FAQ What is assessable income?

Assessable income in Australia is income that can be taxed. Even though it is assessable, tax may not be payable if the income for the year ended 30 June is less than the appropriate tax-free threshold. Examples of assessable income include:

  • salary and wages
  • interest from bank accounts
  • dividends and other income from investments
  • bonuses and overtime an employee receives
  • business profits
  • commission a salesperson receives
  • pensions
  • rent
FAQ What is exempt income?

Exempt income is income that cannot be taxed - ie. not assessable. However, exempt income, although not taxable, may be used to assess other government benefits and liabilities (eg Family Tax Benefit, Centrelink entitlements and child support liability). Examples of exempt income include:

  • some government pensions and payments, including the invalidity pension
  • some education payments.
FAQ What is an ATO assessment Notice?
After the ATO has processed your tax return you are issued with a "Notice of Assessment". This will tell you if you are entitled to a refund, or if you have a tax debt to pay and how the amount was calculated. It may also included debit or credit adjustments for outstanding amounts to pay, HELP or SFSS debt and FTB adjustments.
FAQ Are same sex couples recognised?
From 1 July 2009, changes to definitions of ‘spouse’, ‘defacto relationship’, ‘relationship’ and ‘child’ will ensure that you will be treated the same way for tax purposes, including the same access to tax concessions, regardless of your partner's gender.
FAQ How do I correct a mistake in my return?

If you have made a mistake on your tax return you should amend it as soon as possible. Amendments are now only available for the past 2 years. There are two ways to request an amendment:

  • Submit a written request to the Tax Office
  • EzTax can prepare and lodge an "Amended" tax return on your behalf. Lodged electronically, it is processed much faster than written requests.
FAQ Am I entitled to claim $300 work related expenses as this does not have to be substantiated?
No you cannot just claim $300. You must actually incur work related expenses before they can be claimed. Whilst you may not need receipts for expenditure up to $300 you must have still spent the money and it must be relevant to your employment.
FAQ Is there a limit on how much I can claim as a tax deduction each year?
There is no limit on the amount claimed each year. However, the ATO allows work related deductions of up to $300 without receipts. The expenditure must be work related and you may need to keep receipts to substantiate the expenditure if it is over $300. Keeping incomplete, incorrect or no records at all may limit your ability to claim deductions.
FAQ I have not received or lost my PAYG Payment Summary. How can I get a copy?
If you can’t obtain another copy from your employer you can:
  • Complete a Statutory Declaration with an estimate of the details
  • Write to the ATO to request information
  • Request EzTax to obtain information directly from the ATO
FAQ I have a HELP/SFSS debt and my employer has been withholding extra amounts of tax from my pay. Why hasn't the balance of my Higher Education Loan Programme (HELP) account been reduced?
Your employer will withhold additional amounts from your pay throughout the year to cover your anticipated tax liability and compulsory HELP repayment. The amounts withheld are not directly credited to your HELP/SFSS account during the income year. Instead, they will accumulated through the year and applied to your debt on completion of your tax return. This is when your final HELP/SFSS debt will be determined.
FAQ When do I have to lodge my tax return?
If you prepare and lodge your own tax return, the lodgment deadline is 31 October each year. Tax Agents have their own lodgement deadlines. To obtain the tax agents extension you must contact our office before 31 October to register.
FAQ How long should you keep your records?
Generally, you must keep your written evidence for five years from the date the notice of assessment is sent to you, or:

  • if you have claimed a deduction for decline in value (formerly known as depreciation), five years from the date of your last claim for decline in value
  • if you acquire or dispose of an asset, five years after it is certain that no capital gains tax (CGT) event can happen for which those records will be needed to work out a capital gain or loss, and
  • if you are in dispute with the Tax Office, the later of five years from the date you lodge your return or when the dispute is finalised.
FAQ I’ve lost my receipts. Is a credit card slip acceptable as a receipt?
Yes, provided it gives full details of the supplier and date of purchase. Taxpayers can make a notation on the receipt indicating the type of goods that were purchased. Many taxpayers use the internet to purchase or pay for their work related expenses. The ATO will accept Bpay or email receipts provided they contain the necessary information: date, supplier, nature of the goods and the amount.
FAQ I have kept receipts for my childs education expenses. Can I claim for these costs?
Yes. On 1 July 2008 the Government introduced a 50% Education Tax Refund on eligible educational expenses. Parents who receive FTB Part A with children undertaking primary or secondary school can claim costs up to $750 (Primary) and $1500 (Secondary). Generally, amounts in excess of these limits can be carried forward and claimed in the next year.
FAQ What is negative gearing and how can it save me tax?
Negative gearing is a common term and describes an investment that generates a net loss with the expectation of future capital gains and results in tax savings. You can learn more about negative gearing and taxation in our ebook titled “Discover Wealth Hidden in your Salary – A Simple Guide to Taxation & Property Investment in Australia”
Australian Tax Return Knowladgebase.