes in time comes with its own share of benefits in the form of deductions and subsidies. 

In this article, we’re going to discuss certain factors that play a role on when do you start paying taxes in Australia. Let’s begin!

When Do You Pay Taxes in Australia?

When you pay taxes, depend on a lot of factors. These include age, minimum income, residence, etc. Here’s everything you need to know about them!

What Age Do You Start Paying Taxes in Australia:

You have to reach a certain age to be eligible to pay taxes. In Australia, everyone under the age of 18 is considered a minor, and aren’t eligible for taxes. However, certain people are exempted from this list and are supposed to pay taxes regularly.

However, certain people are considered to be “excepted person” who are supposed to pay taxes based on their income. These include people who have managed to complete their formal education and are currently doing full-time jobs. You’re also supposed to pay taxes if you’re disabled and received support from disabled trust, and you’re the main beneficiary. Also, for people who are “double orphans”, i.e. lost both of their parents and rely on the double orphan pension, you have to pay taxes accordingly.

Furthermore, certain income is considered to be excepted income which is taxable even if you’re under 18. These include revenue from assets and investments, pension and superannuation funds (if you have any via inheritance), or have your own business running. 

If you receive any sort of excepted income, you have to pay taxes based on it. However, they are somewhat technical, so we recommend that you consult your tax lawyer or tax accountant before going with the taxes. 

Minimum Income:

The most common answer to when do you start paying taxes in Australia is whenever you’re eligible. However, the conditions are different for different groups of people.

If you’re an Australian resident, you will be eligible for taxes if you make more than 18,200AUD per year, according to the new guidelines by the Australian Taxation Office. 

The amount of taxes to be paid by Australian residents in this fiscal year is:

Foreign Residents:

Individuals who live in Australia due to their work commitments are also supposed to pay taxes on their annual income at the end of every fiscal year. However, the rules are slightly different for foreign residents.

So, when do you start paying taxes in Australia as a foreign resident? Check the table to find out!

However, as a non-Australian resident, you have to lodge a tax return for any amount of money you make in Australia. You might also be eligible for some additional fees based on your tax return.

However, once you receive Australian resident status through the residency test, you can apply for tax deductions on your initial expenses. Generally, you’re considered an Australian after 183 days of living in Australia. So, make sure you check all your residential details beforehand.

Working Holiday Makers:

Working holiday makers are people who work as in Australia temporarily under the visa subclass 417 or 462. Since they’re temporary residents, they are considered for different taxation laws. 

The taxation rules are somewhat more stringent on working holiday makers since they’re staying only for a brief period. Also, just like non-resident Australians, they have to lodge tax returns on any amount of money they make during their time in Australia. 

The range and amount of payable taxes on working holiday makers are:

Conclusion:

Paying taxes is essential for everyone. Whether you’re an individual or a business, you have to pay taxes if you’re eligible. However, many people aren’t sure about taxes and hence make mistakes or delay their payments.

In this article, we’ve answered the question of when do you start paying taxes in Australia. We hope you found this helpful!

For small businesses, financial management is a key issue. The budget is always very tight, and there’s a lot of room for error. Making the slightest error can cause a lot of trouble in the long run, and that’s where getting outsourced CFO services help.

Generally, small businesses don’t have the financial capability to hire a financial expert full-time. However, having an expert to support your finances can take your business to the next level. However, receiving outsourced CFO services can be somewhat technical. In this article, we’re going to discuss everything you need to know about outsourced CFO services to help you make your decision. Let’s begin!

What is an Outsourced CFO Service?

Outsourced CFO services refer to consulting a certain company or individual that has expertise in financial matters. They provide you with expert advice, suggestions and help your business find its groove. 

Generally, a CFO is a person who takes over all the financial matters of a business and micro-manages all the ins-and-outs of that business. However, since small businesses don’t have considerably experienced finance experts or the financial means to hire an expert, they can reach out to an outsourced CFO service for help.

Services Provided by Outsourced CFO Services:

Helps to Find Stability:

Businesses often go through rough patches. Whether that’s struggling with the lack of finances or improper financial management, struggles are prevalent in the world of business.

A financial export understands these situations and knows how to tackle these. As a result, he can easily show your business to get out of these sticky situations, eventually giving your business the stability it needs.

Short and Long-Term Planning:

The key to survival for a business is to plan for its future. However, considering how uncertain the business world is, planning efficiently is the key. With an experienced CFO at the helm, you can get short term and long term forecasts of the market and ideas on how you should make the best of it. Having a proper idea about the future can help your business survive any uncertainty coming in its way.

Financial Reporting:

Understanding your companies reports and making decisions based on them is another benefit you can get from outsourced financial services. Suppose you have multiple products available in the market. However, not every product is providing your preferred output, that’s where your outsourced CFO services play their role.

To begin with, the financial expert can see the policies enacted by your products and provide valuable suggestions. He’ll conduct in-depth research and provide reports on why certain products are performing worse than the others, and how to get a better outcome from these products.

Budgeting:

Having a clear budget helps to make your future financial plans. Consulting an outsourced CFO service, you can get help regarding your account for a number of years.

The CFO will take a few things into account, such as current expenses, investments, assets and liabilities, payroll management, etc. and chalk up a financial plan that will help you sustain your business for a few years. 

Having a clear budget means you know how much money you need to spend to make your business grow and sustain. As a result, you can easily find investment ideas in the long run.

Structuring and Raising Capital:

How much money you have as your capital is crucial for your business. You need to find the right combination of assets, debts and liabilities to make your business stand out. A good CFO can help you find the right spot that protects your business as well as accelerates growth. Also, having an idea about capital can massively help during taxation.

Furthermore, experienced finance professionals have a plethora of connections and networks that they can connect your business to. These will ensure more potential for your business as they get more potential investors to improve its capital.

Pros of Outsourced CFO Services:

Cost-effective:

Having outsourced CFO services mean that you don’t have in-house staff to pay for. As a result, you don’t have to pay extra costs such as insurance and employee benefits. For a small business, these benefits can really save a fair bit of money for your business.

Reduced Workload:

As the head of your business, it’s your responsibility to manage everything. However, having someone to share the workload can really make your life easier. Having an experienced CFO managing your finances can reduce your businesses’ additional hassle of financial management, thus reducing your shoulders’ workload. Allowing you to focus on your work.

Time-efficiency:

Small businesses generally suffer from a lack of manpower. As a result, it takes time to manage certain things that could otherwise be done much sooner by a group of professionals.

When you’re getting outsourced CFO services, you’re also getting a team of experts to manage your financial matters. As a result, you can save up on a fair bit of time from managing everything.

Cons of Outsourced CFO Services:

Hidden Costs:

When you’re hiring an agency for outsourced CFO services, prepare for some additional costs. While this isn’t a case for every company, certain companies might charge you higher than usual or add extra costs over the initial fees in certain fields. So, preparing beforehand is a good idea.

Lack of Freedom:

Although this is entirely subjective, a lot of people personally struggle with the addition of people who aren’t in-house employees. When you’re getting an outsourced CFO service, you’re essentially handing over a crucial part of your business to an expert. Many people might find this limiting to their business, and eventually, find it hard to work. 

So, if you’re someone who enjoys taking decisions and working at your own pace, getting outsourced CFO services might do more harm than good.

Conclusion:

For people running small businesses, every decision is crucial. Miscalculating the smallest of steps can be disastrous in the long run. And when it comes to something as technical as finances, there’s a lot of complications involved.

Getting outsourced CFO services can really benefit your business in specific scenarios. In this article, we’ve discussed all the technicalities of outsourcing your CFO services to help you out!

Self Managed Super Funds Pros and Cons in Australia:

One day or another, all of us will have to retire. Life after retirement can be complicated since there is no stable income source. Our savings and investments will be our only option for financial stability. In order to protect Australians from financial struggles in the future, the Australian government ensures superannuation funds for its citizens. In this article, we’re going to discuss self managed super funds pros and cons to help you out!

Self managed super funds can be beneficial for many. However, a lot of people would not benefit from it. So, knowing everything in depth is important before making an investment. So, let’s find out all the details about superannuation and self managed super funds.

What is a super fund?

Super funds, also known as superannuation, are guaranteed payment schemes provided to each Australian citizen once they reach their retirement age. During your working years, your employer will deposit a part of your income to your guaranteed superannuation.

Once you reach your retirement age, you can avail yourself of the money in your super funds and use it. You can choose weekly or monthly payment schemes to receive instalments. Furthermore, you can make additional payments to your super funds, or use the money to invest in ventures like our first house or medical bills.

Generally, your employer manages your super funds. He’ll open your superannuation account through a super provider or a bank and pay your instalments regularly. However, you can also choose the kind of super account for you or get a self managed super fund. 

What is a Self Managed Super Fund?

In a self managed super fund, You can take control of your superannuation fund and make all the decisions about it. Here, you act as a trustee to your super, so you can easily make decisions about your super.

When you take a regular superannuation scheme, you have to choose your superannuation provider’s policies and rules. These decisions might not always favour you. However, when we’re discussing self managed super funds pros and cons, one of the biggest advantages is that you’re a trustee to your own funds. As a result, your decisions regarding your money is valued the most.

Types of Self Managed Super Funds:

Self managed super funds can be of two kinds, these include:

Corporate Trustee Super Fund:

You can create a self managed super fund through a company. In that case, the company acts as the trustee for your super funds. All the stakeholders are considered to be directors. They can make necessary decisions regarding the superannuation funds and other technical aspects.

In this case, the company will work based on your decisions, and you won’t have to put in any extra effort.

Individual Trustee:

You can also opt to be an independent trustee along with people you trust. In that case, everyone in the superannuation plan will be considered trustees. You need a minimum of two trustees for a self managed super fund to work like that. 

In this case, every decision will be considered a combined decision and affect everyone’s funds accordingly. Also, since no company is a trustee for you, you might need to get yourself involved in matters such as permissions and paperwork.

Self Managed Super Funds Pros and Cons:

Pros:

• Control Over Your Money:

One of the most significant advantages of a self managed super fund is that you have complete control over your money. You can decide what to do with your money without any hassle. This is extremely beneficial if you plan to invest your super funds somewhere. If you plan on making investments with your super funds, you can do it easily if you control them yourself. Furthermore, certain risky decisions aren’t supported by companies that you can take yourself.

• Quick and Easy Decision Making:

You might often need to make certain decisions to better utilize your money. These include investing in specific fields that can give you more profit as well as staying away from certain investments that won’t be useful in the long run.

When you have access to your own super, you can make decisions any time you want without going through a lot of paperwork. However, we recommend consulting a financial advisor before making any decision.

• Lower Management Cost:

According to the Australian Taxation Office, the costs for managing a self managed super fund is only 0.5% of the total cost of the superannuation funds. Which is considerably cheaper than consulting an agency and paying regular fees to keep everything in check. 

Furthermore, your management costs reduce as your superannuation funds increase. This means that you will have to pay less if your fund is big or you have multiple trustees in the same fund. 

Cons:

• Time Consuming:

Unlike conventional super funds, self manages super funds are very time-consuming. Since you’re the one managing everything, it takes a fair bit of time for you to manage everything. So, it takes longer than company-provided super. So, if you want everything to be fast-paced, self managed super might not be a good idea for you.

• Lack of Government Compensation Schemes:

There are specific government schemes that you’re not eligible for if you self manage your super funds. This is due to the lack of access to dispute regulatory bodies when compared to companies. 

So, make sure to look into all the schemes and paperwork before investing in a self managed super fund. 

• Involvement of Market Risks:

When discussing self managed super funds pros and cons, you have to take into consideration that your co-trustees might not have a background in finance and tax management. As a result, you might not be able to understand all the paperwork involved. So, make sure you do your research right.

Conclusion:

Your super funds can be your key to a stable retired life. For this reason, managing your super wisely is very important. If you want to manage your superannuation by yourself, you have to know the self managed super pros and cons. We’ve discussed all the technicalities of self managed super in this article. We hope you found this helpful!

Whether you’re an Australian citizen or a foreigner residing in Australia, you have to pay taxes if you’re eligible. Although taxes are a complicated process, they’re important in the long run. Also, not paying taxes in time can cause a fair bit of legal trouble for you as well.  So, knowing how tax returns work is important.

One of the most essential parts of paying taxes in Australia is to file a tax return once you’re done paying taxes. It’s a complicated process because there’s a lot of paperwork involved. However, paying tax returns properly can be beneficial for you in a lot of ways. You might often wonder how tax returns work and why it is important to file tax returns.

In this article, we’re going to discuss everything you need to know about tax returns in Australia to give you an idea. Let’s begin!

What is a Tax Return?

A tax return is a document you submit to the Australian Taxation Office at the end of every fiscal year. The document contains all the relevant information about your taxes. These include how much money you made in the year, your assets, your superannuation funds, the amount you paid in taxes, etc. Furthermore, you also need to provide information about your additional income and any tax deductions you’re eligible for. However, you’ll only have to lodge a tax return if you’re eligible for it.

How do Tax Returns Work?

Your tax returns help the authority determine the technicalities of your taxes. Once you file a tax return, the authority goes through your documents. It determines whether you’ve paid the accurate amount of taxes based on the paperwork you provide.

Once the details are calculated, the tax officials will let you know whether you need to pay any additional taxes based on your income and assets. Furthermore, the deductions you’ve claimed in your form will also be evaluated, and you’d receive the amount of money you’re eligible for. 

Eligibility for Filing Tax Returns:

Not everyone is supposed to file tax returns. There are specific criteria that you need to fulfil to be eligible for tax returns. These include:

For Australian Residents:

For Australian residents, you have to lodge tax return documents if you have any tax deductions to avail from your payable tax. Furthermore, if your income exceeds the tax-free threshold or you have income from assets, investments other than your current job. Also, if any of your payments were already tax-deducted, especially for independent contractors or people who work on a temporary basis.

Furthermore, suppose you’re planning to leave Australia for at least one fiscal year. In that case, you’d have to lodge tax returns and adequate paperwork of your departure. 

For Non-Australian Residents

So, you might wonder how do tax returns work for non-residents in Australia? Actually, it’s not complicated at all. For non-residents, they have to lodge tax documents for any amount of money they make. However, they have to be working in a proper job in Australia to be eligible for it.

However, if your only income from Australia was investments for non-residential projects or you’re a working holidaymaker (417 or 462 visas) you won’t have to lodge any tax return documents. But if your payments exceed the 37001AUD benchmark, you will have to lodge a tax return with all the documents.

Once you fulfil the requirements to be considered an Australian resident, you might be eligible to apply for tax deductions based on the tax you paid on your time as a non-resident. However, these involve some technicalities and might not be available for everyone. 

When to File Tax Returns?

Now that we know how tax returns work, we have to lodge our tax return paperwork at the right time. In Australia, the fiscal year ends on 30th June. You’re eligible to file tax returns after 1st July up to 31st October

However, you have to ensure that you’ve paid your taxes and have all the documents prepared by then. Not filing tax returns after being eligible for it can cause legal troubles in the long run.

How to Lodge Tax Returns?

Filing tax returns can seem a bit complicated at times due to its nature. Firstly, you have to make sure you have all the documents prepared and ready before the end of the fiscal year (30th June). 

Firstly, you can use the tax return tool to determine whether you’re eligible for tax returns or not. Make sure to put accurate and correct information for correct results. Afterwards, if you’re eligible, you have to submit your documents.

The simplest way to lodge tax returns is by using the myTax section of the myGov app. You have to register at myGov and access the myTax section. Afterwards, you can submit the necessary documents, attach the required paperwork and fill the form for a seamless submission.

Otherwise, you can also collect a tax return form and fill it up manually. Once you’ve filled it up, you can send it to the necessary authority for evaluation. Although this is a bit more tedious, you can use it if you don’t have access to soft copies of certain documents. 

For a more secure option, however, you can reach out to a tax accountant for help. They’ll manage all your necessary taxation papers at once. From making tax-related documents to making essential applications, a tax accountant will do everything for you.

However, you have to ensure that you’re investing in the right accountant. Your accountant needs to have the necessary certificates and accreditations to be eligible to deal with your paperwork.

Conclusion:

Paying taxes is a complicated process. The documents and paperwork can make it seem overwhelming for you. Also, since tax returns are something you submit after taxes are over, most people overlook it. Thus, missing out on its benefits.

In this article, we’ve discussed how do tax returns work in Australia to give you an understanding of it. We hope you found this article useful!