Complete Guide to Australian Tax Returns: myTax Process and Practical Tips

Introduction

In Australia, lodging a tax return is not only a legal obligation but also an important opportunity to “get back the money that belongs to you.” Filing a tax return each year is mandatory for all Australian tax residents. By lodging correctly, you can recover tax withheld from your income and potentially access various offsets and benefits. For many people, tax season is also the perfect time to review and organise their finances.

Australia’s financial year runs from 1 July to 30 June. The official online platform, myTax, generally opens in July and requires individuals to lodge by 31 October. If you use a Registered Tax Agent, you may qualify for an extension to the agent’s lodgement due date.

This guide will walk you through the entire process—from linking your myGov account to the ATO, using automatic pre-fill and manual entry, all the way to submitting your myTax return—so that tax time becomes less complicated.

Who Needs to Lodge a Tax Return?

In principle, all Australian tax residents are required to lodge a return every year.

• Full-time and part-time employees Employers withhold tax from your pay (PAYG withholding). Lodging a return confirms whether you are due a refund or need to pay more.

• Temporary visa holders This includes Working Holiday Makers (WHV) and some student visa holders. Whether you must lodge depends on whether you earned Australian-sourced income, had tax withheld, and your residency status. Even with low income, you may need to lodge in order to claim a refund.

• Low-income or no-income earners If your total income is below the tax-free threshold and you are sure you don’t need a refund, you may not need to lodge. However, it’s best to file a Non-lodgment advice to avoid the ATO assuming you “should have lodged but didn’t.”

• People with investments or additional income Examples include dividends, ETF distributions, capital gains, rental income, or freelance/self-employment income. These must be declared, along with relevant deductions or depreciation. Failing to report may result in back taxes, interest, and penalties.

Essential Preparation Before Lodging

The most important step before starting your return is gathering all documents and records. This prevents interruptions and ensures consistency with ATO data.

1. Verify personal details myTax pre-fills some details, so check these carefully:

• Tax File Number (TFN)

• Legal name

• Date of birth

• Residential and postal address

• Bank details (BSB & Account Number for refunds)

• Spouse details (if applicable)

If these differ from records held by the ATO or employers, your return may fail or your refund be delayed. Log in to myGov/ATO or confirm directly with your employer/bank before lodging.

2. Income and deduction records Gather all relevant documents:

• Employment income: Income Statement (replaced PAYG summary; uploaded by employers in July)

• Financial income: Bank interest, dividends, ETF distributions

• Property income/expenses: Rental statements, mortgage interest, related costs

• Other income: Gig economy earnings (Uber, Airbnb, Deliveroo, freelance platforms, etc.)

• Deductions/offsets: Insurance and union fees, work-related costs (tools, equipment, uniforms), travel logs, home office expenses, self-education costs, etc.

💡 Tip: Most employers and financial institutions finalise data by late July. Lodging too early risks missing information and needing corrections. Waiting until the end of July maximises pre-fill accuracy.

Linking ATO and myTax

myTax is the ATO’s official, secure, and free online tax system. To use it, you must log in via your myGov account and link to the ATO.

How to link:

1. Register or sign in to myGov.

2. Click “Link a service” → Select ATO.

3. Complete identity verification (TFN, address, or other details may be required).

4. Once linked, you can access myTax with pre-filled data including:

   • Income Statements from employers

   • Bank interest

   • Dividends and ETF distributions

   • Superannuation records

Manual entry may still be needed for:

• Foreign income

• Freelance/self-employed income

• Some platform-based or casual income

Verification failure: If online verification fails, call the ATO to confirm your identity and obtain a temporary linking code. This can then be entered to complete the connection. Allow extra time as phone queues are often long.

Step-by-Step myTax Lodgement

Step 1: Log in to myGov Select ATO → Manage tax returns / Lodge my tax → Choose the relevant year.

Step 2: Confirm personal details Check all details, especially refund bank account (BSB & Account Number). ⚠️ Errors here cause refund delays or rejections.

Step 3: Review income/deductions list The system displays available items and pre-filled employer/financial data. Waiting until late July ensures completeness.

Step 4: Add missing information Manually add:

• Self-employment/freelance income

• Foreign income

• Home office expenses (fixed-rate or actual-cost method)

• Depreciation of tools/equipment

• Work-related travel expenses

• Professional registration/insurance fees

• Self-education costs

Keep receipts and records as evidence.

Step 5: Submit return myTax will show an estimate (refund or tax payable). After review, tick the declaration and submit. You can track progress under Manage tax returns.

⏱️ Processing time: Typically 1–2 weeks. Refunds go directly to your bank. If you owe tax, pay by the due date on your Notice of Assessment to avoid penalties or interest.

After Lodging: What to Expect

• ATO review process

  • Automated matching: ATO compares your return with employer, bank, super fund, and other third-party data. Simple salary cases are usually cleared automatically.

  • Triggers for review: Discrepancies (e.g., undeclared income, excessive deductions) may lead to manual audit or requests for more documents.

  • Notifications: Sent via myGov (My Messages) or traditional mail. Check regularly.

• Notice of Assessment (NOA)

  • Refunds: Ensure details and bank account match. Normally credited within 1–2 weeks unless under review.

  • Tax payable: Pay by the due date via BPAY, online transfer, or ATO payment options.

  • Can’t pay in full? Contact ATO promptly to arrange instalments.

• If asked for more documents

  • Follow instructions in ATO messages.

  • Upload clear scans/photos of documents with year and purpose labelled.

  • Respond by the deadline; if more time is needed, notify ATO.

• Correcting mistakes

  • Use myTax “Amend” function or request a correction via myGov.

  • Gather supporting documents before amending.

  • Corrections can still be made after an NOA is issued.

  • If disputing an assessment, lodge an objection and seek professional advice if needed.

Common Mistakes and Pitfalls

• Lodging too early (before “Tax ready”)

• Forgetting gig/platform income (Airbnb, Uber, freelancing)

• Incorrectly reporting super or lump sums

• Entering wrong bank details

• Claiming deductions without receipts

Practical Tips

• Keep all records for at least five years.

• Organise documents monthly (pay slips, bank statements, platform summaries, receipts).

• Digitise receipts and back up to cloud storage.

• Maintain detailed logs for mileage and home office claims.

• Use software/apps as tools, but always double-check manually.

• Use a registered tax agent for complex cases (rental property, capital gains, foreign income, business income).

• Respond to ATO messages promptly, even if you need more time.

Conclusion

Although tax returns may seem complicated, with proper preparation, step-by-step checks, and recordkeeping, the process is manageable and predictable. Staying alert to myGov notifications, retaining all evidence, and carefully reviewing your Notice of Assessment are the three keys to avoiding unnecessary issues after lodgement.