PAYG and lodging your tax return

Your employer withholds tax from each pay packet and forwards it to the ATO ("Pay As You Go" — PAYG). At the end of the financial year, you lodge a tax return to settle up. Most people get a refund because PAYG often over-withholds slightly.

To lodge your return

• Log into myGov, link the ATO, and use myTax — most people are pre-filled with payroll, bank interest and dividends.
• A TPB-registered tax agent can lodge for you. Verify fees with the agent before engaging.
• The myTax form takes 30–60 minutes for most people.

What you can claim as deductions (typical)

• Work-related expenses — uniforms (specific to the job, not just regular clothes), tools, technical certifications.
• Working from home — a fixed-rate method gives a per-hour deduction for work-from-home time. Verify current rate at https://www.ato.gov.au/individuals-and-families/your-tax-return/income-deductions-offsets-and-records/deductions-you-can-claim/working-from-home-expenses
• Self-education — only if directly related to your current employment.
• Donations over $2 to deductible gift recipient (DGR) charities.

Common gotchas

• Saying "I'm a resident" on a tax return when you're not (or vice versa) — the ATO checks. The Working Holiday Maker tax rules are particularly fraught.
• Claiming deductions without receipts. The ATO requires written evidence for total work-related claims above $300.
• Forgetting to include foreign-sourced income. If you're a tax resident, the ATO wants to see your worldwide income. There's usually a foreign income tax offset that prevents you being taxed twice.