Tax Return:: 2024 Early Tax Return and Superannuation Refund
Hello, this is your tax accountant, P&C Tax Professionals.
First of all, as we head into the New Year, we wish everyone including all of our valued customers a prosperous New Year. As today marks our first blog post for the year, we will be briefly discussing about the early tax return and superannuation refund system in Australia.
<2024FY Early Tax Returns>
Generally, in order to receive a tax refund in Australia, one must apply for their tax return between July and October after the accounting period has ended. For instance, for the 2024 financial year, your tax return should be lodged between 1 July 2024 and 31 October 2024. However, if you are leaving Australia early (i.e., before 1 July), you may be able to apply for an early tax return which means you do not have to wait until the start of the official tax season to lodge your tax return.
Early tax returns are available if you satisfy the following two conditions:
1. You have completed your work and are no longer working in Australia, AND
2. You are due to leave Australia soon (you can apply for your early tax return 2 months before your departure date)
Please note that early tax returns take considerably longer to process compared to the standard tax return. It can take up to 50 business days for the ATO to process your early tax return.
<2024FY Superannuation Refund – Departing Australia Superannuation Payment>
If your visa is about to expire or you do not have any plans to re-enter Australia for an extended period of time (>1-2 months), you can also apply for the Departing Australia Superannuation Payment (DASP) in addition to applying for your early tax return.
The following conditions must be met in order for you to apply for the DASP:
1. You have left Australia
2. Your visa has expired or has been cancelled.
<Deactivating Your TFN Before You Leave>
For those of you departing Australia early and who are not planning on returning, it’s important to also consider deactivating your Tax File Number (TFN). If you are planning on returning to Australia and have already deactivated your TFN, you can simply reactivate it when you return to Australia. However, if you are leaving Australia for an extended period of time, it is crucial for you to deactivate your TFN when you apply for your early tax return.
There are 2 main reasons you should deactivate your TFN before you leave Australia for the long term.
1. Annual income tax reporting is still mandatory if your TFN is active
If you leave Australia without deactivating your TFN, you would still need to report your income (even if it is zero) to the ATO each year. Failure to meet your annual reporting requirement could lead to potential fines later on. If you are fined for not reporting your income in Australia and the fines remain unpaid, this could result in a refusal of entry when you return to Australia.
2. It can help prevent identity theft
If someone leaves Australia without deactivating their TFN, there’s a risk of someone else misusing the TFN. There have been cases where TFNs have been misused, resulting in substantial tax debts for the original holder. Occasionally, the Australian Taxation Office (ATO) locks dormant TFNs due to identity theft concerns. Therefore, it is highly recommended to deactivate your TFN to prevent potential identity theft issues if you are leaving Australia for a prolonged period.
At P&C Tax Professionals, if you simply mention on your tax return application form that you this will be your final tax return, we will automatically help you deactivate your TFN at no additional cost.
If you need assistance with lodging your early tax return and/or your DASP, you can consult with us today through our official Facebook Page (P&C Tax Professionals – Australia) or via our email address (pnctax@naver.com).
Thank you and bye for now!