A tax return reports all your income, deductions, and tax already paid so the ATO can calculate whether you owe tax or get a refund for the financial year.
You must lodge a return if you earned above the tax-free threshold, ran a business, received taxable payments, made capital gains, or the ATO issued a “lodge” notice.
The ATO pre-loads a lot of your data, but you’re still responsible for adding business income, rental details, deductions, and anything not captured in prefill.
If you’re getting ready to lodge your tax return in Australia, it can be hard to tell what actually matters: what the ATO already knows, what you still need to report, and how to avoid a surprise tax bill. And once you add ABN income, investments or a growing business into the mix, knowing when to DIY and when to lean on a tax return accountant becomes just as important as the form itself.
By the end, you’ll understand:
- What a tax return is and the main types in Australia
- Who actually needs to lodge (and when you may not)
- What the ATO already knows and what you still need to prepare
- Why having a tax return accountant is important
So you can move from guessing your way through tax time to making informed, confident decisions about how you lodge and who you trust with your numbers.
You must lodge a tax return if you earned above the tax-free threshold, had tax withheld, ran a business, made capital gains, or received an ATO lodgement notice, even if your return is prefilled.
What is a tax return?
A tax return is a formal report you lodge with the Australian Taxation Office (ATO) each year for the financial year (1 July to 30 June). In which, you tell the ATO:
- how much money you earned,
- what you spent to earn it (deductions), and
- how much tax has already been paid along the way.
For an individual or sole trader, a tax return usually includes:
- Income: wages and salaries, freelance or contractor income, sole trader business income, rental income, interest, dividends, managed funds, crypto and other investment returns
- Capital gains or losses: for example, from selling shares, property or crypto
- Deductions: work-related and business expenses you paid for yourself (tools, uniforms, subscriptions, car and home office costs, professional services, etc.)
- Tax offsets and credits: such as the low income tax offset, private health insurance rebate, or franking credits (depending on the year and your circumstances)
- Tax already paid: PAYG withholding from your wages and any PAYG instalments during the year
The ATO uses this information to calculate your taxable income and reconcile your position for the year:
- if you’ve paid too much tax, you get a refund
- if you’ve paid too little, you’ll have an amount to pay
So, completing your tax return in Australia isn’t just about ticking a legal box, it’s how you square up with the ATO, make sure you’re not overpaying, and keep your different income streams under control.
What are the different types of tax returns in Australia?
In Australia, tax returns differ based on how you earn income; as an individual, sole trader, partnership, trust or company and each structure has its own way of reporting and paying tax.
Type | Who lodges the return | Who pays the tax | Key points |
Individual tax return | Individual person (employee, investor, retiree) | The individual | Reports salary/wages, taxable Centrelink payments, interest, dividends, rental income, capital gains. |
Sole trader (Individual tax return+business schedule) | Individual operating a business in their own name | The individual | ABN income and business deductions are included in the individual return, no separate “sole trader” return. |
Partnership tax return | The partnership (under its own TFN) | Each partner in their own return | Partnership return shows total profit/loss; each partner reports their share in their own individual/company return. |
Trust tax return | The trustee (on behalf of the trust) | Beneficiaries (and sometimes the trustee) | Trust return shows net income; beneficiaries include their share of trust income in their own returns. |
Company tax return | The company (as a separate legal entity) | The company (on its profits) + directors/shareholders in their own returns | Company pays tax at corporate rate; directors still lodge individual returns for salary, dividends and other income. |
Who needs to lodge a tax return in Australia?
Not everyone in Australia has to lodge a tax return every year but many people do, especially if they’re earning from more than one source or running a business.
In general, you’ll need to lodge a tax return if:
- You earned above the tax-free threshold
Most individuals who earn more than the tax-free threshold in a financial year need to lodge a return, even if all their income was from one employer. - You’re a sole trader or run a business
If you operate as a sole trader, you must lodge an individual tax return and report both:- your personal income (e.g. salary, interest, dividends), and
- your business income and business deductions, even if your business made a loss.
- You had tax withheld from payments
If tax was taken out of your income (for example, PAYG withholding from wages, contract income or bank interest), you’ll usually need to lodge a return so the ATO can work out whether you’re due a refund or owe more. - You received government benefits or allowances
Some Centrelink or Services Australia payments are taxable. If you receive these, you may need to lodge a return so your total income can be assessed. - You made capital gains or investment income
Selling shares, property or crypto, or earning rental income, dividends or interest, can trigger tax obligations that need to be reported in your tax return. - The ATO has told you to lodge
If you’ve received a notice from the ATO asking you to lodge a tax return (or to catch up on missed years), you’re required to do so, even if you think your income is low.
On the flip side, there are cases where you might not need to lodge, for example, if your income is below the threshold, you only had very limited bank interest, and no tax was withheld. In those situations, you may still need to notify the ATO that you don’t need to lodge for that year.
A complete tax return goes beyond your salary, you must include all income streams such as ABN earnings, rental income, investments, and capital gains, even if they don’t appear in ATO prefill. The ATO already receives data from employers, banks, government agencies, and private health insurers, so what you add must match and fill the gaps, not contradict what’s already on record.
What does the ATO already know before you lodge your tax return?
A lot of people still think a tax return is the first time the ATO sees their numbers. It’s not.
By the time you start your tax return in Australia, the ATO may already have data from:
- Employers: income statements (formerly PAYG summaries)
- Banks and financial institutions: interest earned
- Some government agencies: certain taxable payments and benefits
- Private health insurers: selected policy details, depending on the year
If you lodge online via myTax, much of this appears as pre-filled information you can review and confirm.
What the ATO often doesn’t automatically know (and what you must add):
- Sole trader and ABN income that isn’t reported through an employer
- Rental income and expenses
- Capital gains and losses
- Some overseas income
- The specific deductions you’re claiming and the basis for them
Your job isn’t to “hide” things, it’s to fill in the gaps accurately and make sure the full story is consistent.
What should you prepare before lodging your tax return in Australia?
Good preparation means fewer mistakes, fewer ATO questions, and a smoother experience whether you lodge yourself or use an agent.
Here’s what you’ll typically want ready.
Personal details
- Tax File Number (TFN)
- Current postal and email address
- Date of birth
- Bank account details for any refund (BSB and account number)
Income information
Depending on your situation:
- Employment income: Income statements from employers (often pre-filled)
- Sole trader / business income: Invoices, sales reports, Xero or other accounting software reports
- Government payments: Payment summaries from Services Australia / Centrelink
- Investment income: Bank interest, dividends, managed fund statements
- Rental income: Property manager statements or your own rent records
- Capital gains events: Purchase and sale details for shares, property, crypto and other assets
Deductions and expenses
If you’re planning to claim deductions, whether they’re work-related costs, sole trader business expenses, donations or eligible personal super contributions, make sure you have solid evidence to back them up. Keep digital or physical receipts, invoices, bank statements, logbooks and diaries organised so your claims are easy to justify if the ATO ever asks.
Other supporting details
- Private health insurance statement (if you have cover)
- Spouse or partner income details (needed for some offsets and family-based calculations)
If you use a tax agent, give them access to your accounting records (e.g. Xero) and share anything that won’t appear in ATO pre-fill.
Read more: Tax Accountant vs Tax Agent: Which One Should You Choose?
How to lodge a tax return in Australia
Once you’ve got your information together, you have three main ways to lodge your tax return in Australia:
- Online using myTax via myGov
- Through a registered tax agent
- Using a paper tax return
How to lodge your tax return online using myTax
Step 1: Create or log in to your myGov account
Go to my.gov.au and sign in or create an account.
Step 2: Link your ATO account
In myGov, link the ATO service. You’ll confirm your identity using your TFN and other personal details.
Step 3: Start your tax return in myTax
From the ATO section in myGov, start your individual tax return for the relevant year. This opens myTax.
Step 4: Review pre-filled information
Check the income and other details that have been pre-filled (employers, bank interest, some government payments, some private health information). Correct anything that’s wrong or incomplete.
Step 5: Add any missing income
Enter income that isn’t pre-filled, such as:
- ABN / sole trader income
- Rental income
- Dividends or other investment income not pre-filled
- Capital gains or losses
- Overseas income (if applicable)
Step 6: Enter deductions and other claims
Add your work-related, business and other eligible deductions, and ensure they align with your records.
Step 7: Review and lodge
Check the summary, read the declaration, then lodge. You’ll receive a lodgement receipt and can track progress in myGov.
Other ways to lodge
1. Through a registered tax agent
A registered tax agent or accountant prepares and lodges your tax return using their own ATO-approved software. They’re the only people allowed to charge a fee for this service.
This is common for:
- Sole traders and contractors
- Small business owners
- Anyone with rental properties, complex investments or capital gains events
2. Using a paper tax return
You can still request and submit a paper tax return by mail, but it’s slower and has no pre-fill or automated checks. This is usually only suitable for simple affairs and people who can’t use online services.
myTax vs tax agent vs paper: Which lodgement method should you choose?
Choosing between myTax, a tax agent, or a paper return comes down to how complex your situation is, how confident you feel with the rules, and whether you’d rather save time or save fees.
Method | What it is | Best for | Key considerations |
Online (myTax via myGov) | Lodge directly with the ATO through the myTax portal in your myGov account. | Employees and sole traders with straightforward affairs who are comfortable lodging themselves. | Pre-fill helps, but you’re responsible for including all income (e.g. side gigs, business, investments) and claiming deductions correctly. |
Registered tax agent / accountant | A licensed professional prepares and lodges your tax return using ATO-approved software. | Sole traders, contractors, small business owners, and anyone with multiple or complex income sources. | Professional fees are tax-deductible; agents can help optimise deductions and may access extended lodgement deadlines under ATO rules. |
Paper tax return | Manually completing a paper form and mailing it to the ATO. | Individuals with no online access and very simple tax situations. | Slow processing, no pre-fill or automated checks, and higher risk of errors; not ideal for businesses or complex returns. |
What happens after you lodge your tax return?
After you hit “lodge”, a few things happen behind the scenes.
Processing and status
If you lodge online, you’ll usually see your return move through statuses in ATO online services (via myGov), such as:
- Received: The ATO has your return
- Processing: They’re checking and matching the information
- Processed: They’ve finalised your assessment
For paper returns, processing takes longer because everything is handled manually.
Notice of Assessment (NOA)
Once processed, the ATO issues a Notice of Assessment, which typically shows:
- your taxable income
- how much tax and Medicare levy apply
- any credits and offsets
- whether you’re getting a refund or have an amount to pay
- the payment due date if you owe tax
Your NOA is essentially the ATO’s final say on your return for that year, unless you or they later amend it.
Refunds and payments
- If you’re due a refund, it’s generally paid directly into the bank account you provided.
- If you owe tax, you’ll need to pay by the due date on your NOA to avoid interest charges.
If you realise you made a mistake in your tax return
If you spot an error after lodging (missed income, over-claimed deduction, wrong figure), you don’t have to panic. You can usually request an amendment to your tax return via myGov, through your tax agent, or by other channels the ATO allows.
If the ATO believes something doesn’t add up, they may contact you with more information or adjust your return and explain why.
Do you really need a tax return accountant?
You can lodge a tax return yourself, but once you add a side hustle, ABN income, investments or rental property into the mix, a good tax accountant stops being a nice-to-have and starts becoming risk management.
A tax return accountant helps you:
- See the whole picture, not just this year’s form: salary, business income, investments, GST, PAYG instalments and structure all need to work together.
- Claim confidently, not guess: they know where the ATO draws the line on car, home office, travel and business deductions, so you’re not under-claiming out of fear or over-claiming by accident.
- Avoid nasty surprises: repeated tax bills, missed PAYG instalments, or “why did I get this ATO letter?” moments are often avoidable with planning, not panic.
The real value isn’t just “getting a bigger refund”, it’s having someone who understands your numbers, your goals and the ATO’s rules, and can help you make smarter decisions before you hit Lodge.
You can lodge through myTax, a paper form, or a registered tax agent but once you add business income, rentals or multiple income streams, using a tax accountant becomes far more efficient and reduces error risk.
How a Sleek tax return accountant helps you lodge smarter
Hiring a tax return accountant shouldn’t just be about getting your return lodged, it should be about getting real value for your money.
With Sleek, you get:
- A dedicated tax return accountant who understands sole traders, side hustles and small businesses
- Registered expertise: Qualified CPA/CA accountants registered with the TPB, so you know your return is in safe hands
- Maximised, compliant deductions: We help you claim everything you’re legitimately entitled to, without crossing ATO lines
- Practical, expert advice on records, structure and future planning, so tax bills and PAYG instalments don’t blindside you
- Year-round support: Not just at tax time, but whenever your income, business or circumstances change
Stop treating your tax return as a once-a-year chore. Talk to a Sleek tax return accountant and turn it into a tool for smarter decisions and better cash flow.
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Frequently Asked Questions
What are the key deadlines for lodging a tax return in Australia?
If you lodge your own tax return (via myTax or paper), the standard due date for individuals is usually:
- 31 October following the end of the financial year (e.g. for 1 July 2024 – 30 June 2025, the due date is 31 October 2025).
If you use a registered tax agent:
- You generally need to be on their client list by 31 October, and
- Your actual lodgement due date can be later, under the ATO’s tax agent lodgement program (often sometime between November and May, depending on your risk profile and whether you’re up to date with prior years).
If I change from sole trader to a company mid-year, how does that affect my tax return?
You’ll usually report sole trader income in your individual tax return up to the date you start trading through the company, and the company lodges its own return for income earned in the company name after that. Structuring mid-year doesn’t “blend” the two, you’re effectively dealing with two different taxpayers for that year.
What are the most common mistakes people make when lodging a tax return?
The big ones are:
- Forgetting income (ABN/gig work, bank interest, crypto)
- Over-claiming deductions without evidence
- Copying last year’s claims even though circumstances changes
- Lodging in a rush without checking ATO pre-fill
Most of these are avoidable if you reconcile all income sources, only claim what you can prove, and review everything once before you hit Lodge.
