For those living in Perth, Western Australia, understanding the rules and regulations around income tax can be a complicated yet necessary task. To help make the process easier, this blog post provides a comprehensive guide to income tax in Perth.
When and How to File Your Tax Return
The Australian Taxation Office (ATO) requires all Australian residents to lodge an income tax return each financial year. The tax return period generally starts on 1 July and ends on 31 October each year. However, if you have a tax agent managing your taxes, you may extend the due date to 15 May of the following year.
When lodging your tax return, you’ll need to include all sources of income, such as wages, investments, and rental income. Additionally, you’ll need to include any deductions you’re eligible for, such as work-related expenses and donations to charity.
Tax Rates in Perth
The tax rates in Perth, as for the rest of Australia, are determined by your taxable income. For recent financial years, the tax rates for Australian residents are as follows.
For the financial years 2022–23 and 2023–24
- $0 – $18,200: $0
- $18,201 – $45,000: 19c for each $1 over $18,200
- $45,001 – $120,000: $5,092 plus 32.5c for each $1 over $45,000
- $120,001 – $180,000: $29,467 plus 37c for each $1 over $120,000
- $180,001+: $51,667 plus 45c for each $1 over $180,000
For the financial year 2024-25
- $0 – $18,200: $0
- $18,201 – $45,000: 16c for each $1 over $18,200
- $45,001 – $135,000: $4,288 plus 30c for each $1 over $45,000
- $135,001 – $190,000: $31,288 plus 37c for each $1 over $135,000
- $190,001+: $51,638 plus 45c for each $1 over $190,000
These rates do not include the Medicare levy of 2%. It’s important to check the ATO website for the most up-to-date information regarding tax rates.
Tax Deductions
If you’re earning an income in Perth, you may be eligible for a range of tax deductions designed to reduce your taxable income. Some common deductions include the following.
Work-related Expenses
This includes the cost of travel for work purposes, protective clothing, tools, or other items needed for your job.
Donations to Charity
Donations made to registered charities can be deducted.
Other Deductions
Depending on the nature of expenses and the tax year, you may be able to deduct medical expenses and interest paid on your mortgage.
Claiming Tax Back
If you’ve overpaid your income tax, you may be eligible for a tax refund. To claim a refund, lodge a tax return and provide evidence of your tax payments. The ATO will review your return and determine whether you have overpaid. If so, you’ll receive a refund in your nominated bank account. The ATO also offers a range of support services to help with your taxes. If you’re unsure of anything, it’s always best to get in touch with the ATO for professional advice.
Read more: Maximise Your Tax Return With These 3 Easy Tips
Perth Mobile Tax offers a complete tax service. If you would like further information about income tax in Perth, contact us today. Our team of experienced tax professionals can answer any questions you may have and provide the guidance and advice you need to get your taxes right.
Related posts:
