Tax time tips for young Australians

Tax time tips for young Australians 

Starting your working life is an exciting milestone, and understanding tax is a key part of building good money habits. Getting the basics right can help you avoid errors, claim what you are entitled to, and feel more confident at tax time. 

Why it matters more than you think 

Research commissioned by the Australian Taxation Office (ATO) found that young Australians' knowledge of tax and superannuation (super) is low, particularly when it comes to understanding why tax exists, how to lodge a return, and where to turn for help. 

Many young people lodge their first tax return without really understanding what they are doing or why. 

The basics: what you need to know 

The financial year runs from 1 July to 30 June, which is different from a normal calendar year. When the year ends on 30 June, most people who earned income need to lodge a tax return, which tells the ATO what you earned and how much tax was withheld from your pay. 

If you worked a part-time job, a casual shift here and there, or picked up freelance work this year, this applies to you. 

Your tax time checklist 

• Declare all of your income. Every job counts, and so does freelance work or selling goods online if you are running it as a business. The ATO receives data from employers and many platforms directly, so it pays to be thorough. 

• Know what you can claim. If you paid for something you needed for work and your employer did not reimburse you, such as tools, a uniform, or study, you may be able to claim it as a deduction. You cannot claim something just because it is useful, it needs to be genuinely work-related. 

• Keep your receipts. The ATO myDeductions app is a simple, free way to track expenses as you go rather than scrambling at year end. 

• Wait before you lodge. Your income statement, which is your end-of-year pay summary from your employer, needs to be marked as finalised before you lodge. This usually happens in mid-July. Lodging too early with incomplete information can mean errors and delays. 

• Get your myGov account set up. You will need a myGov account linked to the ATO to lodge online. It is worth getting this sorted before tax time rather than on the day. 

• Apply for your tax file number (TFN) if you do not have one. A TFN is your personal reference number in Australia's tax and super systems. Without one, your employer is required to withhold tax from your pay at the highest rate. 

Do not forget about super 

Superannuation is money your employer is required to set aside for your retirement. The current rate is 12% of your ordinary earnings. It is easy to overlook, especially early in your career, but small balances left in forgotten accounts can quietly be eroded by fees. 

If you have had more than one job, check whether you have more than one super account. Consolidating them is straightforward and can save you money in the long run. Your myGov account is a good place to start. 

Not sure where to start? 

Tax does not have to be complicated, and it's worth getting right from the beginning. Boyce is one team across many locations, and our advisors work with clients at every stage of life, including those lodging their very first return. 

Boyce shares practical resources and hosts free events to help young Australians build confidence with tax and money. Subscribe to the Boyce newsletter for updates.