When do I have to submit my tax return by?
Individuals not using a tax agent will need to submit their tax return by 31 October.
Individuals who use a tax agent will likely get an extension until mid May the following year (however some factors may mean your lodgement date is earlier).
How do I calculate the tax I should pay?
The income bracket you fall into will determine how much tax you will need to pay (see below table which outlines each income bracket and its corresponding tax rate).
*The ATO also has a handy online calculator to help calculate your tax for you.
| Resident tax rates 2022–23 |
| Taxable income |
Tax on this income |
| 0 – $18,200 |
Nil |
| $18,201 – $45,000 |
19 cents for each $1 over $18,200 |
| $45,001 – $120,000 |
$5,092 plus 32.5 cents for each $1 over $45,000 |
| $120,001 – $180,000 |
$29,467 plus 37 cents for each $1 over $120,000 |
| $180,001 and over |
$51,667 plus 45 cents for each $1 over $180,000 |
The above rates do not include the Medicare levy of 2%.
For a quick calculator we like https://jaws.tips/stuff/taxcalc.html
What’s the tax-free threshold?
The tax-free threshold in Australia is $18,200.
As noted on the ATO website, if you’re an Australian resident for tax purposes, the first $18,200 of your yearly income isn’t taxed. You can claim the tax-free threshold to reduce the amount of tax that is withheld from your pay during the year.
Note: you can only claim the tax free threshold for one job at a time – if you work two jobs and don’t let one of them know that you don’t want to claim the tax free threshold you will be under-taxed throughout the year and end up with a tax bill to pay at the end.
Do I need to register my business for GST?
The ATO states that you must register for GST:
- when your business or enterprise has a GST turnover (gross income from all businesses minus GST) of $75,000 or more
- when you start a new business and expect your turnover to reach the GST threshold (or more) in the first year of operation
- if you’re already in business and have reached the GST threshold
- if your non-profit organisation has a GST turnover of $150,000 per year or more
- when you provide taxi or limousine travel for passengers (including ride-sourcing) regardless of your GST turnover – this applies to both owner drivers and if you lease or rent a taxi
- if you want to claim fuel tax credits for your business or enterprise.
Registering for GST is optional if your business or enterprise doesn’t fit into one of these categories. If you choose to register, generally you must stay registered for at least 12 months.
Do I need to complete Business Activity Statements (BAS) for my business?
If you are a business registered for GST you need to lodge a business activity statement (BAS).
Your BAS will help you report and pay your:
- goods and services tax (GST)
- pay as you go (PAYG) instalments
- PAYG withholding tax
- other taxes.
Most businesses will report and pay on a quarterly basis.
More information can be found on the ATO website.
Do I need to pay the Medicare Levy Surcharge?
In addition to the Medicare levy, you may have to pay the Medicare levy surcharge (MLS) if you, your spouse or dependant children don’t have an appropriate level of private patient hospital cover and your income is above a certain amount.
More information can be found on the ATO website.
When will I receive my PAYG Payment Summary?
Businesses are required to give each of their workers a payment summary by 14 July each year, even if the withheld amount is nil.
With the introduction of Single Touch Payroll payment summaries are now issued electronically directly to your MyGov account.
More information can be found on the ATO website.
How long do I need to keep my tax records for?
Records must be kept for five years from the date you lodge your tax return.
More information can be found on the ATO website.
Can I make extra payments into my Superannuation?
You can add to your super by entering into a salary sacrifice arrangement with your employer, making personal super contributions, transferring super from foreign super funds or you may be eligible for government contributions.
There are limits on how much you can contribute to your super each year.
More information can be found on the ATO website.
I’d like some help with my tax return. What’s the process of engaging one of your accountants?
Working with us is easy! Rather than standing in queues at your local shopping centre or needing to book lengthy appointments at your tax agents office, we offer a completely online tax return service. We’ll supply you with a checklist, where you can attach all the information we’ll need from you from the comfort of your home. We’ll then process your tax return for you.
To get started, simply complete our Contact form and we’ll be in touch.
