5 Simple Steps to Tackle Your 2025 Tax Return

Key Take-Aways:

• Prepare Your Tax Records Early: Have necessary documents ready such as income statements, Tax File Number (TFN), and bank account details, to help avoid mistakes and guarantee you don’t miss any deductions.
• Report All Income Sources: Accurately report all sources of income, including online sales, investments, part-time jobs, and self-employment, to avoid issues with the ATO.
• File Electronically for a Faster Refund: Lodging your return online using ATO-approved tax software speeds up processing and reduces errors, assuring quicker refunds
•  Access Free Filing Tools: If eligible, take advantage of free tax support services offered by the ATO, which assist individuals with straightforward tax affairs.

5 Simple Steps to Tackle Your 2025 Tax Return

Nothing like our favourite person the Tax Man reminding us that the only 2 certainties in life are death and taxes. While we can't help with the former, we can certainly make the latter less daunting. As tax season is rapidly approaching, these five essential steps will ensure you meet your obligations efficiently while maximising your entitlements.

Step 1: Prepare Your Tax Records Early

Tax compliance begins with preparation. Before lodging your return, ensure you have all necessary records organized and accessible. This includes:

• Income documents (PAYG summaries, bank interest statements, investment earnings)
• Expense records (work-related deductions, charitable donations, rental property costs)
• Personal identification (Tax File Number, Medicare details)
• Prior year notices (any ATO correspondence or carry-forward balances)

Having all documents organised upfront not only saves valuable time but helps guarantee you claim every deduction and credit you're entitled to.

Step 2: Report All Income Sources:

With the rising cost of living affecting so many of us, transparency about every income source has never been so important, whether that’s side gigs or trying your luck with crypto. After all, in today's economy, who hasn't picked up some extra work to make ends meet? (I know I have)

• Employment income (PAYG summaries, bonuses, allowances)
• Investment earnings (dividends, interest, capital gains)
• Side hustles (freelance work, gig economy income, online sales)
• Government payments (pensions, allowances, COVID-19 support)

Providing accurate income reporting helps prevent potential penalties that unaware taxpayers might otherwise incur.

Step 3: File Electronically for a Faster Refund/Payable

We live in the digital age so lets embrace it by filing electronically, as this fastest way to receive your refund/payable. This can be done either through the ATO's myTax system or via a registered tax agent. By utilising tax software, it helps to keep calculations accurate and reduces the chance of mistakes compared to submitting a paper return which may delay your refund and or contain avoidable errors

Step 4: Access Free Filing Tools

The ATO provides several free assistance options to help taxpayers meet their obligations:

For Individuals:

• myTax - Free online lodgement for straightforward returns

• Tax Help Program - Assistance for those earning under $60,000

• Indigenous Helpline - Culturally appropriate support for First Nations taxpayers

For Specific Groups:

• Seniors - Dedicated phone support and simplified forms

• Non-English Speakers - Interpreter services in 42 languages

• Small Businesses - Free webinars and digital tools         

Step 5: Stay Informed and Use ATO Online Services

The ATO provides a range of online tools to help you manage your tax affairs easily:

•          myGov and ATO Online Services: Securely access tax records, lodge returns, and view payment history.
•          ATO App: Track refunds, manage payments, and get updates anytime, anywhere.
•          ATO Virtual Assistant: Get quick answers to common tax questions.
•          Online Tools at ato.gov.au: Available 24/7, these resources help you stay up to date with tax obligations.

Additional Tips for 2025 Tax Filing:

Keep Up to Date with Tax Changes: Recent updates include changes to tax offsets, adjustments to thresholds, and updates to deductions for work-related expenses and superannuation contributions.

Understand New Reporting Requirements: Digital platforms and payment services now report income for sellers earning over a certain threshold. Make sure any income from online sales, investments, or freelance activity is accurately reported in your tax return.

Getting a head start, using ATO online tools, and keeping your records organised can help reduce stress and ensure your return is accurate and submitted on time.

For detailed guidance, the ATO encourages taxpayers to visit ato.gov.au and explore resources such as myTax, the ATO app, and the Income Tax Return Guide.

Tax time doesn’t have to be stressful — with the right tools and preparation, you can make the process smoother and more efficient!

If you’re a business owner looking for support with tax planning, book a session with Business Growth HQ to find out how we can help you achieve better financial outcomes.