Lodging Your First Tax Return: A Simple Guide for Beginners
Lodging your first tax return can feel confusing, but it's a simple process once you know how. This guide is designed for first-timers—whether you're a student, a new resident, or just starting your first job. We'll walk you through why you need to do it, what you can claim, and how to get it right.
Do I Need to Lodge a Tax Return?
You are likely required to lodge an Australian tax return for the financial year (1 July – 30 June) if:
- You had tax withheld from your wages (check your payslip).
- Your taxable income exceeded the $18,200 tax-free threshold.
- You are an Australian resident for tax purposes and earned any income at all.
Even if you earned less than $18,200, you should still lodge a return if any tax was taken out of your pay, as you will get it all back as a refund.
Getting Ready: What You Need to Lodge
Being prepared makes the process quick and easy. Before you start, gather these documents:
- Your Tax File Number (TFN): This is essential. If you've lost it, you can find it in your myGov account linked to the ATO or on your payment summary from your employer.
- Payment Summaries / Income Statements: Your employer(s) will finalise your income details through Single Touch Payroll (STP). This information will be pre-filled in your myGov account (usually by mid-July). You can also check your final payslip.
- Bank Interest Statements: From any savings accounts you have.
- Receipts for Work-Related Expenses: Keep any receipts for items you bought for work (we'll cover what counts below).
- Details of Any Other Income: This could include money from government payments, investments, or a side hustle.
How to Lodge Your Return: The Two Main Ways
There are two primary ways to lodge your first tax return. Both are connected to the Australian Taxation Office (ATO).
1. Do It Yourself Online via myGov
This is the most common method. It's free, relatively simple, and the ATO's online system guides you through it.
- Step 1: Set up a myGov account if you don't have one (www.my.gov.au).
- Step 2: Link your myGov account to the Australian Taxation Office (ATO). You will need your TFN and some personal details to do this.
- Step 3: Once linked, select "Lodge my tax return" from the ATO services menu. The system will often have your income from your employer(s) already pre-filled. You just need to check it and add any deductions.
2. Use a Registered Tax Agent
A tax agent (or accountant) can do it all for you. They are experts who can ensure you claim everything you're entitled to.
- Cost: They charge a fee (which is itself tax-deductible next year).
- Benefit: This is a great option if your situation is complex, you're short on time, or you just want the peace of mind.
- Important: Always use a registered tax agent. You can check an agent's registration on the Tax Practitioners Board website.
What Can I Claim? Common Deductions for First-Timers
You can claim a tax deduction for money you spent that relates directly to earning your income. You must have spent the money yourself (not been reimbursed) and you must have a receipt to prove it.
Common first-time claims include:
- Work-Related Clothing: Cost of compulsory uniforms (with a logo), protective clothing (e.g., steel-capped boots, hi-vis vest), or occupation-specific clothing (e.g., black pants for hospitality).
- Home Office Expenses: If you worked from home, you can claim a portion of your running costs. The easiest way is the ATO's fixed rate method (67 cents per hour).
- Self-Education: Course fees and textbooks if the study directly relates to your current job (e.g., a certificate for your current role).
- Tools and Equipment: Items you bought for work (e.g., a tradesperson's tools, a laptop used for work).
- Travel Between Jobs: Costs of driving from one workplace to another (but not your regular travel from home to work).
What you cannot claim:
You cannot claim personal expenses like everyday clothes, travel from home to work, or coffee and lunches during your break (unless you were required to work away from your usual workplace).
What Happens After You Lodge?
- Notice of Assessment: After you lodge, the ATO will send you a Notice of Assessment. This is not a bill. It's a summary that shows your taxable income, the tax you owed, the tax you already paid, and your final result (a refund or a bill).
- Getting Your Refund: If you are due a refund, it will typically be deposited into your bank account within 2 weeks of lodging online. The ATO will notify you through myGov when it's on its way.
- If You Owe Money: If the assessment shows you have a tax debt, the notice will tell you how much and the payment due date.
First Time Tax Return FAQs
Q: I only worked a casual job for part of the year. Do I still need to do a return?
A: Yes, if any tax was withheld from your pay. Lodging a return is how you get that withheld tax back.
Q: What is the tax-free threshold?
A: It is the amount of income you can earn each financial year without paying any income tax. For Australian residents, it is $18,200.
Q: I'm scared I'll make a mistake. What should I do?
A: The ATO's online service through myGov is designed to be user-friendly. If you're really unsure, using a registered tax agent for your first time can be a worthwhile investment for your peace of mind.
Q: What if I don't have a receipt for something?
A: As a general rule, you cannot claim a deduction without a receipt. The ATO can ask for evidence for up to five years after you lodge.
Q: When is the deadline to lodge?
A: The deadline for doing it yourself online is 31 October. If you use a registered tax agent, you can lodge much later (often through May of the following year), as the agent has a special lodgment schedule.