EP - 23 Talking About Tax

On this episode, we are talking about tax. Firstly, why we pay tax. Tax is money that people, and businesses pay to the Australian Government. The money we collect helps pay for services including, health, education, defense roads and railways, social security and other payments from Centrelink.

What income is taxable? Your taxable income is your assessable income minus your tax deductions. Income that is taxable, Income that you must pay tax on includes money from, employment, pensions and annuities, most government payments, investments, capital gains, income from trusts, partnerships or businesses foreign income.

What to do with your tax refund?

• Pay Down Debt (Credit Card, Personal or HECS Debt)

• Build up your emergency savings fund

• Save it or Invest it

• Enjoy it – book a holiday

Stats about tax  

• 84% of people lodge tax on time

• $2,574 is the avg refund received

• 33% of people DIY their tax

*Moneysmart Survey 16/17

Deductions       

• Work-related expenses – Travel, uniforms   

• Self-education expenses

• Donations

Lodging your tax return in 2018

You can lodge your tax return online using myTax – it’s quick, easy, safe and secure. If you haven’t already set up a MyGov account, you’ll need to create one and then link to the ATO. Visit the ATO website to find out how to lodge online.

Get help from a registered tax agent

If you want to use a professional to do your tax return, make sure you use a registered tax agent. You can check if the agent is registered on the tax and BAS agent register.

Whichever way you choose to lodge your tax return, remember you are responsible for the claims you make, so make sure your deductions are legitimate and you include all your income before you or your agent lodges your return.

*Correction to information discussed in the episode, the Financial year dates are 1 July – 30 June each year.