What is a tax return?

A tax return is the annual statement that Australian taxpayers lodge with the Australian Taxation Office to declare their income, deductions, and other tax-related details for the financial year ending 30 June. The return is used to calculate the actual tax owed for the year and to reconcile that against the PAYG tax already withheld from wages.

Tax returns are due between 1 July and 31 October each year for individuals lodging on their own. Taxpayers who use a registered tax agent generally have until 15 May the following year, provided they engage the agent before 31 October. Returns can be lodged online through myTax (a free service in myGov), through a registered tax agent, or through Tax Help, a free service for low-income earners run by ATO-trained volunteers between July and October.

The return covers all sources of income earned during the year: salary and wages, allowances, interest, dividends, rental income, capital gains, foreign income, business profits, and certain Centrelink payments such as JobSeeker Payment and Parental Leave Pay. Deductions can be claimed for expenses directly related to earning that income, including work-related travel, uniforms, tools, self-education, donations to registered charities (Deductible Gift Recipients), and the cost of managing tax affairs. Records must be kept for five years from the date of lodgement.

Most refunds are paid within two weeks of lodgement, directly into the taxpayer's nominated bank account. Tax bills are due 21 November (or the date set by the agent's lodgement programme). The ATO's pre-fill service automatically loads most wage, interest, dividend, government payment, private health insurance, and superannuation details by mid to late August, so many taxpayers wait until then to lodge a more complete return. Special rules apply for international income, negative gearing on rental properties, capital gains tax events, and tax offsets such as the low-income tax offset and the seniors and pensioners tax offset.