Frequently Asked Questions | ATO Insights Hub

General ATO Questions

What is the role of the Australian Taxation Office?

The Australian Taxation Office (ATO) is the government's principal revenue collection agency. Its role includes managing and shaping tax, excise, and superannuation systems that fund services for Australians. The ATO is responsible for collecting revenue, administering the goods and services tax (GST) on behalf of the Australian states and territories, administering a range of programs that provide benefits to the community, and managing the Australian Business Register.

What is a Tax File Number (TFN)?

A Tax File Number (TFN) is a unique identifier issued by the ATO to individuals and organizations. It is used to identify you in the tax and superannuation systems. Your TFN remains the same throughout your life, even if you change your name, address, or occupation. It's important to keep your TFN secure as it can be used to access your tax records.

How does the financial year work in Australia?

In Australia, the financial year runs from July 1 to June 30 of the following year. This means that the 2022-2023 financial year spans from July 1, 2022, to June 30, 2023. Tax returns for a financial year are typically due by October 31 following the end of the financial year, unless you are using a registered tax agent who may have extended deadlines.

Online Services and myGov

What is myGov and how does it relate to the ATO?

myGov is a secure online portal that allows you to access a range of Australian government services, including the ATO. By linking your myGov account to the ATO, you can access ATO online services where you can lodge your tax return, view your super, manage your tax affairs, and access a range of other tax-related services and information.

myGov provides a secure way to access various government services online.

What information can I access through ATO online services?

Through ATO online services, you can access a wide range of information and services, including: your tax return history, income statements and payment summaries, tax assessments, super information, study and training support loan details, income tax account balance, and more. The platform also allows you to update your contact details, banking information, and manage your tax affairs.

How secure is my information in ATO online services?

The ATO employs robust security measures to protect your personal and financial information. This includes secure login processes, often with multi-factor authentication, encryption of data, and continuous monitoring for unauthorized access. The ATO never sends emails or SMS messages with links asking for login credentials or personal information. It's important to keep your myGov and ATO login details secure and to regularly monitor your accounts for any unusual activity.

Tax Returns and Lodgment

When do I need to lodge my tax return?

For most individuals, tax returns for the previous financial year are due by October 31. For example, for the financial year ending June 30, 2023, the tax return would be due by October 31, 2023. If you use a registered tax agent, you may have an extended deadline, but you typically need to be registered with them before October 31.

What happens if I don't lodge my tax return on time?

If you don't lodge your tax return by the due date, you may be charged a failure to lodge (FTL) penalty. This penalty can increase the longer your return remains outstanding. If you're expecting a refund, there's generally no penalty for late lodgment. However, if you have a tax debt, interest may be charged on the outstanding amount from the due date until it is paid.

Keeping track of lodgment deadlines is important to avoid penalties.

What is pre-filling and how does it work?

Pre-filling is a service provided by the ATO that automatically fills in certain information in your tax return based on data received from third parties. This information can include salary and wages, dividend income, interest from banks, government payments, private health insurance details, and more. The pre-filling service is designed to make completing your tax return easier and more accurate. However, it's important to review all pre-filled information for accuracy and completeness, as some information may not be available or may be incorrect.

Deductions and Tax Offsets

What are tax deductions?

Tax deductions are expenses that you can subtract from your taxable income, thus reducing the amount of tax you pay. To be deductible, an expense must be directly related to earning your income and not be private, domestic, or capital in nature. Common deductions include work-related expenses, certain charitable donations, and expenses related to managing tax affairs.

What records do I need to keep for my tax deductions?

For most deductions, you need to keep records such as receipts, invoices, or other documentation that substantiates your claims. These records should show what you purchased, when, from whom, and how much you paid. The ATO generally requires you to keep these records for five years from the date you lodge your tax return. Digital records are acceptable, provided they are clear and contain all the necessary information.

What is the difference between a tax deduction and a tax offset?

A tax deduction reduces your taxable income before tax is calculated, whereas a tax offset (also known as a tax rebate) directly reduces the amount of tax you pay. Tax offsets are applied after your tax has been calculated. For example, a $100 tax deduction might reduce your tax by $32.5 if you're in the 32.5% tax bracket, while a $100 tax offset would reduce your tax by the full $100. Common tax offsets include the low income tax offset, seniors and pensioners tax offset, and the low and middle income tax offset.

Superannuation

How does the ATO manage superannuation information?

The ATO maintains records of your superannuation accounts and can help you find lost or unclaimed super. Through ATO online services, you can view your super accounts, check your employer's contributions, and even consolidate multiple super accounts. The ATO also ensures employers meet their superannuation guarantee obligations and administers various super programs and benefits.

The ATO helps manage superannuation information for your retirement planning.

What is the Superannuation Guarantee?

The Superannuation Guarantee (SG) is the system that requires employers to contribute a percentage of an employee's ordinary time earnings to their superannuation fund. Currently, the SG rate is 11% (as of July 2023), though this rate is scheduled to increase gradually in the coming years. Employers must make these contributions at least quarterly. The ATO oversees employer compliance with the SG system.

How can I check if my employer is paying the correct superannuation?

You can check your super contributions through ATO online services. Your super fund should also provide regular statements showing contributions received. Employers are required to report super contributions to the ATO when they pay them, which allows you to verify whether your employer is meeting their obligations. If you believe your employer is not paying the correct amount, you can report this to the ATO.