DIY Taxes: A 5-Step Guide to Lodging Your Own Tax Return

For many Australians, the idea of lodging their own tax return is terrifying. In fact, over 70% of us are intimidated by the process. But here's the secret: for most people with straightforward finances, lodging your own tax return is simpler than you think.

The key isn't how smart you are; it's about the complexity of your financial life.

Modern tax systems like myTax are specifically designed for individuals. If you're earning a regular salary with some basic deductions, you could be paying hundreds of dollars ($400-$800, in many cases) for a service you could confidently handle yourself.

But how do you know if you're a good candidate for DIY?

Who Should (and Shouldn't) Do Their Own Taxes

This is the most important question to answer before you start.

You are likely a good candidate for DIY if:

• You are a standard employee (PAYG).

• Your income consists of a salary, bank interest, and perhaps some dividends.

• You have simple, work-related deductions (like a uniform, car, or home office claim).

  
  

You should seek professional help from an accountant if:

• You run a business (even as a sole trader).

• You have one or more investment properties.

• You have complex investments, like cryptocurrency or managed funds.

• You have significant capital gains or losses (e.g., from selling shares).

• You are in a high-income bracket and want to discuss tax-planning strategies.

If you fit the "simple" category, here is your 5-step guide to lodging your own return.

A 5-Step Guide to Lodging with myTax

Managing your cash flow comes down to four key areas of discipline.

Step 1: Gather Your Documents (and Wait for "Tax Ready")

The first step is to get your information together. Thanks to Single Touch Payroll (STP), your employer reports your income directly to the ATO. You no longer need to wait for a "PAYG Payment Summary."

Instead, you need to wait for your income statement in myGov to be marked as "Tax Ready." This means your employer has finalised their data, and it's ready for you to use. This is the most critical first step—lodging before your data is "Tax Ready" is the number one cause of errors and amendments.

Step 2: Organise Your Deductions

This is where you can make a real difference to your refund. The golden rule is: you can claim anything you spent money on to earn your income, as long as you have a record to prove it.

Common deductions include:

• Work-related car expenses: If you use your car for work (not just commuting to and from your office).

• Uniforms and laundry: If you wear a specific, compulsory, or protective uniform.

• Home office expenses: If you work from home (even partially), you can claim a portion of expenses like electricity, internet, and stationery. The ATO has specific methods for this, so ensure you follow their record-keeping rules.

• Self-education: If you undertook a course or training directly related to your current job.

• Tools, equipment, and subscriptions: This includes union fees, professional memberships, and any tools you needed to buy for your job.

  
  

The ATO's data-matching is incredibly sophisticated now. It tracks everything from crypto trades to side-hustle income, so be honest. But it also protects honest taxpayers by making it easy to claim what you're owed. The ATO app even has a myDeductions tool to photograph and log receipts during the year.

Step 3: Access myTax via your MyGov Account

This is where the process begins.

1. Log in to your MyGov account.

2. Link your account to the Australian Taxation Office (ATO).

3. Navigate to and select myTax for the relevant financial year.

The myTax system is where the magic happens. Because of the ATO's data matching, much of your information will be pre-filled. This includes your salary, bank interest, and dividend information, which drastically reduces errors and speeds up the process.

Step 4: Review Pre-fill and Add Your Deductions

This is the most important step. Do not assume the pre-fill is perfect.

1. Check the Pre-filled Data: Go through every pre-filled item and make sure it's correct.

2. Add Missing Income: Manually add any income that isn't there, such as freelance work or "side hustle" income.

3. Enter Your Deductions: This is where you manually add all the deductions you organised in Step 2.

   
   

This is also where generic advice ends and specific, tailored knowledge becomes valuable. The myTax system doesn't know the unique deductions available for your specific job.

To help, we've built an ever-growing library of free tax guides for specific occupations on our website. Check them out for tailored insights:

• Fire Fighters

• Medical Professionals

• Nurses and Midwives

• Paramedics

• Police Officers & Detectives

• Teachers

  
  

Step 5: Double-Check Everything and Lodge

Before you hit that final button, take a breath. Go through every section one last time.

• Is all your income declared?

• Are all your deductions legitimate and substantiated?

• Is your bank account for the refund correct?

  
  

Once you're confident, hit lodge. The ATO has become incredibly efficient; most online returns are processed and refunds are issued within 14 days.

---

The Final Verdict: Is DIY Tax Worth It?

For a simple return, lodging yourself can save you $400 - $800 in accounting fees. But it's important to frame this as an investment, not a cost.

Here's the professional's perspective:

1. Our Fee is Tax-Deductible: The fee you pay a registered tax agent (like Aevum Accounting) is claimable as a deduction on next year's tax return.

2. We Add Value: A good accountant will often find deductions or strategies that add more value than their fee, especially in the first year. We can identify missed opportunities and set you up for success.

3. You Become an Informed Client: Even if you try DIY for a year, you'll be more informed about your own finances. This makes you a better client, able to ask the right questions and understand the value we provide.

   
   

Your Next Step

Knowledge is power. The more you understand your tax situation, the better your financial decisions will be.

If you feel confident and your tax is simple: We encourage you to try it! Use this guide and be sure to read our free occupation tax guides for specific tips.

If your situation is complex, or you just want a professional to review it: An expert eye can provide peace of mind and ensure you're in the best possible tax position. 

https://www.aevumaccounting.com.au/bookings 

Disclaimer: The information and strategies shared on this podcast are for general informational purposes only and do not constitute specific tax or financial advice. Everyone's situation is unique, and tax laws are complex and constantly evolving. For personalized advice tailored to your specific individual or business needs, we always recommend consulting with a qualified profession.

Share this post: