Frequently Asked Questions
This page provides answers to common questions about the Australian Taxation Office (ATO) and its services. The information is presented in a neutral, educational format to help individuals better understand Australia's tax and superannuation systems.
General ATO Questions
What is the Australian Taxation Office?
The Australian Taxation Office (ATO) is the federal government's principal revenue collection agency. It administers Australia's tax system and major aspects of the superannuation system. The ATO collects revenue, provides services to help people understand and meet their obligations, and enforces tax and superannuation laws.
When was the ATO established?
The ATO was established in 1910 following the introduction of federal income tax in Australia. Over the decades, its role has expanded to include administration of goods and services tax (GST), superannuation, and various other tax and regulatory functions.
What information does the ATO maintain?
The ATO maintains records related to:
- Individual and business tax records
- Tax File Numbers (TFNs)
- Australian Business Numbers (ABNs)
- Superannuation accounts and information
- Business activity statements
- Income tax returns
- Tax assessments and obligations
The ATO maintains strict security and privacy protocols for all the information it holds.
Individual Tax Questions
What is a Tax File Number?
A Tax File Number (TFN) is a unique identifier issued by the ATO to individuals and organizations. It's used to identify people in Australia's tax and superannuation systems. A TFN is required for employment, lodging tax returns, and many financial transactions. Once issued, a TFN remains with a person for life.
When does the Australian financial year run?
The Australian financial year runs from July 1 to June 30. This period is used for tax purposes, with tax returns generally due after the end of the financial year. The financial year timeline differs from the calendar year and is important for tax planning and compliance.
What records should individuals keep for tax purposes?
Individuals should keep records of:
- Income statements or payment summaries from employers
- Bank statements showing income and interest earned
- Receipts for work-related expenses
- Records of charitable donations
- Health insurance statements
- Rental property income and expenses
- Investment income and expenses
Generally, these records should be kept for five years from the date of lodging a tax return, as the ATO may request them to verify information.
Business Tax Questions
What is an Australian Business Number?
An Australian Business Number (ABN) is a unique 11-digit identifier issued by the ATO to businesses. The ABN is used in interactions with the ATO and other government agencies, and for business-to-business transactions. ABNs are recorded on the Australian Business Register (ABR) and are public information.
What is Goods and Services Tax?
Goods and Services Tax (GST) is a broad-based tax of 10% on most goods, services, and other items sold or consumed in Australia. Businesses with a GST turnover of $75,000 or more must register for GST, collect the tax on their sales, and claim credits for GST included in their purchases. GST is reported to the ATO through Business Activity Statements.
What is a Business Activity Statement?
A Business Activity Statement (BAS) is a form submitted to the ATO by registered businesses to report and pay various tax obligations, including:
- Goods and Services Tax (GST)
- Pay As You Go (PAYG) withholding tax
- PAYG income tax installments
- Fringe benefits tax installments
- Luxury car tax
BAS lodgment may be monthly, quarterly, or annually, depending on the size and nature of the business.
Superannuation Questions
What is superannuation?
Superannuation, often called "super," is Australia's system for people to save for retirement. Employers must contribute a percentage of an employee's earnings (currently 11%) to a superannuation fund. These contributions are invested over the employee's working life to provide income in retirement. The ATO oversees compliance with superannuation laws and regulations.
How can someone find lost superannuation?
Individuals may have lost or unclaimed superannuation from previous employment. The ATO maintains records of unclaimed super and can help individuals find and consolidate their accounts. This process involves linking superannuation accounts to an individual's tax file number and personal information.
What is the Superannuation Guarantee?
The Superannuation Guarantee (SG) is the system that requires employers to contribute to their employees' superannuation funds. Currently, employers must contribute 11% of an employee's ordinary time earnings. The ATO enforces employer compliance with SG obligations and can apply penalties for non-compliance.