tyle="margin-left:17.85pt">·         The Australian taxation system works on a self-assessment model. This means that each person must assess their own liability. In order to do so you must understand:

o   the basics of how tax works;

o   whether you are liable to pay tax; and

o   how much tax you are liable to pay.

·         Australian residents must pay tax at the end of each financial year if they have earned more than the tax-free threshold. The financial year is different to a calendar year. The financial year starts on 1 July of each year and ends on 30 June. Some taxpayers may be allowed a substituted tax accounting period instead of 30 June.

·         Australian tax law specifies that the income of Australian residents is assessable regardless of whether it was earned in or outside of Australia. All sources of income are taxable.

• Non-residents are required to lodge an income tax return if they earn any income from sources in Australia.
• Even if you have earned less than the tax-free threshold you may still be required to lodge a tax return although you may not be required to pay tax. Under these circumstances you may need to lodge a tax return to obtain a refund of tax that you paid during the year which you were not liable for.
• For a comprehensive and updated guide of whether you need to lodge an annual tax return you can visit the website of the Australian Tax Office at https://www.ato.gov.au/Individuals/Income-and-deductions/.

·         Once you have assessed your own income and tax liability the Australian Taxation Office (ATO) generally:

o   accepts the claims made in your tax return;

o   calculates or assesses your tax liability based on the information you have provided; and

o   issues a notice of assessment.

·         The ATO must review tax returns within a certain timeframe. They also have the power to increase or decrease the amount of tax payable.

o   The review period will vary and depends on a number of factors but generally for individuals there is a 4 year period during which a tax return can be amended or varied by the ATO. This period begins on the day on which you receive your notice of assessment. The period is reduced to 2 years for simplified tax system taxpayers.

o   Taxpayers also have rights such as the right to be treated fairly when they have acted in good faith and the right to protection from increased tax when they have relied on advice from the ATO.