Australian Tax Year Dates

Australian Tax Year Dates

Australia’s financial year runs astray from your run-of-the-mill calendar.

The time period covered by Australia’s tax returns does not correspond to a regular calendar year. Instead, the tax year begins in July and ends in June of the following year. Of course, that’s not to be confused with the tax season which will take you on a 4-month stretch from July to October.

Don’t wait until the October deadline to lodge your tax return! Instead, it’s best to get it out of the way as soon as possible.

When does the financial year start and end?

The Australian tax year (aka financial year) begins smack-dab in the middle of your calendar year on 1 July and ends 30 June of the following year. That means that all of your financial successes and mishaps that occur during that time will be reflected on your tax return for that year.

That brings us to the tax season. This begins on 1 July and ends on 31 October each and every year. You have these four months to lodge your current year tax return on time without having to worry about any ATO penalties.

What if I lodge after the deadline date?

If you fail to lodge your return by the end of tax season on 31 October, you may have to pay a penalty.

The ATO is pretty generous, however, and usually doesn’t apply a penalty if you:

  • lodge the return voluntarily, and
  • do not owe any tax payable

On the other hand, you most likely will have to pay a penalty if:

  • you have more than one tax return outstanding
  • you have a poor lodgment history, or
  • you have not complied with a request to lodge your tax return

If you’re due a refund, there’s no reason not to file. After all, it’s your money you’re getting back.

If you owe the ATO, don’t think you can escape them by not lodging a return. The ATO could issue you a default assessment warning letter (DAWL). If you don’t lodge, the ATO will estimate your tax liability, often for more than you actually owe because they don’t know all of the allowances and deductions you could be eligible for.

Early lodgment

It is possible to lodge a tax return before the end of the financial year, but only in two very limited circumstances.

1) You are a foreign resident for tax purposes (an Australian nonresident) and you

  • are leaving Australia permanently, and
  • will no longer earn Australian-sourced income other than interest, dividends, and royalties

2) You are an Australian resident for tax purposes and you

  • are leaving Australia
  • will cease to be an Australian resident for tax purposes, and
  • will no longer derive Australian-sourced income other than interest, dividends, and royalties.

Now it’s time to mark your calendars!

Let’s recap. Grab your agenda, smartphone, or personal assistant and make sure these dates are scheduled:

1 July: This date marks the start of the new tax (financial) year AND the start of the current tax season.

30 June: This day marks the end of the tax (financial) year.

31 October: This is the tax season deadline.

Today: And today is the day to either get caught up on lodging prior year tax returns or preparing your current year tax return. Need help? E-Lodge allows you to lodge right from the comfort of your own home!

WATER SPORT

Updated 27 July, 2016

 

 

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26 Responses to “Australian Tax Year Dates”

  1. Sofia gheorghiu says:

    Hello

    I am from Moldova and I worked in Australia for 6 mounths on a internship visa. On the 14th of January I left Australia. I have been told by my previous employer that if I apply for my tax refund before the end of the financial year, this will mean that I can never work in Australia again. Is this true???? I have no plans to return to Australia to work any time soon as I am now moving to the uk to be with my partner.

    Thank you

    Regards

    Sofia

  2. Tax Advisor says:

    Hi Sofia,
    That is not true. You’ll need to lodge your taxes if you received income form Australian sources, and if you do or do not receive a tax refund, this has nothing to do with working in Australia.

  3. lyndsey says:

    Hi there my dad worked in australia in 2003 to 2005 is he still able to claim tax hea even thou hes moved out of the
    country. If so how would he go about getting it. Thanks

  4. Nadia says:

    Hi
    My husband has started to work one week before the financial year ends. Is that mean he needs to tax return for that one week for that financial year even the income was very low?
    Thanks
    Nadia

  5. Tax Advisor says:

    Hi Lyndsey,
    Unfortunately, he won’t be able to claim the refund because of the statute of limitations.

  6. Tax Advisor says:

    Hi Nadia,
    According to the ATO, you must show all employment income, payments and benefits on your tax return, so yes he will have to report this income. I would suggest checking out the ATO’s income section of their website. Here is the link; https://www.ato.gov.au/Individuals/Income-and-deductions/Income-you-must-declare/

  7. mike says:

    Hi, when does this tax year finish if my pay week finishes on a Monday, Is it the 30th this year meaning there is 53 weeks in the year?

  8. Tax Advisor says:

    Hi Mike,

    The Australian financial year runs from 1 July to 30 June and the tax season to report your income earned during this period runs from 1 July to 31 October. Starting on 15 June, you will be able to report your income earned with E-Lodge.

  9. Ernie says:

    Dear Tax Advisor

    I was fired last week and obtained another employment just today where I am required to file for a new TFN form. What bothers me is question number 8 in the form which says: Do you want to claim the tax-free threshold from this payer? Do I need to answer yes? I have only one job which was finished last week and now I have also one job to start soon. I want to claim the tax threshold for my expected $400 a week income with this new employer but just want to make sure I did it right.Thanks for your advice.

    Respectfully,

    Ernie

  10. sam says:

    hi there im an australian resident, i worked from mid july 2013 till october 2013, but i left my employment on bad terms, will i still receive a payment summary from them or will i have to call them? thanks :(

  11. Tax Advisor says:

    Hi Ernie,

    For your specific situation, I suggest referring to the ATO website which goes more into depth about claiming the tax-free threshold.

  12. Tax Advisor says:

    Hi Sam,

    According to the ATO website, “you must make all reasonable attempts to contact your employer to get a copy of your payment summary.” Once all attempts are made and none are anserwed, you will need to download a Statutory Declaration from the ATO website to fill out in order to obtain your payment summary.

  13. Scherwin says:

    I get paid fornightly in arrears. My last fortnightly pay was for the period 16/6-29/6/14. However I get paid for those dates on the next Wednesday i.e 3/7/14. The payroll is stating that because it gets paid in the new tax year that it is subject to those changes after 1/7/14.

    Is this the correct way to calaculate how the payments of tax/medicare levy etc should be made?

  14. Tax Advisor says:

    Hi Scherwin,

    Technically, the financial tax year begins on 1 July and ends on 30 June. However, I suggest using the ATO’s Medicare levy calculator as a reference. It only takes a few minutes to answer several specific questions that will provide you with the best estimate.

  15. Mal says:

    We are an employer and pay fortnightly, with the final fortnight falling on Sunday 29 June, but was paid today 3 July. Will this final pay be counted towards the 2013-2014 financial year or the new 2014-2015 financial year? We need to issue our employees with payment summaries and we need to know how it will be counted.

    Many thanks,

  16. Gina says:

    Like Scherwin above, I have a query regarding paydates versus pay period ending. What is the answer please? If my pay period ended 27/6/2014 but I was paid into bank account on 2/7/14 does ATO treat this as a 2013/2014 financial year or first pay in 2014/2015? It has affected everyone by approximately negative $22. Is this a new tax of some sort and if so what is it please? Sorry two questions I know.

  17. Tax Advisor says:

    Hello Mal,

    I suggest referring to the ATO Fornightly Tax Table for your situation.

  18. Tax Advisor says:

    Hi Gina,

    The amount you physically received on 2/7/14 applies to the new financial tax year. Payroll works off the date the employee is paid and not the period to which the pay relates.

  19. Susan says:

    I left my employment on 16 th of July under very bad circumstances after I gave my notice of three weeks they then gave me 2 days to move out of the accommodation which was part of my salary package. I moved out at my cost and demanded I get paid all of my holiday pay before I left. They weren’t willing to pay me all that was owed and I didn’t have a choice but to take what they were going to pay so I had something for my family to live on. I have just reicieve my tax declaration from Him and he has dated it for the 1st of August to the 31st of August and refuses to change the date which will then Cross over with when I started at my new job on the 19 August. I didn’t work for him at all in August and he won’t change it what can I do?

  20. Tax Advisor says:

    Hi Susan,

    I strongly suggest contacting the ATO under your circumstances since your employer has now made this a legal issue by withholding pay from you.

  21. Fey says:

    Hello and thanks for your advice.

    I received my permanent residency letter September 2013 and flew to Australia in October 2013 for a week to accept the PR. I was working in Europe till 1 June 2014 and am now residing permanently in Australia from 1 June 2014.
    From January 2014 I’m working as a part time consultant for a Malaysia based company online in a monthly basis contract and receiving my salary in my Australian bank account. I don’t have any other source of income and am not employed under any Australian based company.
    1- Do I still need to lodge Tax return for 1 July 2013- June 2014 period?
    2- Is my income taxable even if it’s not from an Australian based company?

    Many thanks for your time!

  22. Tax Advisor says:

    Hi Fey,

    You may want to take a look at the ATO website “Do I Need to Lodge a Tax Return” calculator.

  23. Ankita says:

    Do I need to create new account/userid to lodge the return for previous years.

  24. Tax Advisor says:

    Hi Ankita,

    You don’t need to create an entire new account for each year. On the sign in page, just be sure to select the ‘Tax Year’ from the drop down menu.

  25. jamie prictor says:

    Can I apply for my 2014-2015 tax? as I have left Australia now and will not be returning?

  26. Tax Advisor says:

    Hi Jamie,

    In order to lodge your 2015 tax return early, you will need to contact the ATO on 13 28 61 and arrange to lodge a paper tax return.

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