5 top tips for School leavers when it comes to tax (and how to tackle your first tax return)

School Leavers, did you finish school in 2018 or 2019? Have you worked in any capacity since? While it’s not a big focus in school, it is so important to understand your tax obligations when it comes to your income.

What is tax?  Tax is an amount that is deducted from your wage using a set of complex tax rules services and is used to help run the country. Your tax money pays for services like health, education, transport, defence, social security and welfare.

Do I have to pay tax? Yes. There is nothing surer in this world than Birth, Death and Taxes. The amount you have to pay, and what you have to do to report it is different depending on the rules that apply to you so it is important to understand your obligations.

What’s Net income? What happens to the rest of what I make? Your net income is the money that is left after your employer deducts tax and pays your super contribution. Your net income is your take home pay. You must budget and make savings provisions from this net amount.

What’s Super and do I have to pay it? Super is like a big savings account for your retirement, that starts when you commence making and income and concludes when you retire. Usually your employer will pay 9% to super on your behalf. If your employer has suggested another arrangement contact us to check in with the regulations around compulsory super contributions so that you don’t pay twice.

When is tax time? The tax year concludes on the 30th of June each year, you must keep your relevant receipts and records for each tax year from the 1st of July to the following 30th of June.

How do I do my tax? Call JSM and book in! Here at JSM Accounting Group we work hard to support new entrants with their tax requirements as they transition into the workforce. Our easy no fuss accounting can help educate you and make sure you are getting the most back from your income tax return quickly and correctly and leave you feeling comfortable that you have met your retirements.

Connect with us today and let’s get the ball rolling! Visit our contact page here, use our booking system here or contact us on any of the details below:

1800 CALL JSM

Town Square, 19b/357-381 redbank Plains Qld 4301

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References:
Income Tax Rules