Tax can be complex and it’s certainly unavoidable. This master tax guide 2024 will provide you with all the information you need to successfully wrap up this year’s tax season and lodge your personal tax return.
Here’s what we cover in this tax guide:
- What is tax?
- What is a tax accountant?
- How do you pay tax?
- How much tax do you pay?
- Lodging a return
- 2024 tax changes
- Income tax brackets
What is tax?
Taxes are used to finance government expenditure. In Australia specifically, it’s used to fund the public health system, the education system provided by the State, and public facilities such as parks and playgrounds. Taxes contribute to the establishment and the maintenance of these structures.
By utilising the accumulated funds, the Government is able to provide a number of additional services to the country. These services include funding for the national defence force, the maintenance and upkeep of roads and rail infrastructure, as well the payment and support of disaster relief and government funded pension pay-outs.
What is a tax accountant, and do you need one?
In this tax guide 2024, you could think of tax accountants as industry heroes – ready to help you with the often loathed task of completing your personal tax return. We’re experts with the knowledge you need on all types of tax deductions and how it applies to your personal needs.
Tax season is complicated enough, why would you choose to go at it alone? A registered tax accountant, like creditte, can provide you with tax saving strategies, answers to your difficult questions, and can advise you on all other things pertaining to your tax. Are you a few years behind on taxes? We can also get you up to date with any outstanding returns.
Choosing to use a registered tax accountant will simplify your tax affairs, ensure your submissions are 100% correct, on-time, and will help you access any refunds due to you.
Tax is a broad subject that often has minor amendments throughout the year, particularly when new governments come in. As tax experts, we keep track of what’s happening, so you don’t need to. That means we can offer you the correct advice and minimise any errors that could potentially arise when lodging your return.
How do you pay Tax in Australia?
You may find yourself wondering how to do your tax return. Before you can begin paying tax you’ll need a Tax File Number (TFN). You can apply for this, free of charge from the ATO.
You can apply for a TFN if you are an Australian citizen, have an Australian passport, and if you are 15 years or older. You can also apply for a TFN if you are a resident within Australia and you don’t have an Australian passport, if you’re a foreign resident who resides in Australia, and if you do not live in Australia but have an Australian-sourced income.
You may also be required to obtain an Australian Business Number (ABN) if you own a business with an aggregated annual turnover of more than $75,000 per annum.
How to do your tax return online
You can lodge your tax return online with myTax, but you’ll need a myGov account, linked to the ATO. You can also access online individual tax payer services via the ATO app.
You also have the option of lodging via a paper submission but these tend to take a lot longer for the ATO to review. The best way to do a tax return is to use a registered tax agent. Contact the team at creditte where we’ll provide you with expert guidance and a speedy tax solution.
How much tax do you pay in Australia?
If you are employed by a business, your tax will be deducted by your employer from your monthly salary. As to exactly how much tax you would pay depends on the tax bracket you fall into and a few other variables such as:
- Your tax residency. Where you currently live, or where you’re going to be moving to outside of Australia, can impact your tax.
- If you have more than one job and the nature of each job you work. i.e, Whether your work is full time, part time or freelance.
- If you have a tax file number.
In your individual capacity, you are required, and are responsible for filing personal tax returns if you work as a freelancer, a sole trader, or if you own your own business. If you operate as a sole trader or partnership you will include the income your earn from your business in your own personal tax return. If you have set up a company or trust, you’ll need to lodge a separate return for your business.
Taxable income brackets
The taxable income thresholds for the years 2023-24 are as follows:
| Taxable Income | Tax On This Income |
| 0 to $18,200 | Nil |
| $18,201 to $45,000 | 19c for each $1 over $18,200 |
| $45,001 to $120,000 | $5,092 plus 32.5c for each $1 over $45,000 |
| $120,001 to $180,000 | $29,467 plus 37c for each $1 over $120,000 |
| $180,001 and over | $ 51,667 plus 45c for each $1 over $180,000 |
These amounts are applicable to the 2022/2023 financial year as well.
Lodging a Tax Return
If you’re an Australian resident, you are eligible to lodge a tax return if you had any tax amount paid for the tax season between 1 July to 30 June, or if your income was over the minimum stated above.
Additionally, if you are a foreign resident and have earned $1 or more in Australia during the tax year or you are leaving Australia permanently or for more than one tax year, you are liable to lodge your tax during this tax season.
Tax Season 2024
The tax season for the 2024 financial year officially begins on 1 July, 2024. The due date for those without tax agents is 31 October, 2024. Those with a tax agent will be eligible for the tax agent lodgement extension which can be up to 15 May 2025. The ATO will begin processing all tax returns for the year 2023 to 2024 on 7 July 2024. If, as an individual, you are eligible to receive any refunds, you could expect payment at any time from 16 July 2024 onwards.
Simplify your tax burdens
There’s an easier way to submit your tax. Chat to the team at creditte for expert advice. We’ll take tax off your hands this year and at the same time make sure you’re claiming all your deductions. Click to contact the team.
