FAQs

Individual Tax FAQs

What is a registered tax agent?

A registered tax agent is a professional officially approved by the Tax Practitioners Board (TPB) to prepare and lodge tax returns, and to provide tax (financial) advice in accordance with Australian tax law.

Will my financial information remain safe with TidyTax?

Absolutely. TidyTax adheres to a strict non-disclosure policy and secures all data files on robust Microsoft Office 365 servers. Furthermore, all our staff sign comprehensive confidentiality agreements to ensure the protection of your data and financial information.

Do I get more time to lodge if I use a tax agent?

Yes – if you’re registered with a tax agent before 31 October, you may get an extended deadline (often until May the following year), giving you more time to prepare.

Will I Be Penalised for Lodging My Return Late?

Your income tax return should be lodged by 31 October each financial year. Fines or penalty charges may apply if you are late. A benefit of being a TidyTax client means that we may be able to help you minimise charges with our lodgement extension.

Can a tax agent help me get a bigger refund?

Yes – experienced agents often know industry-specific deductions that many individuals overlook. They can ensure you’re claiming everything legally possible.

What’s the difference between a tax agent and an accountant?

All tax agents must be registered with the TPB and are authorised to lodge tax returns and give tax advice. Not all accountants are tax agents.

Are tax agent fees tax-deductible in Australia?

Yes. If you pay a registered tax agent to prepare or lodge your tax return, the fee is 100% tax-deductible in the following financial year.

Is it illegal for someone to lodge tax returns for others if they’re not registered?

Yes. Under Australian law, only registered tax agents can legally:

Prepare and lodge tax returns for a fee
Provide tax advice for payment
Doing so without registration is a criminal offence and may result in:
Fines
Prosecution
ATO investigations

When can I claim the deduction for the tax agent’s fee?

You claim the fee paid in one year as a deduction in the next year’s tax return. For example, if you paid a tax agent in August 2024 for your 2023–24 return, you claim the deduction in your 2024–25 return.

What records do I need to keep?

You are responsible for retaining all relevant documentation, such as bank statements, receipts, and myDeductions logs, for a minimum of 5 years. The Australian Taxation Office (ATO) requires substantiation for all claimed deductions.

Do I need to send my Income Statement or PAYG Summary to TidyTax?

No! As your tax agent, we can access your ATO file on your behalf and get a copy of your Income Statement, along with other information like Bank Interest, Private Health Insurance and Government Payments. If TidyTax is your tax agent, you should never need to go to myGov for anything tax related. It’s our job to look after your tax affairs, so you can ask us, and we’ll be happy to assist!

How Long Will My Refund Take?

Most refunds will be issued within 12 business days once lodged online with ATO by us, or up to 50 business days if you lodged a paper return. If you provided us with valid Australian bank account details in your return, your refund will be paid directly to your account.

How Much Do You Charge?

We are full-service accountancy, without the full-service cost. Our price structure is based on how complex the tax return is. Our digital service delivery model allows us to offer low competitive price. Please refer to our pricing for individual tax returns.

Can You Prepare Multiple Years Returns At The Same Time?

Yes, your TidyTax consultant can assist you in preparing and lodging all outstanding tax returns from previous years in a single appointment. While the current year’s refund will be processed within the standard timeframe, refunds for prior years may require a longer processing period.

I Have Received a Dividend Statement, Do I Need To Declare This as Income?

You will need to include dividend statements as well as any other interest earned on bank accounts, even if it’s just a few dollars, as income. The Australian Tax Office now has data-matching services with banks to cross-reference the data they receive from you, so it’s important that they match. We’ll help by prompting you to include this in your TidyTax consultation.

I Have a Working Visa. What Do I Need So I Can Work In Australia?

If you already have a working visa, you will also need to obtain a Tax File Number (TFN) to be properly recognised for tax purposes in Australia. An TidyTax Tax Accountant can help you every step of the way if you’re unsure.

I am an international student or working holidaymaker – do I need to lodge a tax return?

Yes, if you earned income in Australia. Your residency status for tax purposes affects how you’re taxed. TidyTax can help you with your tax residancy status.

I am leaving Australia permanently - do I still lodge a return?

Yes. Lodge a final tax return and update your residency status. You may also be eligible for a Departing Australia Superannuation Payment (DASP). TidyTax can help you with the final tax return and DASP.

Do I need to declare foreign income?

Yes. If you’re an Australian resident for tax purposes, you must declare worldwide income, including overseas salary, interest, dividends, and pensions. You may be able to claim a foreign income tax offset.

Do I need to declare payments from Airtasker, Uber, or side gigs?

Yes. All income, including gig work and freelance income, must be declared. This counts as business or personal services income and might require GST registration. TidyTax can help you with the right advice depending on your situation and type of services you are offering.

Can I Claim Any Deductions If I Have No Receipts?

Understanding when you need a receipt to claim a tax deduction is important to ensure you don’t pay more tax than necessary. There are deductions that you must have written evidence to claim a tax deduction based on expenses incurred. For example, if your total claim for work-related expenses is $300 or more, you must have written evidence to prove your claims. But, if you don’t have receipts, all is not lost!

As long as you have documentation that includes: the name of the supplier, amount of the expense, what the goods or services are, date the expense was incurred, the following documents are also acceptable as written evidence:

Credit card statements
BPAY reference numbers
Email receipts
PAYG payment summary
Paper or electronic copies of original documents

How Much Can I Claim on My Motor Vehicle?

To claim tax deductions for your vehicle, you’ll need to keep your receipts and a log book for each vehicle. Your TidyTax Accountant will the work out the best method to use to claim maximum deductions. They’ll also help you claim any up front costs that you might be eligible for, and work out the best method for depreciating your vehicle.

I have made donations to my charity. How do I claim these expenses?

Organisations entitled to receive tax deductible gifts are called ‘deductible gift recipients’ (DGRs). You can only claim a tax deduction for gifts or donations to organisations that have a DGR status. Tax deductions of $2 or more can be claimed, however there are rules governing approval of claim regarding certain type of gifts.

Why do I have to pay HELP (formerly HECS) in my tax return when I have already paid it during the year from my pay?

Your final HELP debt repayment amount for the financial year cannot be finalised until your income is reported on your income tax return. This is because it is calculated as a percentage of your total income for the year. The total yearly HELP debt will be compared to the amount taken from your salary when you complete your tax return. This will decide whether you need to pay more or get some back as a refund.

What’s the tax-free threshold and should I claim it?

The first $18,200 of your income is tax-free each year. You can only claim the tax-free threshold from one employer at a time — usually your main job.

What is the Medicare levy?

Most taxpayers pay a Medicare levy of 2% of their taxable income to fund Australia’s public health system. Low-income earners may pay a reduced levy or none at all.

What is the difference between a tax deduction and a tax offset?

A deduction reduces your taxable income (e.g., $500 deduction saves you $100–150 in tax depending on your tax rate).
A tax offset directly reduces your tax bill (e.g., a $500 offset saves you $500 in tax).

Will I get in trouble if I don’t declare something?

Yes – the ATO uses data-matching with banks, employers, crypto exchanges, and Centrelink. Failure to report all income or over claiming deductions can result in:

Amended assessments
Penalties and interest
Audits

Can I do my partner’s tax return too?

Each person must lodge their own return, but you need to declare your spouse’s income for family-related benefits (e.g., Medicare levy reduction, family tax benefit).

I’m self-employed/freelancer - how is that taxed?

You’re taxed on your net income (income minus allowable business expenses). You must:

Keep good records
Pay tax yourself (ATO won’t withhold)
Consider pay-as-you-go (PAYG) instalments if your income is high

What are PAYG instalments?

If you earn income outside of regular employment (e.g., from business or investments), the ATO may ask you to pay tax in advance quarterly to avoid a big bill at the end of the year.

What’s the difference between an ABN and an ACN?

An ABN (11‑digit) is issued by the Australian Business Register for businesses and sole traders, while an ACN (9‑digit) is issued by ASIC for companies.

How do I set up a business in Australia?

You’ll need an ABN and TFN, plus potentially registers for GST, PAYG withholding, and FBT. A tax agent can guide both structure and registrations. TidyTax provide services for stress-free business setup.

Can TidyTax Help Me Setup A Company and Lodge My Company Tax Returns?

Starting a business involves a number of tax obligations and registrations. TidyTax can help you sort out your Tax File Number (TFN), Australian Business Number (ABN) and Australian Company Number (ACN), register your business name and get an AUSkey. They’ll also help register your company for the GST, PAYGW, PAYGI and FBT to new a few.

What is the frequency of bookkeeping services?

We are equipped to handle all types of clients working across multiple industry segments. We can help individuals tax payers, small business, sole trader, rental property owner, professionals for tax returns as well as enterprises for handling bookkeeping and payroll.

Can I make extra contributions into my super account?

You can boost your super by adding your own contributions to your super fund. Personal super contributions are the amounts you contribute to your super fund from your after-tax income (that is, from your take-home pay). These contributions:

Are in addition to any compulsory super contributions your employer makes on your behalf.
Do not include super contributions made through a salary sacrifice arrangement.
Personal contributions are non-concessional (after-tax) contributions and will count towards your non-concessional contributions cap unless you have claimed a tax deduction for them.

Loan FAQs

What is a fixed-rate home loan?

A fixed-rate loan means your interest rate and repayments remain the same for a set period, offering stability and predictability in your budget.

What is a variable-rate home loan?

A variable-rate loan’s interest rate can go up or down with market changes, meaning your repayments can fluctuate. It offers flexibility like extra repayments without penalty.

What is LVR (Loan-to-Value Ratio)?

LVR is the percentage of the property’s value that you are borrowing. For example, a $400,000 loan on a $500,000 property is an 80% LVR.

What is LMI (Lenders Mortgage Insurance)?

LMI is an insurance policy protecting the lender if you default on your loan, typically required when your LVR is above 80% (i.e., your deposit is less than 20%).

How much deposit do I need for a home loan?

Generally, a minimum deposit of 5% to 10% of the property value is required, though 20% or more helps avoid LMI and often secures better rates.

Can I get a home loan if I'm self-employed?

Yes, but you’ll usually need to provide two years of tax returns and financial statements to prove consistent income, rather than payslips.

What is pre-approval?

Pre-approval is an indication from a lender of how much they might lend you based on an initial assessment, helping you set a property budget.

How long does a home loan application take?

From initial application to formal approval can range from 1-3 weeks, depending on the lender and the complexity of your financial situation.

What are the main costs besides the loan itself?

Besides your repayments, common costs include stamp duty, legal/conveyancing fees, valuation fees, and potentially LMI.

What is a business loan?

A business loan provides funds to start, grow, or manage a business, used for purposes like working capital, equipment, or expansion.

What types of business loans are available?

Common types include term loans, lines of credit, equipment finance, invoice finance, and commercial mortgages, each suited for different business needs.

What do lenders look for in a business loan application?

Lenders assess your business plan, financial history, credit score, revenue stability, and capacity to repay the loan.

Do I need collateral for a business loan?

Many business loans, especially larger ones, require collateral (assets) or a personal guarantee to secure the loan, though unsecured options exist for smaller amounts.

How quickly can I get a business loan approved?

Approval times vary greatly; some online lenders offer fast approvals within days, while traditional bank loans can take weeks.

What is working capital?

Working capital is the difference between your current assets and current liabilities, representing funds available for day-to-day operations. Loans can boost this.

Can I get a business loan for a new startup?

It’s challenging but possible. Lenders will scrutinize your business plan, market research, cash flow projections, and often require personal guarantees.

What documents are required for a business loan?

Typically, you’ll need financial statements (P&L, balance sheet), tax returns, bank statements, a business plan, and identification documents.

How are business loan interest rates determined?

Rates depend on the loan type, your business’s creditworthiness, the loan term, and whether the loan is secured or unsecured.

What's the difference between a business loan and a line of credit?

A business loan is a lump sum repaid over time, while a line of credit allows you to draw and repay funds up to a limit as needed, like a flexible overdraft.

What is debt consolidation?

Debt consolidation combines multiple existing debts (like credit cards, personal loans) into a single, often lower-interest, loan.

What are the benefits of debt consolidation?

Benefits include simplifying repayments (one monthly payment), potentially lowering your overall interest rate, and reducing the total amount paid over time.

How does debt consolidation work?

You take out a new loan for the total amount of your existing debts, use it to pay them off, and then make repayments only on the new, consolidated loan.

Will debt consolidation affect my credit score?

Initially, applying for a new loan can cause a slight dip. However, if managed well, making consistent repayments on the consolidated loan can improve your score long-term.

What types of debt can be consolidated?

Typically, unsecured debts like credit card balances, personal loans, medical bills, and store cards are suitable for consolidation.

Is debt consolidation right for everyone?

No. It’s best for those with a clear repayment plan and disciplined spending habits. It’s not a solution for underlying financial mismanagement.

Can I consolidate my debts if I have bad credit?

It’s harder, but some lenders specialise in bad credit debt consolidation loans. You might face higher interest rates or require collateral.

What are the potential risks of debt consolidation?

Risks include extending the repayment period (paying more interest overall), temptation to accrue new debt, and potentially higher interest rates if your credit is poor.

Should I use a personal loan or a home equity loan for consolidation?

A personal loan is unsecured but might have higher rates. A home equity loan is secured by your home (riskier if you default) but usually offers lower rates.

What fees are associated with debt consolidation?

Be aware of potential loan origination or balance transfer fees. TidyTax provides transparent information on all fees, ensuring you understand the true cost of consolidation.

What is a construction loan?

A construction loan is a short-term loan used to finance building a new home or significant renovation, paid out in stages. TidyTax helps you understand the unique structure of construction loans and their phased payouts.

How does a construction loan differ from a regular home loan?

Construction loans are released incrementally as milestones are met, unlike a lump sum home loan. TidyTax guides you through the drawdown schedule and repayment adjustments for construction loans.

What are "progress payments" or "drawdowns"?

These are scheduled payments released from the loan at various stages of construction. TidyTax helps you prepare for and manage the progress payment schedule with your builder and lender.

How is interest calculated on a construction loan?