Lodging a tax return in Australia: what to prepare
Australia’s financial year runs from 1 July to 30 June. After the financial year ends, you have a period of time to lodge your tax return with the ATO. The exact deadline varies depending on how you lodge — yourself or through a tax agent. Check at ato.gov.au for the deadline that applies to your situation.
Lodging a tax return is when you and the ATO reconcile: how much tax you paid during the year, and how much you actually needed to pay. If more was withheld than needed, you get a refund; if less, you pay the difference.
The prefill system — the ATO knows quite a lot about you
The ATO receives information from many sources: employers, banks, super funds, and other organisations with a reporting obligation. When you open your tax return through myTax (the ATO’s online lodgment tool), much of the information is already filled in — your wages from your employer, your bank interest, your super details.
This does not mean there is nothing for you to do. Prefill does not include the deductions you are entitled to claim yourself: working-from-home costs, work-related training, and tools of your trade. If you skip these, you may pay more tax than necessary.
Records to keep through the year
The most useful habit is to keep receipts and notes throughout the year, rather than scrambling to find them at the end:
Working-from-home costs: If you work from home part of the time, the ATO has specific methods for calculating the deduction. You need to keep a diary of your hours worked at home, or use a fixed-rate method according to ATO guidance — check ato.gov.au to see which method suits your situation.
Tools and work equipment: Laptops, phones and tools of your trade bought with your own money and used for work — keep the receipts and note the proportion used for work.
Work-related training: Courses, books and professional registrations related to your current job (not to prepare for a new career) — these may be deductible.
Work-related car costs: Travelling from home to your usual workplace is generally not deductible — but travelling between work sites or carrying bulky equipment may be.
The point is not to memorise every rule, but to keep the evidence, and look it up or have a tax agent confirm it.
What prefill does not cover
Beyond work deductions, some items you need to declare yourself:
- Income from extra work, online selling, or freelance work
- Rent from a house or room you let out
- Investment income (shares, crypto and so on)
- Foreign income, if you are an Australian tax resident
If you have income beyond your main wage, this is the point to consider using a tax agent — not because it is complex, but because mistakes can lead to penalties later.
myGov and myTax
myGov is the government services portal — you need a myGov account to use myTax, the ATO’s online lodgment tool. Creating a myGov account and linking the ATO is a practical step to take as soon as you are settled.
It is also where you view your tax history and super, and receive notices from the ATO.
When to use a tax agent
You are not required to use a tax agent — many people lodge through myTax themselves without any problem. A tax agent is useful when:
- You have income from several sources or a complex situation
- You are unsure about your deduction entitlements
- It is your first time lodging a tax return in Australia and you want to be sure it is right
A tax agent must be registered with the Tax Practitioners Board (TPB) — you can check the registration at tpb.gov.au. Tax agent fees are not fixed, and are usually deductible in the following year.
For more, see the related guide on when to see a tax agent, accountant or financial adviser.