The Law Handbook 2024

Chapter 5.5: Taxation 399 Which tax return do you file? Individuals In most cases, you will be required to complete an ‘income tax return for individuals’ form if you are: • a salary or wage earner; • a pensioner; • on unemployment benefits; or • self-employed. The Individual Tax Return Instructions 2023 has copies of forms, instructions and an outline of the relevant tax provisions to assist you to prepare your forms. If you are the legal personal representative of a deceased person (e.g. the executor of a person’s estate), you must complete a ‘date of death’ return for the period up to the date of their death. The form used for this is the ‘tax return for individuals’ form. You then need to apply for a TFN for the estate and complete a ‘trust tax return’ on behalf of the estate for each income year until its administration is completed. More information about the responsibilities and liabilities of executors is on the ATO’s website (www.ato.gov. au/individuals-and-families/deceased-estates/doing- trust-tax-returns-for-the-deceased-estate/when-and- how-to-lodge-returns-for-a-deceased-estate) . Businesses Businesses also need to file annual tax returns. If you are carrying on a business, you also need to complete a Business Activity Statement ( BAS ). The BAS is used for the majority of your tax obligations including your business income and your PAYG and Goods and Services Tax ( GST ) reporting requirements (see ‘Goods and Services Tax’, below). While some businesses are required to lodge their BAS quarterly or monthly, others only need to lodge a BAS annually. If you earn investment income or carry on a business but are not required to be registered for GST, you need to complete an Instalment Activity Statement ( IAS ). Like the BAS, the IAS is used for reporting your tax obligations, such as company income tax, PAYG and Fringe Benefits Tax ( FBT ). For more information about the BAS and IAS, visit the ATO’s website (www.ato.gov.au) . Filing your tax return Tax returns are due on 31 October each year. If you cannot meet this date, lodge an extension application with the ATO. This must be lodged before the due date and the application should state your reasons for requiring an extension. Tax agents are allowed to spread their work over the working year. As a result, one advantage of using a tax agent to lodge a return is that for many taxpayers, the return does not have to be lodged until later than 31 October. This date varies depending on the characteristics of the taxpayer. The ATO publishes details of its lodgment program each year on its website. However, when you use a tax agent for the first time you must complete a form provided by the tax agent, preferably prior to 30 November. The Individual Tax Return Instructions 2023 (see ‘Tax resources’, above) explains how to lodge a return. If you lodge a paper return, it takes up to 50 business days after lodgment to finalise your tax return. Alternatively, you can lodge your return online using myTax. When lodging your tax return using myTax, you are required to create an account with myGov and link your account to the ATO. The myGov portal links all your information held by multiple government agencies into one account. To register for myGov, visit www.my.gov.au. Taxpayers using myTax will find their tax returns pre-prepared by the ATO with information already included, including salary and wages, interest, dividends, Centrelink payments and private health insurance details. As most of the information from your employer, bank and government agencies is not pre-filled until late August, the ATO recommends you wait until late August to lodge your return using myTax. The lodgment can be done at your convenience, as myTax is available at any time, and you will get your refund faster (generally within two weeks) than if you lodge a paper return. MyTax can do everything that the ATO’s former e-tax service could do, and more. The myDeductions data from the ATO app automatically loads into your return. There are new tools to record depreciation and capital gains, and you can lodge or amend prior returns. MyTax also includes fully integrated tools and calculators, and helpful messages to guide you through lodging your return. Once the ATO has completed your assessment, a notice setting out the details is posted to you. If you are entitled to a refund, the notice will indicate this and either a cheque will be attached, or a bank account you have specified will be directly credited with the amount. Where you are required to pay