
Tax Return When Working in Australia

Understanding Australian Tax Returns
The Australian tax year runs from July 1 to June 30, with tax returns due by October 31. The Australian Taxation Office (ATO) oversees all tax matters, and you can lodge your return through their online portal, myTax, or through a registered tax agent.
Claiming Work-Related Expenses:
You can claim deductions for expenses directly related to earning your income.
Everyday deductible items include:
Professional Expenses Work-specific clothing and protective gear Tools and equipment for your job Professional development courses
Home office expenses Work-related phone and internet costs
Professional memberships and subscriptions
Vehicle expenses for work-related travel (excluding regular commuting)
Record-Keeping Requirements
The ATO requires you to keep receipts and documentation for five years after lodging your return. For expenses over $300, you need detailed records. For amounts under $300, you may not need receipts but should still maintain a diary or log of expenses.
Home Office Deductions If you work from home, you can claim:
The fixed-rate method is 52 cents per work hour for electricity, cleaning, and furniture depreciation. The actual cost method is calculated by calculating the work-related portion of all expenses. The shortcut method (introduced during COVID): 80 cents per hour for all home office expenses
Investment-Related Deductions For investment properties, you can claim Mortgage interest, Property management fees, Repairs and maintenance, Depreciation on buildings and fixtures, Council rates and insurance
For share investments: Investment-related subscriptions Internet costs for managing investments Interest on investment loans.
Important points
Maximizing Your Return
Track Everything: Keep detailed records of all work-related purchases. Use a logbook for vehicle expenses. Maintain a diary of home office hours.
Timing Strategies Consider prepaying deductible expenses just before the tax year ends. Purchase necessary work equipment when you have taxable income to offset
Salary Packaging Look into salary sacrifice arrangements for Superannuation contributions, Motor vehicles, Electronic devices for work, Professional memberships
Healthcare Considerations Private health insurance can help avoid the Medicare Levy Surcharge. The private health insurance rebate can reduce your premiums.
Charitable Donations: Donations over $2 to registered charities are tax-deductible. Keep official receipts for all donations
Additional Tips
Use a Tax Agent Consider using a registered tax agent for complex returns. Their fee is tax-deductible in the following year. They can maximize your deductions and ensure compliance.
Stay Informed. Subscribe to ATO updates. Keep track of changing tax laws and new deductions. Maintain organized digital records.
Plan Regular tax planning throughout the year Consider quarterly or monthly record-keeping Set reminders for key tax dates.
Common Mistakes to Avoid
Claiming private expenses
double-dipping on claims
Missing lodgment deadlines
Inadequate record keeping
Not declaring all income sources Claiming deductions without evidence