It’s the most magical time of the (financial) year, tax time. It’s when we scrounge up our receipts, lodge our tax returns with the Australian Taxation Office (ATO) and maybe if we’re lucky, receive a nice juicy tax refund. 

If this is your first time flying solo (aka mum, dad, or your tax-savvy sibling isn't stepping in this year), or you just want to finally understand what the heck you’re lodging, here’s the Flux breakdown.

What even is a tax return?

Not to be confused with your tax refund, your tax return is the official form you submit to the ATO after June 30 every year. It tells the ATO what your taxable income was for the previous financial year - and whether you paid too much (or too little) tax. 

Basically, the formula goes: Taxable income = Assessable income – Tax deductions

In your return, you’ll declare all your assessable income, which might include:

• Salary from your job(s)
• Interest or investment earnings
• Capital gains (looking at you, crypto traders)
• Pensions
• Most government payments (like Centrelink)
  
  

And then subtract your tax deductions, which might include:

• Work-related expenses
• Charitable donations
• The cost of managing your tax (yes, accountants count!)
• Any post-tax super contributions

So if you earned $80K (pre-tax) but had $3K in tax deductions, your taxable income becomes $77K. Meaning you might’ve paid a bit too much tax (hello, refund!) 

What can I actually claim as a tax deduction?

This is where it gets kinda fun. You can reduce your assessable income by claiming certain expenses…usually work related but there are a few exceptions!

Generally, to claim a deduction, you’ll need to tick three boxes:
✅ You paid for it yourself (your boss didn’t reimburse you)
✅ It relates directly to earning your income
✅ You’ve got the receipts—literally

So no, you can’t claim your Oodie collection, unless you can convince the ATO it’s a uniform🫠

Some common deductible expenses:

• WFH expenses (like that Wi-Fi you use on Zoom calls and your IKEA standing desk)
• Work-related car and travel expenses
• Accommodation if you’re travelling for work
• Tools, gear, or equipment
• Uniforms or industry-specific clothing (plus the dry cleaning)
• Upfront study fees

If it’s helping you earn an income and you paid for it out of pocket, it’s worth checking if it’s deductible.

Other deductible expenses that are NOT work related include charitable donations to registered charities (we talk all about in this article), and post-tax super contributions. 

How (and when) do I actually lodge my tax return?

The fastest way to lodge your tax return—and unlock that sweet refund—is through the ATO’s myTax tool via myGov.

The good news? Most of your info will already be pre-filled by your employer, all you have to do is double check it.

BUT don’t hit "lodge" the second the clock strikes July 1. It can take a couple of weeks for your income statement to be finalised (especially if you’ve got multiple jobs or investments). The ATO reckons late July is a safer bet.

You’ll know you’re good to go when your income statement is marked ‘Tax ready’ in myGov.

So there you have it, tax time isn’t just about paperwork and stress-snacking. It’s your annual chance to take control of your money, claim back what’s yours, and maybe even give future you a little financial head start.  💸✨

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