A straightforward guide to doing your own tax return.
Online tax return
Up for channelling your inner accountant? Then you could try doing your own tax return using myTax, the Australian Taxation Office’s (ATO) own online return.
What is myTax?
It’s available to all individuals and sole traders, it’s simple to set up and use, and – best of all – it’s free, which could save you from spending money on the services of a tax professional. A lot of the required information can be sourced automatically and pre-filled in your return, making it more accurate as well as saving you time. Better still, the ATO claims that submitting a return online via myTax will deliver any refund owing to you within a couple of weeks. Here’s how it works.
How to get started
The first thing you need is a myGov account. Track down your unique tax file number (TFN), then log onto my.gov.au. Follow the instructions to create an account. Once that’s set up, you can then sign in and follow the next set of instructions to link to the ATO. This is where you’ll need to confirm some personal details and your TFN. If you can’t find it, have a look at your payslip, or any correspondence from an accountant, super fund or the ATO, which will often quote it somewhere. If all else fails, call the ATO help centre for assistance.
How myTax works
One of the main benefits of using myTax is that much of the information you’ll need for your tax return can be pre-filled by the ATO. It gathers info from sources such as your employer, super and health funds, government agencies like Centrelink, investments from share registries and interest payments from banks. It also checks some information from your previous tax return. The important thing – if you want the ATO to do much of the work for you – is not to jump onto your online return too soon after the end of the financial year; give it until late July to ensure most of the pre-fill information has been uploaded. You don’t have to lodge your return until October 31st, so there’s no big rush to complete it.
How to use myDeductions
You’ll likely have expenses to claim as a tax deduction; you can do this manually, of course, and add the relevant figures to your return yourself. You’ll need to keep evidence, such as receipts, and if you’re claiming vehicle expenses, a logbook of your business travel.
A quicker and easier approach – especially if you’re prone to stuffing paper receipts in your glove box – might be to keep a digital record using the myDeductions tool in the ATO app. Get into the habit of always logging everyday work-related expenses and when the time comes, you can upload all the relevant data from myDeductions to myTax to be seamlessly added to your return.
Don’t forget: when you scan your PowerPass card at the Bunnings Trade Desk (or ‘Check Out’ in the app), your receipt will automatically be saved into your eReceipts in the PowerPass app. Watch the handy video called ‘Search & share eReceipts’ to see how it’s done.
How to personalise myTax
No two tax returns are going to be the same so the first time you use myTax, tailor your return to suit your own circumstances – for example, if you receive dividends, you can tick the relevant box on the ‘personalise return’ screen and that particular section will appear on your return for you to complete. You can tweak the information for future years, so for example, if you later sell your shares and no longer receive dividend payments, you wouldn’t need to select that box.
Identify the type of business you have
It is possible to do small business tax through myTax if you’re a sole trader and your tax affairs are relatively straightforward. It’s just a matter of completing the business section on the online form to identify the type of business you have, your income for the year and any expenses. This could include depreciation for any capital purchases above the threshold for the current financial year. To work this out, the ATO’s depreciation and capital allowances tool is a handy helper.
Just one thing to remember – as quick and easy as myTax may be when it comes to compiling your income and expenses for the year, people can still make mistakes. So, it’s important to check your return carefully before you lodge it, to make sure that the pre-filled information is all present and correct and that you’ve claimed all the deductions you’re entitled to.
Disclaimer:
The information in this article is general in nature. It doesn’t take into account your specific financial position, needs or circumstances. You should look at your own financial position, objectives and requirements and seek professional advice before making any financial decisions.
Gear up for tax time
Find out all about What tradies can claim on tax.
Photo Credit: Austock
