Here is some useful information about tax basics and everything you need to know.
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:
And then subtract your tax deductions, which might include:
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:
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. 💸✨
Disclaimer: All information contained in the Flux app, www.flux.finance, www.joinflux.com, app.flux.finance and any podcast of Flux Media Pty Ltd (ABN 27 639 804 345) is for education and entertainment purposes only. It is not intended as a substitute for professional financial, legal or tax advice. While we do our best to provide accurate information on the podcast, we accept no responsibility for any inaccuracies that may be communicated.
Flux does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) and ASIC RG 36.66. Flux Technologies Pty Ltd provides general advice on credit products under our own Australian Credit Licence No. 530103.
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