A tax return is an ATO obligation which reconciles the tax you have paid with the tax you should have paid in a financial year (for the period of July 1 – June 30). A tax return includes your income and deductions that generate your taxable income.

Knowing your income and deductions is important in ensuring you lodge a correct tax return. The ATO has the power to audit and issue fines should you not follow the rules and guidelines of a tax return. Below is a checklist of what might need to be included in your tax return:

Income

• Employment income (PAYG Payment Summary or Income Statement),
• Government allowances (Youth allowance, Austudy, JobSeeker, JobKeeper),
• Interest (bank and cash management accounts),
• Share dividends,
• ABN income,
• Family trust distributions, or
• Asset disposal (capital gain/loss).

Deductions

• Car travel / motor vehicle expenses (logbook or km estimate),
• Laundry / dry cleaning / work uniforms,
• Travel (fares, taxis, ubers, flights and accommodation),
• Memberships / subscriptions,
• Self-education and professional development,
• Conferences / seminars,
• Reference books / library / journals,
• Stationery / printing,
• Equipment,
• Home Office (two methods – actual expenses or 80 cents per hour)
• Mobile phone and internet,
• Union fees,
• Donations,
• Accounting fees, or
• Working with children and police checks.

Other stuff to include

• HELP debt,
• Private health insurance, or
• Superannuation contributions.

Keep in mind that deductions must correlate to your current full time or part-time job and specific rules must be followed in order to claim the deductions. Receipts and invoices should be kept and the ATO has the right to ask for further evidence when claiming any deduction.

Your employer (the hospital) will withhold tax every fortnight from your salary and pass it onto the ATO. It is their obligation not the employees. You do have an obligation to complete a tax return which is a reconciliation of the tax you have paid after every financial year.

HECS-HELP repayments are based on your Adjustable Taxable Income which includes your total income (including overtime) and salary packaging. Click here for the details of rates and income levels.