How to Apply for a Tax Return in Australia: Step-by-Step Guide
Published on July 22, 2025
Applying for a tax return in Australia is a key part of managing your finances each year. For many, the idea of preparing and lodging a tax return can feel confusing, especially with ever-changing rules and new online services. But with the right preparation and understanding of the process, it doesn’t have to be stressful. This guide will walk you through every step, helping you lodge your tax return confidently and avoid common mistakes, whether you choose to do it yourself or use a registered tax agent.
Understanding Your Tax Return Obligations
Before you begin, it’s important to know if you need to lodge a tax return. In Australia, the financial year runs from 1 July to 30 June, and most people who earn money during this time need to complete a tax return. If your total income, including wages, investment income, dividends, and government payments, is above $18,200, you must lodge your own tax return. Even if you earn less, you may still need to lodge a tax return if you had tax withheld from your pay, received government payments, or are a sole trader.
If you don’t need to lodge, you should still tell the ATO by submitting a non-lodgment advice. This is a simple way to let them know you’re not required to lodge a tax return for the year.
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Essential Documents and Preparation
Gathering your details before tax time will make the process smoother. Here’s what you’ll need:
Tax File Number (TFN): Your TFN is your unique reference for all tax matters in Australia. If you don’t have one, you can apply for free on the ATO website.
Income information: This includes your wages, any money from investments (such as interest or dividends), and payments from government agencies. Most employers now report this information through Single Touch Payroll, so your income details are pre filled in your online service by late July.
Receipts and records: Keep receipts for any work-related costs you plan to claim as deductions. Examples include uniforms, tools, or home office expenses. You’ll need these to prove your claims if asked.
Health fund details: If you have private health insurance, have your policy details ready.
Bank statements: These can help you track interest, dividends, and other income not pre filled by your employers or banks.
Creating Your myGov Account and Linking to the ATO
To lodge a tax return online, you’ll need a myGov account. If you don’t have one, setting it up is free and takes about 20 minutes. Just visit the myGov website, create an account, and use your email address and a strong password. Once your account is active, you need to link it to the Australian Taxation Office. This connects your myGov account to the ATO’s online service, giving you access to your tax information and the ability to lodge your return.
If you need help, the ATO website has step-by-step guides. You can also use the ATO app to manage your tax affairs on your phone.
Lodging Your Tax Return Online
With your myGov account linked to the ATO, you can use the online tax return service, known as myTax, to lodge your own tax return. The process is designed to be simple, even if it’s your first time.
Start your tax return: Sign in to myGov, go to your linked services, and select the ATO. From there, you can start your online tax return.
Check pre filled information: Most of your income, including wages, bank interest, and dividends, will already be included. Review this to make sure all your income is listed.
Add missing details: If you have income or deductions that aren’t pre filled, you can add them manually. This might include money from side jobs, investment income, or expenses like work-related travel.
Claim deductions: You can claim for costs related to your job, such as uniforms, tools, or home office expenses. Make sure you have receipts to prove these claims.
Review and submit: Before you lodge, check all your details to make sure nothing is missing. Once you’re happy, sign and submit your return. It’s free to lodge online, and most people get their refund within two weeks.
If you’re a sole trader or have more complex tax affairs, you might want to use a registered tax agent. There is usually a fee for this service, but a professional can help you maximise your deductions and make sure your return is accurate.
What Happens After You Lodge
After you lodge, you can track your refund using the ATO app or your myGov account. Most online tax returns are processed quickly, and you’ll receive any refund directly into your bank account. If you owe money, the ATO will let you know how much and when to pay.
Tips for a Smooth Tax Time
Prepare early: Gather your records before tax time so you’re ready when it’s time to lodge.
Keep good records: Save your receipts and bank statements for at least five years.
Double-check your details: Make sure all your income and deductions are included before you submit.
Ask for help if you need it: If you’re unsure about any part of the process, consider using a registered tax agent or accountant. They can help you understand complex situations and make sure you’re claiming everything you’re entitled to.
Penalties and Deadlines
The deadline to lodge your own tax return is 31 October. If you use a registered tax agent, you may have more time, but you need to contact them before this date. Late lodgment can result in a penalty, so it’s best to lodge on time.
Example: First-Time Lodger
If it’s your first time lodging a tax return in Australia, the online service is designed to guide you through each step. You’ll need your TFN, income details, and any receipts for deductions. The myTax system will pre fill most of your information, and you can add anything that’s missing. Once you’re done, you can sign and lodge your return online, and track your refund through the ATO app.
In Summary
Lodging a tax return in Australia is a straightforward process if you prepare in advance and use the online services available. Most information is pre-filled, and you can claim deductions for work-related expenses. If your situation is complex, a registered tax agent can help. Remember to lodge by the deadline, keep good records, and use the ATO’s free online tools to make tax time easier.
This guide is designed to help you understand each step and feel confident about lodging your own tax return, whether you’re an employee, sole trader, or receiving government payments. With the right preparation, you can complete your tax return accurately and on time, leaving you free to focus on what matters most.
Lukasz Klekowski
