Outline of Tax Return in Australia

Generally, the due for tax returns in Australia is scheduled every October 31st for the year that ends on June 30th within the same calendar year. This means that the financial year would run from July 1st until June 30th. This is not the same like what the US has of which the fiscal year is from October 1st until September 30th. Of course, the due date extensions are also given. This is particularly intended for those whose tax return is submitted through a tax agent. The tax returns can be submitted through post or electronic method with the help of the software known as ATO e-Tax.

Outline of Tax Return in Australia

The taxation system of Australia can be considered quite complicated. This is a thought that is supported by the reality that around 80% of Australian hires a tax agent so as to get assistance for tax return preparation. Read http://ezinearticles.com/?Your-Tax-Return—How-the-Tax-Return-Process-Works&id=1940136

The businesses in Australia are also required to settle their taxes of all levels. This includes taxes if local, state and federal level. These are taxes to cover for the public service delivery like road maintenance and for hospital system.

The tax law in the country has stringent requirements in terms of tax returns. Returns should be submitted by the business structure and its operating conditions.

Income Tax

Australian Federal Government imposed the income tax. It is consistent across the states. Before WW2, it was the state government who imposed income tax. This serves as the most essential tax that gives the greatest contribution to the revenue of the public.

A company needs to lodge their tax return. The company’s income tax is no t the same as the personal income tax of each person. In the return, it will show information about the net income of the company. This is the amount of the income minus the allowed deductions.

The Trust needs to lodge tax return of trust to specify the income. The expenses and deductions are not included. The trust beneficiaries should report any sort of benefit or income acquired from the trust. This would include the income of the wages, rental income and dividends as well.

The partnership should submit partnership tax return. This would include the net income acquired that can be computed through the subtraction of the deductions and expenses from the gross amount of income. Aside from that, each partner needs to report their share of the partnership income, wage, dividends and rental income as well. This will be on their individual tax return filed.

The sole traders are those who operate their business in the owner’s name. Their income that is taxable or loss should be reported in their own return. Also, they need to file for other form of income like any wages, rental income, and dividends less the allowed deductions that will be claimed against these figures.

The partnership and sole trader tax returns are both needed to promote the income as individual and not as a corporate entity. The individual taxes are computed on a progressive scale and not similar to the tax rate of corporate level that is a flat percentage across the entire income range.…

How to Do Your Taxes: Basic Guide for Beginners

While April (the tax month) may seem far away, it’s important to think about your taxes today. This is especially true if this is your first time to file. Filing of tax is not a simple process. It requires a lot of planning, thinking, and computing. And if you’re new, you might get overwhelmed with the process, which can result to making costly mistakes. That’s why it’s better to get prepared before the tax season comes. The following are some tips to help you prepare and ensure that your taxes get done properly.

Do Your Taxes

Familiarize yourself with the language.

One of the many things that makes the tax filing so hard is the tax language. Even if you have the forms at your hands and complete documents at your side, if you don’t understand what a withholding allowance or even a tax refund is, you’ll get a difficult time to do your taxes. So before doing anything else, learn first the different terms involved in tax. Some of the basic terms that you should know are the following: taxable income, withholding allowance, tax refund, tax exemption, tax bracket, and tax deductions.

Organize your documents.

Before the tax season approaches, you should have all the required documents ready and in order. This will help you make the filing much easier because you will no longer need to dig through your files, which can be time-consuming and frustrating. In addition, having your tax records and documents ready will give you the ability to spot errors sooner and figure out if something is still missing. Depending on your specific financial situation, these documents can include W-2s, 1099-MISC, 1099-Bs, 1098s, receipts from your medical expenses, and records from your IRA contributions

Learn about tax rules.

There’s no need for you to be a tax expert, but it pays to have some knowledge about tax rules. Keep in mind that tax rules and codes change frequently; if you fail to follow the correct tax rules, you will be charged costly penalties. And if you know the rules, you’ll also become aware about the available benefits that you can claim. So before you file your tax return, it’s a great idea to update your tax knowledge to determine if there are tax credits you can claim and how much are you going to deduct on your return.

Consider getting professional help.

As you know, tax filing is complex. And this is not to mention the complicated tax rules that you need to understand. If you find yourself having a difficult time to do your own taxes, you can consider getting help from the experts. Yes, it will cost you a little bit of money, but it’s an investment that’s worth making since it will help you do your taxes properly. When you hire a professional, you’ll less likely make an error, which can save you thousands of dollars in the long term.

For more information about taxes, as well as further guide on how to prepare and file your tax returns, visit taxreturn247.com.au.