Tax Return Australia: How To Lodge A Tax Return in 2025

Tax Return Australia: Lodge Your Taxes Quickly & Easily

Are you overpaying your taxes? Do you want to know how to file a tax return in Australia?

Taxes can feel like a giant headache, especially with Australia’s ever-evolving tax laws. But it doesn’t have to be.

Whether you’re a first-timer or just need a refresher, this guide will break down how to file your tax return in Australia step-by-step, from gathering documents to maximising your deductions.

If your tax return is more complicated (or if you think it will take you more than 1 hour), I recommend working with a tax agent. They can help you pay less tax and identify any incentives for your industry.

1. Know Your Tax Return Deadlines

First, make sure you’re aware of the key dates for filing your tax return in Australia:

• End of Financial Year (EOFY): Australia’s financial year runs from 1 July to 30 June, so you’re filing for the financial year just finished.
• Filing Deadline: If you’re filing your own tax return, it’s due by 31 October each year. Missing this deadline can lead to penalties + interest, so be sure to mark it on your calendar.

Pro Tip: If you’re working with a registered tax agent, you usually get an extension until 15th May. Just make sure you’re registered with them before 31 October.

2. Gather Documents and Information

Make sure you have all your documents ready prior to starting your tax return (it will save you time later on). Gather any relevant deductions and pay information.

Income Information

• PAYG Payment Summary: You don’t need this anymore as your pay information is reported to the ATO by your employer each year via STP.
• Bank Statements: Any bank interest will be automatically reported to the ATO.
• Investment Income: Include dividends from shares or managed funds, rental income, and any cryptocurrency earnings (some of these may be reported to the ATO automatically).

Most income information is automatically reported to the ATO. Even if you sell your house, shares, or get private health insurance—the ATO will have a record of it as everything is now linked to your tax file numer (TFN).

Deductions and Expenses

• Work-Related Expenses: Expenses that relate directly to your job, such as uniforms, laundry, work-from-home costs, mobile phone, or work-related travel (including if you used your personal car for work trips).
• Self-Education Expenses: If you took courses or training related to your current job (not upskilling), you may be able to claim these expenses.
• Investment Expenses: Fees for financial advice, account-keeping fees, and interest on investment loans are tax-deductible against investment income.
• Donations to Charities: Donations over $2 to registered charities are tax-deductible.
• Other Deductions:
  • Income Protection Insurance
  • Tax agent fees
  • ATO interest charges
  • Work-related memberships or subscriptions
  • Equipment: laptop, mobile phone, or other equipment (i.e. tools) needed for your job.

Pro Tip: Keep all of your receipts and invoices in a dedicated folder (either physical or digital) throughout the year to make lodging your tax return in Australia easier.

The ATO has an app called MyDeductions where you can take photos of your receipts and keep them all in one place.

3. Log in to myGov or Use a Registered Tax Agent

To lodge your tax return in Australia, you have two main options:

1. Use the myGov website and complete it yourself (it’s free, except for your time spent)
2. Work with a registered tax agent (usually $200-300 depending on your income, deductions, and investments).

Using myGov

If your taxes are basic and you’re comfortable doing them yourself, myGov offers a straightforward way to lodge online.

1. Link Your myGov Account to the ATO: If you haven’t already, link your myGov account to the Australian Tax Office (ATO). This will allow you to access your pre-filled tax return.
2. Pre-Fill Your Return: By late July, most of your income information (like wages, interest, and government payments) will be available for pre-filling.
3. Review and Enter Additional Information: You’ll need to add any deductions, expenses, or other income that the ATO hasn’t pre-filled.

Click each both and edit / review the information. Once you’re happy everything is correct, submit it to the ATO. They’ll usually process it within 2 weeks.

Using a Registered Tax Agent

If your tax situation is more complex (i.e. if you have a rental property or share investments), a tax agent can make sure you’re compliant and help maximise your deductions.

1. Find a Registered Tax Agent: You can find registered tax agents online via Google Maps, or through personal referrals.
2. Submit Your Information to the Agent: Your tax agent will need access to your documents and information to lodge on your behalf. Registered agents often get extended lodgement deadlines, which can be handy if you’re running late.

Pro Tip: Many Australians use a tax agent for peace of mind and to get the most out of their deductions. Just ensure your tax agent is registered with the Tax Practitioners Board (TPB).

4. Claim Your Deductions Wisely

Deductions are one of the best ways to reduce your taxable income, but it’s important to know what you’re eligible for.

Different industries have different deduction allowances. If you’re not sure, check the ATO website or ask your tax agent.

Generally, you can claim anything that’s needed to complete your job. If there’s a personal usage portion, you need to apportion the expense (usually with a diary / record).

Work-Related Expenses

These must be directly related to your job, and you need to have proof of each expense (via receipt or bank transaction). Common work-related deductions include:

• Uniform and Laundry Expenses: This is claimable if your employer requires you to wear a uniform with a logo, or if you wear PPE (e.g. tradies, nurses, doctors etc.)
• Tools and Equipment: This is claimable if used for work, such as laptops or tools specific to your job.
• Home Office Expenses: For remote workers, you can claim a portion of your utilities, internet, and office supplies. You can either multiple hours worked x $0.67, or claim actual expenses. But if you claim actual expenses, you need to have a dedicated office / room to work in.

Self-Education Expenses

If you’ve taken courses or training relevant to your current job, you may be eligible to claim tuition fees, course materials, and travel costs. This doesn’t apply to courses for a new field of work, however. It has to be directly related to your current job (and likely to result in a promotion).

Investment Deductions

Expenses related to managing or earning investment income are claimable, such as interest on investment loans and financial advisor fees. The rules are constantly changing around what you can claim for a rental property, so check the ATO website or with a tax agent for specific deductions.

Charity Donations

Any donations over $2 to registered charities can be claimed, so long as you have a receipt. You can check the DGR status at abr.gov.au or it should be listed on your tax invoice. This is a great way to support good causes while lowering your taxable income.

Pro Tip: The ATO uses data-matching software, so avoid “guessing” or inflating deductions. Always keep receipts and records for each claim.

Private Health Offset

If you have private hospital cover, it will be automatically prefilled in your tax return. The rebate will be applied automatically based on your income. If you don’t have private health insurance and you earn over $97,000 in 2025, it’s worth getting it otherwise you’ll have to pay the Medicare Levy Surcharge (1-1.5% extra tax).

If private hospital cover costs you $1,500 per year, once you earn over $150,000 per year, it’s better to have private health (and save on the additional MLS tax).

Note: The MLS is in addition to the regular medicare levy (2% on regular income).

5. Report All Of Your Income

It’s crucial to report all your income accurately to avoid penalties. Here’s a reminder of what to include:

• Employment Income: Any wages or salary you earned over the year.
• Rental Income: For property owners, this includes rent payments, as well as other payments made by tenants (like utilities or maintenance).
• Freelance and Side Income: Any additional income, even from side gigs, freelancing, or gig economy jobs (Uber, Upwork, or Airbnb).
• Capital Gains: If you’ve sold any investments (like shares, real estate, or cryptocurrency), you’ll need to report the gain or loss.

Pro Tip: Failing to report income can lead to penalties, so it’s better to declare everything upfront. The ATO receives data from various sources, so they’re likely to catch unreported income.

6. Review Your Tax Return for Accuracy

Once you’ve completed your Australian tax return, whether on myGov or through a tax agent, take a moment to double-check everything.

• Check Income and Deductions: Make sure you haven’t missed any income sources or deductions.
• Verify Personal Information: Small details like your name, address, DOB, and tax file number (TFN) need to be accurate to avoid delays in processing.
• Confirm All Receipts and Evidence: Ensure you have receipts, invoices, or other records for every deduction in case the ATO requests verification.

Pro Tip: Filing a complete and accurate tax return helps you avoid audit risks and speeds up processing times for your refund.

7. Lodge Your Tax Return

Once you’re confident everything is accurate, it’s time to lodge your Australian tax return.

• On myGov: After completing your return on myGov, simply click “Lodge.” You’ll receive a confirmation message, and the ATO will begin processing your return. It usually takes 2 weeks to process a refund.
• With a Tax Agent: Your tax agent will lodge on your behalf, and you should receive a confirmation and notice of assessment from them once it’s done.

Pro Tip: Keep a copy of your lodged return and all supporting documents for at least five years. You may need them if you’re audited or want to refer to them in future tax years.

8. Track Your Tax Refund

If you’re expecting a refund for your Australian tax return, you can track the status of your tax return using the myGov app or online. Most tax returns are processed within two weeks, but if yours is more complex, it may take a little longer.

Pro Tip: To get your refund quickly, make sure your bank details on file with the ATO are correct. This way, your refund will go straight to your account without delay.

9. Pay Any Outstanding Tax

If you owe tax after filing, you’ll receive a notice with the amount due and the payment deadline. Paying on time will help you avoid interest charges.

Payment Options Include:

• Direct Debit: From your bank account.
• BPAY: Using your biller code and reference number.
• myGov Payment Plan: If you’re unable to pay in full, you can apply for a 12-24 month payment plan directly through myGov.

Pro Tip: The ATO offers low-interest payment plans for those experiencing financial hardship. Don’t hesitate to set one up if you need extra time.

10. Plan for Next Year

Tax season may be over, but there are steps you can take to make filing your Australian tax return easier next year:

• Organise Receipts and Records: Keep track of receipts, invoices, and documents throughout the year. Consider using an app to simplify record-keeping.
• Adjust Your Tax Withholding: If you owed tax this year, consider putting extra money into a savings account to make sure you
• Consult a Tax Agent for Year-Round Planning: Many tax agents offer ongoing support to help you prepare for next year’s return, minimise taxes, and improve your financial strategy.

Pro Tip: Planning ahead helps you stay organised, claim more deductions, and avoid surprises at tax time.

11. Move Overseas And Reduce Your Taxes Even Further

Are you a remote worker or business owner? Do you have the flexibility to live overseas?

If you want to reduce your taxes even further, you might consider moving overseas (plus, it’s a great adventure!). Many Australians are discovering that living overseas can offer many tax benefits, plus a lower cost of living and a fun lifestyle.

There are countries with much lower tax rates and a lower cost of living than Australia.

If you become a non-resident of Australia for tax purposes, you stop paying taxes in Australia on any foreign-earned income (you may still have to file a tax return in Australia though, especially if you have a HELP debt).

This means you can unlock 30-50% of your income depending on where you live.

Popular Low-Tax Destinations for Australians

If you’re considering relocating, there are several destinations that are popular among Australian expats. I wrote a long, in-depth article about this already, but to summarise—here are the top picks:

• Southeast Asia: Countries like Thailand, Vietnam, and Indonesia offer a lower cost of living, tax-friendly policies, and vibrant expat communities. Thailand just released a long-term visa for up to 5 years with extremely favourable tax rates.
• Portugal: Known for its Non-Habitual Residency (NHR) digital nomad tax program, Portugal has become a top choice for Australians. You get the Eureopean lifestyle and a reduced tax rate of 20% on most earnings (some is tax-free) Plus you get access to affordable healthcare and are able to work and travel throughout Europe.
• Central and South America: Countries like Nicaragua, Costa Rica, and Panama offer low tax rates, semi-affordable living costs, and a warm climate. Panama’s territorial tax system only taxes income generated within its borders, so foreign income remains untaxed (i.e. if you work for a US or Australian company). Many expats also find that their money goes further in these regions, thanks to low costs for rent, food, and entertainment.

Cost of Living Benefits

In addition to the tax savings, moving overseas can lower your day-to-day expenses. Here in Peru, my living costs are about 40% of what I paid in Australia (and I live in a really nice house). With reduced taxes and living expenses, I’m able to save an extra $3-4k+ AUD per month while living an incredible lifestyle.

The cost of housing, food, transportation, and healthcare in many popular expat destinations is often a fraction of what you’d pay in Australia. You can save and invest more, work less hours, and enjoy a beautiful lifestyle.

• Rent: Many expats save up to 50%+ on rent when living abroad, especially in Southeast Asia and Latin America. High-quality apartments or houses can be rented for much less than Australian prices (around $600-1,000 AUD for an apartment per month).
• Food and Dining Out: Groceries and eating out is much lower in places like Vietnam, Thailand, and Buenos Aires, where you can enjoy fresh, local cuisine at a fraction of the price (meals are about $4-8 when eating out).
• Healthcare: Many low-tax countries offer affordable but high-quality healthcare. Portugal and Thailand, for example, are known for having excellent, accessible world-class healthcare.

Things to Consider Before Moving

• Residency Rules: Each country has its own residency requirements, and the tax benefits may depend on obtaining a specific visa or meeting residency conditions. Always research these details thoroughly and consult a tax expert prior to moving overseas.
• Australian Tax Residency: To avoid being taxed by the ATO on your worldwide income, you need to establish yourself as a non-resident for tax purposes. This often involves demonstrating a permanent move and severing certain ties with Australia, such as selling or renting out your home, cancelling memberships, and minimising family or financial ties.
• Double Tax Agreements (DTAs): Australia has DTAs with many countries to prevent double taxation on the same income. Make sure you understand how these agreements apply to your chosen country, as they may impact which income you need to report in each jurisdiction.

Want To Know More?

Need help filing a tax return in Australia? Want more information about moving overseas? Adventure Tax can help. To find out more, book a free call with me here.

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