It’s that time of year again - it’s 2024 tax time! For many people, this is an exciting time of year when we get back some of that hard-earned cash that was taken out of every fortnightly pay. For others, this is just about the least fun time of year, when not only do we have to muddle our way through complex ATO forms, but we may even end up with a tax bill. The Kalculators are here to make the tax returns process much easier. This article will inform you what information is required to file a tax return. Plus, we’ll share our tips for preparing your 2024 EOFY tax return to be quick, easy, and profitable.
Don’t want the hassle? Let The Kalculators do your tax return from just $60
Australian tax rates for 2024
Beginning with the 2019-20 fiscal year and continuing until the 2023-24 fiscal year, the tax brackets have not changed much. To understand the ATO tax rate in 2024, we have illustrated the important details in the following table. For the current fiscal year, the tax brackets that apply to you are as follows, based on your income:
Taxable income | Tax on this income | Marginal tax rate |
$0–$18,200 | Nil | 0% |
$18,201–$45,000 | 19c for each $1 over $18,200 | 19% |
$45,001–$120,000 | $5,092 plus 32.5c for each $1 over $45,000 | 32.50% |
$120,001–$180,000 | $29,467 plus 37c for each $1 over $120,000 | 37% |
$180,001 and over | $51,667 plus 45c for each $1 over $180,000 | 45% |
This means that an Australian resident for the whole year who made $40,000 a year would be taxed about $4,142.00; an Australian resident for the whole year who made $80,000 would be taxed about $16,467.00; and an employee for the whole year who made $100,000 would be taxed about $22,967.00. Remember that the above rates do not include the 2% Medicare levy.
Of course, your tax may differ based on your deductions, any tax breaks you may be eligible for, and investments like foreign income that you may be taxed on. Because of this, the tax numbers shown above are only a rough guess and not a stable tax return percentage.
Documents you should have ready for 2024 tax return
To properly file your tax return, you should have the following items on hand, but this list is not exhaustive:
- Social security number;
- Information about your bank account so that they know where to send any refunds you might be due;
- Any statements or summaries of your income that your bosses have given you;
- Details about payments from Centrelink (Services Australia) for help and relief programs;
- Information about any other ways you make money, like businesses, properties, stocks, or stockholdings;
- Bring in bills or papers for the expenses you want to deduct from your tax return;
- Any details you may have about a private health insurance plan;
- If you have given money to charity, the records for those gifts.
Keep in mind that by the end of July, most of the information from your companies, banks, health funds, and other third parties will already be filled in for you if you file your own tax return using myTax, which you can get from the myGov website and the ATO app.
When and how can I lodge my tax return?
You have from 1 July to 31 October to lodge your tax return for the previous financial year. However, the sooner you lodge your return, the sooner you’ll likely receive any funds owed to you by the ATO. If you use a tax accountant, it’s a good idea to schedule your appointment as soon as possible, as this will be their busiest time of year. You can easily book a consultation with The Kalculators online for a day and time that suits you, as we have many out-of-hours time slots available. Read on Top tax scams in Australia and how to get away with them to be on the safer side.
Tips for your 2024 Australian tax return
In preparation for your 2024 Australian tax return, keep the following tips in mind.
1. Give your money to charity early
If you would like to give money to causes and groups you support and maximise your tax benefits, do it before the end of the year to get the biggest tax break for 2024. Most people can deduct up to 50% of their taxable income from the amount they give to charity. Before you give money to anyone, check the ATO's tax-exempt group database to ensure your donation will be tax-deductible. All legitimate non-profits and groups will also have a tax ID number that shows they don't have to pay taxes.
2. Have proof of everything you buy
We've all seen those annoying receipts, but you need to keep them if you buy something for work, even if it's just for fun. Another important thing to note is that you don't need receipts for work-related costs that don't add up to $300. You may not need a ticket when you spend up to $300, but you must have spent that money on something related to your job; you can't just claim $300.
3. Set up a receipt system
There are other people like you who hide their records in a drawer or a big envelope. Still, there's a better way. It's easy to lose receipts, so you need to set up a method. Also, the ink can fade over time, leaving the paper blank! One of the best ways to save money on taxes is to keep track of and file your records. From now on, try to keep every ticket that proves something and talk to your accountant to find out what you can claim. Luckily, apps can help you scan receipts and save them digitally if you'd rather not keep them safe.
4. Real estate investments
The ATO says that nine out of ten people who invest in rental properties make "mistakes" on their tax returns. These mistakes usually have to do with interest payments. A senior ATO official recently said, "We see people refinancing their loans and then using the refinancing amounts for personal expenses, like buying a car or going on vacation. We tell them that interest needs to be split up for the personal expense."
The ATO is also looking into people who rent out their homes on Airbnb but don't report their income or think they might have to pay capital gains tax when they sell the property where they hired out a room. This can be hard for ADF members, so you should talk to an expert if you're unsure about your tax obligations.
Conclusion
Use the above tips to get the most out of your tax return for 2024. Getting the most out of your tax return each year can help you reach your savings goals faster, whether for a family vacation or to pay off debt. You can check out more information on how to get the best tax refund this season.
The Kalculators can help you if your tax return is too much to handle and you need help figuring out what to do next. Kindly get in touch to start preparing for your tax lodgement. For more than 8 years, we have helped Australians get the best out of their tax returns. We can do the same for you. Do not waste time joining one of our satisfied clients, it will give you the peace of mind you need.
Frequently asked questions
Should I do my tax return?
Sure, you can do your own tax return. Lots of people do! However, if you’re someone who isn’t comfortable with online forms or maths, why not get a professional to sort it out for you? You could save yourself an entire evening of frustration when you’d much rather be building your business or watching that new show everyone’s talking about on Netflix.
What do I need to bring to my tax appointment?
Your tax professional will need to create an income statement for you for the previous financial year. Essentially, this proves any money you’ve made during the year. This information for tax returns includes but is not limited to:
- PAYG Payment Summaries (previously Group Certificates) - your employer will provide you with this.
- Payment Summaries from Centrelink
- Eligible termination payments
- Share dividend statements
- Any money made from the likes of Uber, Airbnb or Stayz.com
- Tax return for working holiday visa
- Annual tax statements from trusts, managed investments, property and cash management trusts
- Income and expenses from investment properties
- Your tax professional must then develop a statement of deductions or business expenses. This information for tax returns includes but is not limited to
- A list of work-related expenses (with receipts).
- Interest and fees on investment loans
- Business donations to charities
- School building levies and library funds
- Accountancy fees charged for the previous year’s tax return
- Insurance, e.g. income protection, sickness and accident, private health
- Superannuation contributions (over and above mandatory payments)
If you’re not sure, give The Kalculators a call at (08) 7480 2593, and we’ll happily talk you through what to bring.
How can I lodge my 2024 tax return?
You can lodge online with myTax through myGov. There is a certain amount of setup required before you’re able to access the necessary online forms. The forms themselves take some time to fill out, and you’ll need to have details of your earnings and any business-related expenses incurred throughout the year. The easiest way to complete your tax return is to meet with a certified tax agent, as they will be able to explain what’s required in simple terms and secure you the maximum refund to which you’re entitled. When the cost is as little as $60 (for a basic individual tax return handled by The Kalculators), it’s a no-brainer! There are no complicated forms for you to fill out, no late-night frustration at technology, just your money in your account when needed.
How soon can I get my tax refund?
Electronic returns are normally processed within two weeks. Paper returns take much longer. Once the ATO has processed your tax return, you’ll be issued a notice of assessment telling you if you're entitled to a refund or whether you have a tax debt to pay. As one of Adelaide’s top accounting firms, we work hard to get the best results for our clients - that means maximum refunds and minimum waiting time. We deliver expert accounting services Adelaide residents trust. So, for quick and hassle-free tax returns starting from $60, contact The Kalculators today. Book your tax consultation at a time that suits you at one of our seven office locations. Book now.