How to Lodge Your Tax Return Step by Step Without Missing a Deduction?

Lodging tax returns is a regular part of the year for taxpayers. With a bit of early preparation, the process is simple and you can make sure every eligible deduction is claimed. Whether you do it yourself through myGov or work with an agent, being aware of the key steps can help you to submit all details smoothly, along with the payable taxes.

In this blog, we will discuss the seven essential steps to prepare all essential documents required for both offline and online tax returns compliant to the ATO (Australian Taxation Office).

Step 1: Gather All Necessary Documents

The first thing to do in your individual tax return is to gather up all the documents. That covers employer income statements, bank interest statements, shareholder dividend statements, managed fund statements, and any Centrelink or other government payments.

Keep receipts of work-related expenses, receipts of donations, personal health information and anything with regard to investments or rental properties. The ATO requires you to retain such records within a period of five years as of the date of lodgment. Their myDeductions feature within the ATO app can help you save receipts and record car trips as they happen.

Step 2: Determine Your Tax Return Type

Your income type will depend on the way you earn and spend income. Some of the common tax return types include:

• Sole trader tax return: If you are a self-employed person, you file under your name. Business income and expenses are also reported together with personal income using the Business and Professional Items schedule.
• Company tax return: A Company return is not the same as your individual return. Businesses are entitled to their own TFN and ABN, and are required to file according to company regulations and deadlines.
• Partnership tax return: The partnership itself documents the income and expenses. Then each partner makes a statement regarding its share in its own individual return. Partnerships make use of a TFN without direct taxation.
• Family Trusts Tax Return: The trust files a tax return and the beneficiaries indicate their portion of the net income on their independent tax return.
• SMSF Tax Return: This is also referred to as the SMSF annual return. It may only be lodged after the audit of the fund is completed. The deadlines are different depending on whether the fund is new and the past returns are being delayed.

Step 3: Claim All Eligible Deductions

It is in deductions that most individuals lose out. There are three rules to get tax deductions: you must have used the money personally, the expense must be directly related to your earnings, and you must have records to show it.

Working from Home

You may apply the fixed-rate method of 70 cents an hour during the year 2024-25. This includes internet, telephone, electricity, vehicle fuel, stationery and computer consumables. But, you must have the record of the hours worked at home and at least one bill of each type of expense. Or you can claim the actual costs, though you have to keep records and computations.

Car Expenses

You have the option of the cents per kilometre payment, which is 88 cents per kilometre to 2024-25, up to 5,000 km per car. Alternatively, the logbook approach to file tax return Australia allows taxpayers to claim the business-use percentage of actual expenses.

Rental Properties

You are allowed to claim repairs, interest on loans and property management expenses. However, you have to distinguish between repairs and improvements. Repairs that are undertaken initially when you purchase the property are usually considered capital works and can be claimed over time. During the lodgement of investment property tax returns, being aware of this difference can help you to claim the expenses in an efficient way.

Step 4: Choose Your Lodgement Method

There are two main ways to lodge tax returns. You can lodge tax return online by using the myTax system in myGov, or with the help of a registered tax agent. Online lodgement is usually completed in two weeks, and offline returns may take ten weeks.

If your taxation is simple, you can simply file it online. However, approaching a BAS agent for tax return help can be a great option in instances of complex business or investment portfolios. There are also more extended deadlines given to the agents, but you need to be on their client list by 31 October.

Step 5: Review Before Submission

If you’re lodging a late tax return, rushing can lead to errors. To avoid inaccuracies in your income statements and missing deduction claims, revise these aspects in your tax returns:

• Make sure the ATO data that is pre-filled corresponds with your personal records
• Confirm your bank account details to receive any refund
• Check up on your own health insurance
• Make sure that you are not incurring 2 claims if using the fixed-rate method for working from home

Step 6: Submit Your Tax Return

When you are prepared, fill in your return and retain the receipt number to prove that you submitted it. If you have used the myTax portal, your notice of assessment will be sent to your myGov Inbox. In case you would like to make a change later, you can apply to make an amendment online. Last, but not least, you should ensure that your return is filed before the deadline to avoid penalties.

Step 7: Plan for Next Year

Once you’ve lodged this year’s business tax return or individual return, it’s a smart choice to prepare for the next one. Balance accounts on a regular basis, store the paperwork in digital forms, and use software such as myDeductions to trace the work and car costs. To avoid building up tax time in June, businesses can note the BAS and PAYG due dates in digital records. Retain all records at least five years, and longer when the records involve assets subject to capital gains tax.

Also read: How to Calculate Your Business Tax Return Estimate

Conclusion

The personal income tax return requires a disciplined approach. You collect what you need, find the correct type of return, claim all deductions, and select the mode of lodging that suits you. A careful review prior to filing will help in avoiding penalties during tax season. After the year’s tax submission is completed, make a simple habit of saving receipts and notes, and the subsequent filing will be easy with fewer anxieties and better refunds.

FAQ’s

1. When is the deadline to lodge a tax return in Australia?

For individuals lodging themselves, the deadline is 31 October each year. If you use a registered tax agent, you may get an extended deadline, but you must be on their client list by 31 October.

2. Can I lodge my tax return myself or do I need a tax agent?

Yes, you can lodge it yourself via myTax in myGov. However, using a registered tax agent is recommended if you have complex deductions, investments, or business income, as they can help you maximise your refund and avoid errors.

3. What documents do I need to lodge my tax return?

You’ll need:

• Employer income statements

• Bank interest & dividend statements

• Managed fund statements

• Government payment summaries (e.g. Centrelink)

• Receipts for work-related deductions & donations

• Rental property and investment records

4. How long should I keep my tax records?

The ATO requires records to be kept for 5 years from the date of lodgement. For assets subject to capital gains tax, keep records for longer.

5. What deductions can I claim on my tax return?

You can claim:

• Work-related expenses (e.g. WFH, travel, tools)

• Charitable donations

• Rental property expenses

• Investment-related costs

• Self-education expenses (if relevant)
  All claims must meet ATO’s three golden rules: you spent the money, it relates to your income, and you have records.

6. How do I claim working-from-home expenses?

For 2024–25, you can use the fixed-rate method (70 cents/hour), which covers internet, electricity, phone, stationery, and consumables. Alternatively, use the actual cost method with detailed records.

7. What’s the difference between individual, sole trader, and company tax returns?

• Individual: For personal income.

• Sole Trader: Business income is reported in your personal return using the Business & Professional Items schedule.

• Company: Lodged separately with its own TFN & ABN.

• Trusts & Partnerships: File separate returns; income is distributed to beneficiaries/partners.

8. What happens if I lodge my tax return late?

The ATO may apply Failure to Lodge (FTL) penalties, which increase the longer it’s overdue. You may also risk losing deductions or refunds. It’s best to lodge ASAP or contact a tax agent for help with late returns.

9. How long does it take to get a tax refund?

• Online via myGov: Usually within 2 weeks

• Paper lodgement: Can take up to 10 weeks
  Using a tax agent may sometimes take longer if extra information is required by the ATO.

10. How can a tax agent help with my tax return?

A registered tax accountant or BAS agent can:

• Identify deductions you may miss

• Ensure ATO compliance

• Lodge on your behalf with extended deadlines

• Minimise tax payable and maximise refunds

• Handle complex returns (investments, business income, SMSFs)