Filing your tax return as an individual is one of those tasks many people delay—but doing it properly can make a real difference to your finances. Whether you’re employed, self-employed, a student, or retired, understanding how a tax return individual works helps you stay compliant with the ATO and potentially increase your refund.
In Australia, your tax return is how you report income, claim deductions, and calculate whether you’re owed money or need to pay extra tax. The better prepared you are, the smoother the process will be—and the more confident you’ll feel about your financial position.
What Is a Tax Return for an Individual?
A tax return individual is the annual form you lodge with the Australian Taxation Office (ATO) to declare:
- Your total income
• Any tax already paid
• Deductions you’re entitled to claim
• Tax offsets and credits
• Your final tax outcome (refund or payable amount)
It determines whether you’ve paid too much tax and are owed a refund, or if you need to pay additional tax.
How to Maximise Your Tax Return as an Individual
To get the best result from your tax return individual, preparation is everything. Keeping good records and understanding what you can legally claim makes a major difference to your final outcome.
Many Australians choose to work with professionals who specialise in individual tax returns to ensure accuracy and maximise deductions. Using trusted individual tax return services can help you lodge correctly, stay compliant, and identify deductions you might otherwise miss.
A registered tax agent can also deal directly with the ATO on your behalf, saving you time and stress.
Who Needs to Lodge an Individual Tax Return?
You generally need to lodge a tax return if, during the financial year, you:
✔ Earned income from employment or contracting
✔ Ran a business or side hustle
✔ Received government payments
✔ Earned interest, dividends, or rental income
✔ Sold assets such as shares or property
✔ Had tax withheld from your wages
Even if you earned under the tax-free threshold, lodging can help you get back any tax your employer withheld.
What Income Goes Into Your Tax Return Individual?
When completing your tax return individual, you must include all assessable income.
Employment Income
- Wages and salaries
• Bonuses, commissions, and allowances
Investment Income
- Bank interest
• Dividends
• Managed fund distributions
Business & Contract Income
- Freelancing
• Sole trader earnings
• Gig economy income (Uber, Airtasker, etc.)
Other Income
- Rental income
• Capital gains
• Foreign income
The ATO uses data-matching technology, so failing to declare income is one of the fastest ways to trigger a review or audit.
Common Deductions You Can Claim
One of the biggest advantages of lodging your tax return individual properly is claiming deductions that reduce your taxable income.
Work-Related Deductions
You may be able to claim:
- Home office expenses
• Work-related travel
• Uniforms and protective clothing
• Tools and equipment
• Self-education expenses
Other Deductions
- Donations to registered charities
• Tax agent fees
• Income protection insurance
• Investment-related expenses
Always keep receipts and records for at least five years in case the ATO asks for evidence.
How to Lodge Your Tax Return Individual
You have three main options:
1. Lodge Online with MyGov
Using myTax through your MyGov account is free and suitable for simple returns.
2. Use a Registered Tax Agent
Best for people with multiple income streams, investments, rental properties, or business income.
3. Paper Lodgement
Less common and slower, but still available if needed.
Important Tax Return Deadlines
- 31 October – If you lodge your own return
• May (following year) – If you use a registered tax agent (you must be registered early)
Missing deadlines can result in penalties and interest.
Mistakes to Avoid When Lodging Your Tax Return
When preparing your tax return individual, avoid these common errors:
- Forgetting income from side jobs
- Claiming private expenses as deductions
- Not keeping receipts
- Lodging late without an extension
- Ignoring ATO notices
These mistakes can delay your refund or lead to audits and fines.
Do You Need a Tax Agent?
You’re not required to use a tax agent, but many people choose to because:
- They maximise deductions
- Reduce the risk of errors
- Save time
- Handle communication with the ATO
If your situation includes investments, self-employment, rental property, or overseas income, professional help is highly recommended.
Final Thoughts
Your tax return individual is more than just a yearly obligation—it’s a financial opportunity. With good preparation, accurate records, and the right support, you can reduce stress, improve your refund, and stay fully compliant with tax laws.
Doing it right now can save you money later.
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