Tax return 2021 Australia : Everything you need to know

July 15, 2021

Australia, it’s time to lodge a tax return for year 2021. Whether you do it with a registered tax agent, tax accounting firm or do it online, the Australian Tax Office is be expecting you to submit your claim before the closing date so that your affairs for this COVID-crazy financial year are in bid.

Tax brackets 2021

Individual income tax rates indicate the amount of tax due in every dollar for each income tax bracket, varying on your events.

There are various tax brackets for residents, foreign citizens, children and working holiday makers.

The below information has been provided by the ATO. 

Resident tax rates 2020–21

The below rates apply to persons who are Australian residents for tax purposes. They do not consist of the Medicare tax of 2%.

Taxable income: 0 – $18,200

Tax on this income: Nil


Taxable income: $18,201 – $45,000

Tax on this income: 19 cents for each $1 over $18,200


Taxable income: $45,001 – $120,000

Tax on this income: $5,092 plus 32.5 cents for each $1 over $45,000

Taxable income: $120,001 – $180,000

Tax on this income: $29,467 plus 37 cents for each $1 over $120,000


Taxable income: $180,001 and over

Tax on this income: $51,667 plus 45 cents for each $1 over $180,00

Working holiday maker tax rates 2020–21

These rates apply to working holiday cause income in any case of residency for tax purposes.

You are a working holiday cause if you have a visa subclass:

417 (Working Holiday)

462 (Work and Holiday).

Taxable income:$0 – $37,000

Tax on this income: 15c for each $1


Taxable income: $37,001 – $90,000

Tax on this pay: $5,550 plus 32.5c for each $1 over $37,000


Taxable income:$90,001 – $180,000

Tax on this income: $22,775 plus 37c for each $1 over $90,000


Taxable income: $180,001 and over

Tax on this income: $53,325 plus 45% for each $1 over $180,000 

Australian Tax return deadline

Generally, the cutoff date for lodging your return is 31 October.

As 31 October drops on a Sunday this year, you have until 1 November to lodge.

If you decide to use the services of a registered tax agent, they will normally have special lodgment plans and can lodge returns for clients later than 31 October. If you are using a registered tax agent, you need to engage them before 31 October.

If you’re having troubles meeting your tax debts or are unable to lodge by 31 October, the ATO advises that you contact it as soon as possible.

If you lodge your own tax return and it results in a tax bill, payment is due by 21 November, regardless of whether you lodged before or after the deadline. 

What happens if you don’t do your tax return?

Tax returns, interest statements, other documents and evidence must be lodged or returned by specific dates. 

Australian taxpayers who fail to submit their tax return can face a total of acts from the ATO. 

Some of these actions include: 

·       failure to lodge on time penalty

·       referral to outer collection agencies

·       issuing a final notice

·       issuing a defaulting assessment which entices a further penalty.

·       preserving a refund until lodgment is made.

·       impeaching you 

How will COVID-19 complicate tax returns?

Australians have long been cautious of complications that the coronavirus pandemic persists to create but will now need to be more delicately familiar to its effects while lodging their tax returns in 2021.

The Australian Tax Office says there are a number of adjustments it has made in regard to preparing income tax returns in a COVID-19 environment.

The ATO has made changes to tax returns for Australians who:

·       were on JobSeeker payments.

·       where/are working from home.

·       accessed their retirement early.

·       received stand down payments.

·       changed jobs.

Having any doubt regarding tax return or need help with lodge tax return, feel free to ask our tax agent in Melbourne.


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