Show download pdf controls
  • Tax in Australia: what you need to know

    You can download a copy of – Tax in Australia: what you need to know (PDF 736 KB)External Link.

    Why we pay tax

    Tax is money people and businesses pay to the Australian Government to provide services including:

    • health
    • education
    • defence
    • roads and railways
    • social security and other payments from Centrelink.

    As Australians we enjoy access to a good health system, quality education and a variety of community facilities (for example, parks and playgrounds) which are supported through tax collections.

    Permission to work in Australia

    If you are a foreign resident, you must get permission from the Department of Home Affairs before you start work in Australia. Home Affairs can provide you with useful information including which visas allow you to work in Australia.

    For more information about permission to work in Australia contact Home Affairs.

    Next step:

    How much tax you will pay

    The amount of tax you pay depends on:

    • whether you are an Australian resident for tax purposes
    • how much income you earn
    • whether you have a tax file number (TFN) – this is a personal identity number which you should tell your employer.

    If you begin work before you have a TFN, you have 28 days to get one and give it to your employer. If you don't, your employer must take tax from your pay at the highest rate.

    See also:

    Getting a TFN

    Before starting work we recommend you get a TFN otherwise you'll pay more tax. We issue TFNs to individuals, businesses and other organisations for identification and record keeping purposes.

    Applying for a TFN

    There are various ways to apply for a TFN. How you apply will depend on your circumstances.

    To find out more about how to apply, go to:

    If you are migrating to Australia or hold a temporary resident visa that allows you to work in Australia, you can apply for a TFN online.

    To apply online, go to:

    When completing your application, you will require documents that prove your identity.

    It can take up to 28 days to process your TFN application, and send your TFN to your address.

    Keeping your TFN safe

    Your TFN is with you for life, so keep it secure. You keep the same TFN even if you change your name or address, change jobs, move interstate, or go overseas.

    Don't let anyone else use your TFN, even friends or relatives. Allowing someone else to use it, giving it away or selling it is a crime.

    Only give your TFN to:

    • us when discussing your tax records
    • your employer after you begin work, but don't provide it on job applications
    • your bank or other financial institutions
    • Centrelink
    • your registered tax agent
    • your superannuation (super) fund.

    Report any loss, theft or misuse of your TFN to us immediately by calling 1800 467 033.

    Keeping your TFN and other personal identity details secure helps prevent identity crime. Identity crime happens when people's identity details are used to commit crimes.

    Scam emails, faxes, SMS and phone calls can look and sound very convincing. Be aware and if you're unsure a communication is from us call our scam hotline 1800 008 540.

    See also:

    Australian business numbers (ABN) are for business

    Not everyone is entitled to or needs to have an ABN to work in Australia. Having an ABN means you:

    • are running your own business
    • have to pay your own tax to us
    • may need to pay for your own super
    • may not be insured if you're injured.

    See also:

    Lodging a tax return

    You need to lodge a tax return to tell us:

    • how much income you have earned from working, or from interest on bank accounts or investments
    • how much tax has been withheld, so how much money is taken out of your pay by your employer and sent to us
    • about any deductions you are claiming.

    To lodge your return, you will need a payment summary. Every employer you work for must provide you with a payment summary by 14 July after the tax year or when you leave them.

    Contact your employer if you have changed your address.

    Generally, you will need to lodge a tax return if you pay tax during the financial year from 1 July to 30 June. If you’re unsure whether you need to lodge, use our Do I need to lodge a tax return tool below to find out.

    Next step:

    Complete and lodge your tax return

    Lodge online using myTax

    You can lodge online using myTax. It is the quick, easy, safe and secure way to lodge online.

    Next step:

    Lodge using a registered tax agent

    You can use a registered tax agent to prepare and lodge your tax return. You can find a registered tax agent, or check whether a person is a registered tax agent, by visiting the Tax Practitioners boardExternal Link (links to an external website).

    Extra help to lodge

    If you need help to lodge your tax return, you might be able to use the Tax Help program.

    Tax Help is a group of ATO-trained and accredited community volunteers who provide a free and confidential service to help people complete their tax returns online using myTax. It's available from July to October, in all capital cities and many regional areas across Australia.

    Next step:

    When to lodge

    If you are preparing and lodging your own tax return, you must lodge it by 31 October. If you are using a tax agent for the first time or a different agent to last year, you must contact them by 31 October.

    If you don't lodge your tax return and pay any amounts you owe us, you may have to pay penalties.

    Work-related expenses

    Work-related expenses may be tax deductible if you have spent money on something to help you earn your income. You must be able to show that:

    • the expenses directly relate to earning income
    • the expenses are not private in nature
    • you have a record to prove your expenditure.

    See also:

    Record keeping

    When you lodge your tax return, we process it and work out whether you have paid the right amount of tax. We let you know the result by sending you a notice of assessment. Generally, you must keep records such as receipts for any deductions you claim for at least five years from the date you lodge your tax return.

    See also:

    Superannuation

    Super is Australia's retirement savings system. It is money set aside over your working life to provide for your retirement.

    When starting a new job, it's important for you to understand how super works and to know your rights and entitlements. Decisions you make now and in the future will affect your lifestyle when you retire.

    Compulsory employer super contributions are in addition to your salary. Most people can choose which Australian super fund these contributions are paid into.

    Generally, if you are paid $450 or more in a calendar month, your employer must contribute a percentage of what you earn into a super account for you.

    See also:

      Last modified: 02 Jan 2019QC 57521