Everything you need to know about doing your taxes this year
Jul 29, 2022
Saying “taxes are confusing” is definitely an understatement, even the word ‘taxes’ just sounds daunting! But every year it comes around and it’s something we need to do. So to make life easier, we’ve compiled everything you need to know about doing your tax returns to help you out!
Do I need to do a tax return?
Your tax return covers the income year from 1 July to 30 June. If you need to complete a tax return you must lodge it yourself or with a tax agent, by the 31st October.
When you lodge a tax return you include how much money you earn (income) and any expenses you can claim as a deduction. Have a quick look to see whether you need to lodge a tax return using the ATO’s online tool.
How do I lodge a tax return?
There’s 3 main ways to lodge a tax return:
- Online using myTax
- Through a registered tax agent
- Paper tax return
Lodging your tax return online with myTax
Lodging online with myTax is the quick, easy, safe and secure way for you to prepare and lodge your own tax return. See here for information on:
- Benefits of lodging with myTax
- What you can do with myTax
- Access to myTax
- How-to videos (trust me - they help!)
Lodge with a registered tax agent
You can use a registered tax agent to prepare and lodge your tax return for you. Registered tax agents charge a fee to prepare and lodge your tax return for you, but it’s not very expensive and can be worth it to get rid of the stress!
See here for information on:
- Choosing a tax agent
- Due dates for lodging tax returns
- Lodging prior year tax returns
Lodge a paper tax return
You can use the paper tax return to lodge your paper tax return by mail. Most refunds are issued within 50 business days of lodgment. If you’re a bit old school and prefer doing things by hand, this might be the ideal method for you, see here for info on how to lodge a paper tax return.
*Top tip: You have till the end of October to lodge your return, so if you want to save some (beer) money and do it yourself through myTax, don’t worry you have time!
Now for the important part - the things you can claim on your tax return as a hospo worker!
To claim a deduction from work-related expenses:
- You must have spent the money yourself and weren't reimbursed
- It must be directly related to earning your income
- You must have a record to prove it*
*To help you out next year at tax time, you can use the ATO app’s myDeductions tool to keep track of your expenses and receipts throughout the year.
You can only claim the work-related part of expenses. You can't claim a deduction for any part of the expense that is related to personal use.
Clothing and grooming expenses
- You can claim a deduction for the cost of buying, hiring, mending or cleaning certain uniforms that are unique and distinctive to your job - e.g. chef's checked pants and chef's hat, or protective clothing like aprons that your employer requires you to wear.
- However: You can’t claim a deduction for the cost of buying or cleaning plain clothing worn at work, even if your employer tells you to wear it, and even if you only wear it for work (eg black pants and a white shirt).
- And you can’t claim a deduction for hairdressing, cosmetics, hair and skin care products, even if your employer expects you to be well groomed. All grooming products are private expenses - plus you really should be brushing your hair guys!
Car expenses
You can claim a deduction when you:
- Drive between separate jobs on the same day – eg travelling from your job as a waiter to a second job as a cleaner.
- Drive to and from an alternate workplace for the same employer on the same day – eg. travelling from the restaurant you work at to a catering function.
Tools and equipment expenses
You can claim a deduction for the cost of the purchase of tools and equipment you are required to use for work, eg chef knives.
But you can’t claim a deduction relating to any private use of the equipment or if the tools and equipment are supplied by your employer or another person.
If a tool or item of work equipment used for work:
- Cost more than $300 – you claim a deduction for the cost over a number of years (depreciation)
- Cost $300 or less – you can claim an immediate deduction for the whole cost.
You also can claim a deduction for the cost of repairing tools and equipment for work. If the tools or equipment were also used for private purposes, you cannot claim a deduction for that part of the repair cost.
Self-education expenses
You can claim a deduction for self-education expenses if your course relates directly to your current job, e.g. barista course if you are working in a coffee shop.
You can’t claim a deduction if your study is only related in a general way or is designed to help get you a new job, e.g. you can’t claim the cost of study to enable you to move from being a food delivery driver to being a chef.
Other common deductible work-related expenses
Other expenses you can claim a deduction for include:
- The work-related portion of phone expenses if you have to make phone calls or send texts for work
- Union and professional association fees
- Technical or professional publications
- Renewing your special employee or gaming licence. You cannot claim a deduction for the cost of getting your initial licence.
For more information, got to ato.gov.au/occupations
Other tips for doing your taxes:
- Working two jobs? See here for info on how much tax you should be paying
- The ATO has some free spotify podcasts for help and support with this years taxes, see here for details
- Doing your first tax return? Here’s everything you need to know
Want to work at some of the best hospo venues? Check out available jobs here & don't forget to sign up for job alerts, to know first when they need some extra Rockstar Staff! Sign up for job alerts here.