Talking tax: It’s time to talk about tax returns

Congratulations on your first job and welcome to the annual task of lodging a tax return.

To prepare your tax return, first you need your total income from your employer for the year.

Your employer should have provided you with a PAYG payment summary. This will show your annual income, including your salary and any allowances, and the tax that was withheld from your pay throughout the year. 

Employers must provide a PAYG payment summary to all their employees by July 14.  So speak to your employer if you are yet to receive yours. 

Secondly, you will need the details of any other income you have received throughout the year. This could include interest earned on bank accounts or dividends you may have received.

Once you have your total income, this goes part way to determining the amount of tax you need to pay. 

You can then reduce your income by any work-related expenses you have paid for during the year.  

However, you can’t claim an expense that your employer has reimbursed.

Examples of work expenses you could claim include uniforms, laundry, equipment and tools, travel expenses, mobile phone and stationary.

You must have receipts for all the expenses you wish to claim as a tax deduction if they total more than $300.

Given it’s your first tax return, you may be better off speaking to a tax agent who can help you with exactly what you can claim. 

Otherwise you can lodge a tax return yourself, either online using myTax or a paper form. If you do, it is due by October 31.

For more information, access the Australian Taxation Office webpage or see a tax agent.