Information provided by the Commonwealth Bank.
WITH the end of the financial year fast approaching, there is a lot of talk about tax scales and filing tax returns. The focus is very much on adults and full-time professionals, but what about youths. Many will be filling out their first tax return.
The following Taxation Tips are designed to assist young people and first-time tax return lodgers with some valuable information.
Tax tips and hints
What is a tax file number (TFN)?
A tax file number is a unique number issued by the Australian Tax Office. Only one TFN is issued to an individual for their lifetime. Once a person has a TFN, there is no need to apply for another.
How to Iget a tax file number?
The easiest way is to visit the Australian Taxation Office website www.ato.gov.au and download an application form.
Get a tax file number when you turn 15 and have it available to your employer when you start a new job.
If you have more than one full-time or part-time job, remember you can claim the tax-free threshold with your first nominated employer.
Pay slips are your proof
Make sure you keep your pay slips so you can check them against your payment summary (group certificate) at the end of the financial year.
When do I have to pay tax?
The financial year runs from 1 July each year until 30 June. You need to make sure you put your tax return in by 31 October. Your employer should be taking enough tax out of each pay.
Does this mean I should be saving up to pay a tax bill?
No. Your employer should be taking enough out of each pay. If they are doing this right, generally you should owe little or no tax at the end of each financial year.
Do I have to lodge a tax return if my income is from investments?
You are required to lodge a tax return when your investment income exceeds $772 in a financial year.
What if I have a small business, like a lawn-mowing job?
If you are self-employed, you may be able to claim for travel and car expenses. But you must keep all receipts across the year.
What kind of work clothes can I claim?
You generally can’t claim the clothes you wear to work, but if you have to wear protective clothing, or you have a compulsory uniform, you may be able to claim a portion of the cost. Once again, you will need receipts for this.
Can I claim for sun-protection items?
If you work outdoors, you can claim for some of the costs of sunscreen lotion, sunglasses and hats. Make sure you keep your receipts.
Always check your assessment.
Check your assessment carefully when you receive it back from the Tax Office.
What if my payment summary doesn’t look right?
You can lodge a complaint if you believe the Tax Office has made a mistake.
Once I have completed my tax return what should I do?
Keep a copy of the return and all the working papers you used when preparing the return. You may need them if you are audited.
What if I can’t do my own return?
Visit a tax agent. The cost is tax deductible and most tax agents lodge their returns electronically which means refunds can be processed on average within 14 days.
For further information, visit www.dollarsandsense.com.au.
