What are The Basic Tax Returns in Australia

Tax is a major source of income for the government of any country. If a person is living in Australia and earning dollars, he needs to pay some part of his income earned as tax to the Australian government. The rates of taxes are notified by the government depending upon the profession and nature of assessee. 

A tax return is a statement made by the taxpayers in Australia. All the particulars of income and expenses are mentioned in it to avail deductions and refunds.

Different assessee needs to submit tax return depending upon the nature of income and business. Following are some of the basic returns and their importance  you should be knowing before filing a tax return:

 
Individual Tax Return

Every individual over the age of 18 residing in Australia is required to file a return on 31 October for the previous year.  

A taxpayer in Australia can choose to file the return online or by ordering a physical form of the tax return. If you are unable to file a Tax return by yourselves you can also hire some agent who can file the tax return on your behalf. If you choose to file tax return through an agent, the due date to file a return can be extended later than 31st October. Extensions for deadlines of filing a tax return can be applied for if the tax return Sydney is being filed by a tax agent depending upon the circumstances and reasons thereof.
 
Sole Trader Tax Return

Any person doing any business in Australia has to file a tax return for the income earned through that business. The tax rates are the same for individuals and businesses as well. As of now, for the year 18-19, the income over and above $18200 is taxable in the hands of the business. Above the threshold limit of $18200, the tax rate applied on a progressive basis i.e. more tax for more income.

After completion of the first year of the business, every business should pay tax on a quarterly basis to avoid penalties and fines.
 
Company Tax Return

A company is an association of shareholders, managed by board members. Every penny earned by a company is taxable, there is no threshold limit for a company. Unlike Individuals and sole traders, the tax rate for a company is flat rate I.e. 30 % for 18-19.

Every company is required to report its taxable income, offsets available and credits thereof. A company is required to pay tax quarterly and at least 85% of the total tax payable should be submitted to ATO before filing an annual return.

The company has a separate legal entity and hence, income earned by the company or from the company is not included in personal incomes.
 
Conclusion

However, the government of Australia has taken various steps to make the return filing procedure as simple as it could be. Still filing a tax return Sydney is a tricky step, because of various deductions and regulations. If you are also among the people who don't need to get into legal formalities, it is better to hire a tax consultant to deal with the formalities on your behalf.

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