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Before you lodge

Tips and links to help check your clients' tax returns before lodging and avoid delays.

Last updated 30 June 2023

Tips and links to help check your clients' tax returns before lodging and avoid delays. Before lodging your clients' tax returns you should:

Processing may be delayed if there are incorrect or incomplete details in returns.

If your client is claiming the Medicare levy exemption they will need to obtain a Medicare Entitlement Statement from Services Australia before lodging their tax return. They need to complete this form each year they wish to claim the exemption.

If your client does not qualify for an exemption, they will be subject to a Medicare levy of 2% of their taxable income. This applies regardless of whether or not they have private health insurance.

In addition to the Medicare levy, your client may have to pay the Medicare levy surcharge. This applies if they do not have the appropriate private patient hospital cover for any period during the financial year and they earn above a certain income.

You cannot claim the net medical expenses tax offset in the 2019–20 and later income years. Legislation passed in 2014 abolished this offset from 1 July 2019.

Follow these links for what else to consider before lodging your clients' tax returns:

Find out about the tests we use to work out residency status for your clients for tax purposes.

Find out what foreign income your clients need to declare on their tax returns.

Find out how to prevent delays in processing tax returns and when longer processing times may occur.

If your client's taxable income is under the tax-free threshold, they may still need to lodge a tax return.

Ensure your clients provide all their income when lodging their tax return early as we match it with third-party data.

If your clients are engaged in the sharing economy, include their income and deductions in their tax returns.

If a client's business has changed purpose over time, update the business industry code when lodging their tax return.