Tax Return End of Financial Year

EOFY, or End of Financial Year, is an acronym that refers to the end of the financial year in Australia. It occurs on June 30th each year and holds great significance for businesses and individuals in terms of financial management and tax obligations. EOFY is an opportune time to assess your financial situation, review your income sources, expenses, assets, and liabilities, and gather all the necessary information for filing your tax returns.

Content

How to Return your income Tax

The fiscal year in Australia runs from July 1st to June 30th.

In Australia, the requirement to pay tax applies to individuals who have an Australian bank account or who earn income through employment or other sources.

To fulfill your tax obligations, you need to obtain a tax file number (TFN) and lodge an annual tax return with the Australian Taxation Office (ATO). The tax year in Australia, also known as the financial year, begins on July 1st and ends on June 30th of the following year.

During this period, you are responsible for reporting your income and providing relevant information to the ATO. You are required to lodge a tax return each year.

• an employee,
• self-employed,
• a sole trader,
• or earn income from investments,
• rental properties,
• or other sources.

This involves declaring your income and claiming deductions or offsets that you are eligible for, which can help reduce your overall tax liability. It's important to keep accurate records of your income, including payment summaries from employers or income statements from other sources.

You should also maintain documentation to support any deductions you plan to claim, such as receipts for work-related expenses, charitable donations, or investment costs.

Once you have gathered all the necessary information, you can complete and lodge your tax return through the ATO's online platform, myTax.

myTax

Ways you lodge your income tax return

If you choose to lodge your income tax return yourself, you can do so online through myTax. It is important to note that the deadline for filing your tax return is October 31st of each year.

If you decide to engage a registered tax agent to assist you with your income tax return, it is recommended to initiate the process and start working with the tax agent before October 31st. This ensures that there is sufficient time for the agent to review your financial information, prepare the necessary documents, and submit the tax return on your behalf.

Additionally, in Australia, both individuals and businesses can use accounting software to assist in preparing tax returns. Representative companies are: Xero accounting software is built for small businesses. Automate management and work anywhere, anytime.

xero accounting software app

• Xero - Try Xero for free now
• MYOB: Mind Your Own Business
• QuickBooks
• Reckon
• Sage

End Of Financial Year

By adhering to the October 31st deadline, whether you choose to lodge the return yourself or through a registered tax agent, you can ensure timely compliance with the tax requirements and avoid any potential penalties or late lodgment fees. EOFY is an ideal time to consider tax-saving strategies,

• maximizing deductible expenses,
• exploring superannuation contributions,
• taking advantage of available government incentives or rebates.

It's essential to stay informed about the latest tax regulations, thresholds, and changes that may affect your financial obligations. By being proactive and well-prepared for EOFY, businesses and individuals can streamline their financial processes, meet their tax obligations efficiently, and make informed financial decisions for the future.