The official deadline of 31st October for individual tax returns can come and go frighteningly fast. If you work with a tax accountant, you’ll get a welcome extension on that deadline. But that too can sneak up on you if you’re not careful! Thankfully, a little bit of organising can ensure you never have to experience the horrible shock of realising you‘ve missed the tax return deadline.
We’ve been preparing tax returns for Australians for 50 years and counting. So our accountants know exactly what it takes to make tax time smooth and stress-free. Our experienced tax agents have assembled their most valuable insights in this guide—from practical preparation tips and receipt management strategies to the ATO’s golden rules for claims.
We cover essential deadlines, potential penalties, smart tax optimisation strategies, and year-round planning approaches that can transform your tax experience from stressful to smooth. Plus, we explain how working with a registered tax agent can give you that crucial extra time when you need it most.
Prepare Well Before the Tax Return Deadline Hits
It pays to be organised. Many people are held back by getting a full year’s worth of work-related receipts and expenses together. But with a little monthly (or even weekly) organisation, there won’t be any battle. Using an app to log and catalogue your receipts as you get them is an easy way to be prepared ahead of time.
Of course, your tax return covers more than just your salary and work expenses. So, setting up a system to track all your income sources and potential deductions throughout the year makes sense.
Pro tax tip: Each profession has its own specific deductible expenses—download ITP’s tax guide for your profession to understand exactly what you can claim.
Save Your Receipts the Smart Way
It’s important that you have receipts to back up your claims. Although you’ll have your bank statements, these records may not contain enough information about the transaction to satisfy the ATO that your expenses were work-related.
With this in mind, it’s a good idea to photograph all work-related receipts. Though it’s frustrating to have to store paper copies, it’s definitely a good idea to keep them somewhere safe in case something happens and you lose the digital copies.
Pro tax tip: The ATO can request to see receipts for up to five years from when the expense was incurred. So keep your tax records in dated files, and feel free to shred documents once they pass the five-year mark.
The ATO’s Golden Rules for Deductible Expenses
Come tax time, there are three golden rules that tell you whether you can claim an expense.
Those rules are:
- The expense must directly relate to earning your income
- You must have paid the cost yourself
- You must have the records to prove it
Each year, the ATO improves upon its ability to identify and look into unusual claims. The 2024-25 tax year will be no different. In recent years, they’ve been paying particular attention to work-from-home expenses, with new simplified hourly rates introduced to reflect hybrid working arrangements.
Private expenses mixed with work-related costs are under scrutiny too—especially vehicle expenses and home office claims. To stay off their audit radar, ensure all your claims are genuine and proportional. For example, if you use your home internet for both work and private purposes, you can only claim the work-related percentage. Keep detailed records showing how you calculated these percentages—the ATO may ask to see them.
Individual Tax Return Deadline for Australians
The Australian income year ends on the 30th of June. You then have from the 1st of July to the 31st of October to lodge your individual tax return. While this might seem like plenty of time, there’s a catch—it’s wise to wait until at least late July or August to lodge.
Why the wait?
Many of your pre-fill records, including payment summaries, bank interest, dividends, and private health insurance details, can take time to be processed and shared with the ATO after June 30. According to the ATO website, most pre-fill information is ready by late July, but some data can take until mid-August to appear in the system. Lodging too early risks submitting an incomplete return that omits crucial information.
This timing creates a relatively narrow window for lodgement—typically between mid-August and October 31. The good news? Our guidance in the following sections will help you make the most of this period, ensuring you have everything ready to go when the time is right.
Pro tax tip: Working with a registered tax agent is the best way to give yourself valuable breathing room beyond the October deadline. More on that coming up.
Planning to leave Australia permanently or for an extended period?
Whether you’re a foreign resident returning home or an Aussie heading overseas for an extended period, you might be eligible to lodge your tax return early. If you qualify, you’ll need to lodge a paper return, and the ATO may take up to 50 business days to process everything. You can learn more about early tax return lodgment on the ATO website.
Alternatively, depending on your circumstances, you may be able to lodge your tax return online while overseas. Just note that you’ll need to set up your myGov account for overseas access before you leave Australia. Otherwise, you may get locked out of your account.
Penalties for Missing the Tax Return Deadline
The ATO can impose hefty fines if you lodge your tax return after the 31st of October individual tax deadline. And these can start adding up from the 1st of November. Put simply, the longer you go without lodging your return, the more you’ll incur.
READ LAST MINUTE TIPS TO GET A BIGGER TAX RETURN
Maximum Late Lodgement Penalties for 2024-25
1 – 28 days: $330
29 – 56 days: $660
57 – 84 days: $990
85 – 112 days: $1,320
113+ days: $1,650
Making Tax Season Work For You
The art of stress-free tax lodgement comes down to creating systems that serve you year-round. A dedicated email folder for receipts and invoices, coupled with a simple spreadsheet tracking your expenses, can be all it takes.
Some people swear by the shoebox method—and sure, it’s better than nothing—but digital systems mean your documents are searchable, safe from coffee spills, and impossible for your dog to mistake for a chew toy.
When setting up your tracking system, break down your expenses into clear categories that mirror the ATO’s deduction types. That way, your data will slot neatly into your tax return like pieces of a well-designed puzzle.
So that would mean putting work-related vehicle costs in one column, home office expenses in another, professional development in a third—you get the drift. This method makes it simple to spot patterns in your spending and identify areas where you might be missing legitimate deductions.
Pro tax tip: Check out our ultimate guide to tax deductions to see if there’s anything you’ve been missing out on.
Smart Strategies for Maximum Returns
Tax optimisation is about playing the long game. While rushing to buy deductible items on June 30th might feel productive, strategic year-round decisions typically yield better results. Consider scheduling major work-related purchases when they make sense for your role and business, rather than cramming them into the end of the financial year.
Understanding the timing of your deductions can make a significant difference to your return. For instance, prepaying certain expenses like professional subscriptions or union fees can allow you to deduct them in the current financial year, even if they relate to the following year.
Similarly, timing the sale of investments can help manage your capital gains tax exposure. Though, for more complicated issues like this, it’s worth consulting a tax professional about your specific situation.
Keep an eye on ATO announcements throughout the year. The tax office regularly updates its guidance on deductions, especially around emerging areas like cryptocurrency investments and remote work expenses.
What was deductible last year might not be this year, and vice versa. Some lesser-known deductions, like specific industry clothing repairs or professional library resources, can be overlooked but add up over time.
How to Get a Tax Deadline Extension
If you do need more time, there is a loophole—in fact, you can have up to 6 extra months. All you have to do is use a registered tax agent to lodge your income tax return. Just note that, to avoid incurring a late lodgment penalty, you’ll need to be on your tax agent’s books by the 31st of October. This is crucial to get the extension.
Remember when lodging your tax return, to report all of your income from all income streams, including interest from bank accounts, dividends, rent, and more. Your tax agent will help you work out what you’ll need to lodge. They’ll also help you claim everything you can to minimise your tax burden.
ITP’s Income Tax Professionals help over 200,000 Australians each year with their personal tax returns. If you can’t get into a branch, one of our tax agents can conduct your tax return over the phone, via email, or through our remote service. Speak with a tax professional today, and never miss the tax return deadline again!