У нашому останньому 39-му епізоді ви можете вивчити мову щодо податкових справ. Крім того, дізнайтеся, як говорити про податкову декларацію. Плюс довідаєтеся про те, як податкове вирахування може допомогти зменшити ваш податковий рахунок, про поради щодо відшкодування витрат...
This lesson suits intermediate learners. After listening, scroll down and test your knowledge with our quiz.
Learning notes
Language objective
How to talk about lodging a tax return
Different questions you can ask about a tax return:
- Have you done your taxes yet?
- Have you filled in your tax returns yet?
- Have you lodged your tax return?
- Have you considered using a tax agent?
- What is my tax bracket?
- What is my tax liability for this financial year?
Different phrases you can use when talking about a tax return:
- I’ve already lodged my tax return.
- You can claim that expense from your total income.
- I've crossed the tax threshold for this financial year.
- We can't avoid filing a tax return.
- I’m considering filling in my tax return with a tax agent.
Colloquial expressions:
To file/lodge a tax return means to send in completed tax return forms to the Australian Taxation Office or ATO for short.
To claim expenses means to request or seek repayment of the money you have spent on certain items or services that you have used in order to earn money.
The tax-free threshold is a level set by the government. If you earn more than this level, you have to pay tax.
To cross the tax threshold is to earn more than this level so you have to pay tax.
Vocabulary:
If something is overwhelming, it feels difficult to manage, often because it takes a long time, is difficult or complete.
If you are being proactive, you are acting promptly without delay.
If you are procrastinating about doing something, it means you are thinking about doing it and so delaying it.
If something is time-consuming, it takes a long time to complete.
A tax agent is a qualified professional who can help us prepare and send in our tax returns.
A tax bracket is a range of income that determines how much tax you must pay. The Australian tax office puts people in different brackets according to how much money they earn. If you do not earn much money, you will be in a low tax bracket; if you earn more you will be in a higher tax bracket.
A tax deduction is a cost that you have paid that the tax office allows you to claim in order to reduce the total amount of your income that is taxable.
Tax liability refers to the amount of tax you owe to the government based on your income and other financial factors.
Tax returns are the official documents and forms that individuals and businesses use to report their income, expenses, and other financial information to the government.
The tax threshold is the amount of money you can earn before you must start paying income tax.
Cultural information:
The Australian tax year, or financial year, runs from July 1st of one year to June 30th of the following year. The tax return for a specific year is typically due by October 31st of that year unless you return your forms through .
To lodge a tax return, you must have a Tax File Number, or TFN, which is a unique nine-digit number issued by the). It is used to track your tax obligations and ensure accurate reporting of your income and expenses.
The Australian tax system uses progressive taxation. This means that the more you earn, the more you pay in taxes. People who earn more are in a higher tax bracket and must pay a higher percentage of their income in taxes.
If you need to pay for certain things in order to earn money, then you can claim these expenses as deductions, that is, you can deduct the cost of these items from the total amount that you earn. This means that the amount that the tax office uses to calculate how much tax you should pay will be reduced.
Transcript:
(Note: This is not a word-for-word transcript)
SBS acknowledges the Traditional Custodians of Country and their connections and continuous care for the skies, lands and waterways throughout Australia.
Hi, my name is Josipa, and I’d like to start this episode with a quote from one of the Founding Fathers of United States, Benjamin Franklin, who famously said, “In this world, nothing can be said to be certain, except death and taxes.”
Even though it is over 200 years old, this quote is still accurate and very relevant today. Just as we know that everyone will die someday we also know that we can’t avoid paying taxes!
They are our responsibility, and they are important to pay for public services and supporting our social and government systems.
So, now that tax season is here and we can't avoid it, in this episode, we'll practise some essential phrases that will help us talk about tax returns.
You know what I’m talking about.
Tax returns are the official forms and documents that individuals and businesses send, or we could say, submit to the government to report how much money they have earned over the past year and other financial information.
Now, I know, some of you are already gathering documents, sorting through receipts, and calculating numbers but I’m not.
When it comes to lodging my tax returns, I don’t know where to start.
By the way, to “lodge your tax returns” is to submit or file, that means to send in your completed tax return forms to the Australian Taxation Office or ATO for short.
Just to clarify, filling in means entering data or completing the forms, but filing and submitting or lodging means sending the documents to the ATO.
Anyway, whether you're just starting to learn about taxes or need a refresher, this episode will help us with some of the language we need to talk about tax.
So, sit back, and relax, because Allan and Claire are here to help us learn.
Allan
Have you done your taxes yet?
Claire
No, I’m procrastinating. It’s so time-consuming and overwhelming.
Allan
I know, but we can't avoid filing a tax return. Have you considered using a tax agent?
Claire
To be honest, I’m worried about the cost.
Allan
If you file your tax return with a registered tax agent, you can claim their expense from your total income.
Josipa
I totally relate to Claire, that is I understand her. I’m procrastinating about my tax return as well.
If you are procrastinating about doing something, it means you are delaying doing it.
When you procrastinate, you usually choose to do something else that is more enjoyable or easier to do, rather than working on what you should do. Anyway, Allan said,
Have you done your taxes yet?
This is an informal way of asking someone if they have completed and submitted the necessary paperwork and calculations related to their income and expenses for the year.
You could also ask,
Have you filled in your tax returns yet?Claire
Or we can use a verb you heard me say before,
Have you lodged your tax return?Allan
When you lodge your tax returns or file your tax returns, you are telling the government about how much money you earned, any expenses you can deduct, that is subtract or take away, from the total that you have earned, and other important financial information.
This helps the government figure out how much tax you need to pay. Claire then replied,
No, I’m procrastinating.
We already heard that procrastinating means delaying doing something. But if you are not procrastinating, and if you are acting promptly without delay, you could say,
I’m being proactive. I’ve already lodged my tax returns.Allan
Claire also said that for her, filing a tax return is,
It's so time-consuming and overwhelming.
For Claire, doing her taxes needs a lot of time and effort. What about you? Do you find lodging a tax return difficult or are you proactive about it?
In the dialogue we heard that Claire hasn’t used a tax agent because she is worried about the cost, to which Allan replied,
Allan
If you file your tax return with a registered tax agent, you can claim their expense from your total income.
A tax agent is a qualified professional who can help us prepare and lodge our tax returns. In Australia, they must be registered with the Tax Practitioners Board.
Now, I know that tax season can be a bit scary for many of us. Even Albert Einstein said, "The hardest thing in the world to understand is the income tax."
But we don’t have much choice. In Australia, we have a responsibility to understand the tax system.
The Australian tax year, or financial year, runs from July 1st of one year to June 30 th of the following year.
The tax return – that is, the forms we have to submit to the tax office - for any financial year is typically due by October 31st of that year, but if you lodge your form through a registered tax agent, you can usually have a later deadline.
Claire decided to stop procrastinating, so she gathered all her documents and went to see a registered tax agent, who sounds very much like our Allan. How incredible!
Allan
Based on the information you provided, it seems you've crossed the tax threshold for this financial year.
Claire
Yes, I earned more this year. What does that mean for my taxes?
Allan
Crossing the tax threshold means you'll enter a specific tax bracket. In your case, your income places you in the 32.5% tax bracket.
Claire
So, I'll have to pay 32.5% of my income in taxes?
Allan
Not exactly. The way taxes work is called progressive taxation. It means that as you earn more money, different parts of your income are taxed at different rates. You don’t pay any tax on the first $18,200 that you earned because that is your tax-free allowance. The next part of your income is taxed at 32.5%, but as you earn more, higher rates apply to the rest of your income.
Claire
I see. So, what is my tax liability for this financial year?
Let’s get straight to work, Allan said,
It seems you've crossed the tax-free threshold for this financial year.
The tax-free threshold is the amount of money you can earn before you must start paying income tax.
It's like a minimum income limit. You don't have to pay taxes on the money you earn up to that point. At the time of publishing this episode in Australia, the tax-free threshold is $18,200.
If you earn less than the tax-free threshold you don’t need to pay any taxes.
But if you earn more, like Claire, then you are crossing the tax-free threshold, and you'll need to start paying taxes.
Let’s hear how Allan explained it.
Allan
Crossing the tax threshold means you'll enter a specific tax bracket. In your case, your income places you in the 32.5% tax bracket.
A tax bracket is a range of income that determines how much tax you must pay. The ATO puts people in different brackets according to how much money they earn.
If you do not earn much money, you will be in a low tax bracket; if you earn more you will be in a higher tax bracket.
The Australian tax system uses progressive taxation, which means that the more you earn, the higher the tax rate you'll pay.
If like me, you are struggling to make this calculation, you can ask your tax agent.
What is my tax liability for this financial year?Claire
Liability means a debt or something you owe. So, a tax liability means the amount of tax you owe to the government. The opposite of a liability is an asset.
What did you think of this song? Did it make you smile? This song, ‘Banish the Budget Blues’ was written during a tough economic time in Australia and the world – The Great Depression in the 1930s. It was supposed to make people feel better during a difficult time.
But you're absolutely right! Singing won't directly affect how much we pay in taxes. But there's something else that can actually help us reduce our tax bill.
It's called a tax deduction. Basically, a tax deduction is an expense that we can substract from our total income, which means we end up paying taxes on a lower amount.
Our guest today is Haig Garabedian,who has years of experience helping individuals navigate the complex world of tax returns. Haig, thank you for joining us.
Haig
Thank you for having me.
Josipa
So, what are some common types of tax deductions that people can claim?
Haig
There are lots of tax deduction, or expenses, that people can claim. The principle is that it has to be linked to your work.
The most common one is, for example, if you travel using your car or public transport from work to visit clients for work purposes. This can be claimed against your income.
And if you work from home, you can deduct some of the expenses like electricity or internet bills.
Also, expenses for professional development courses and self-education, such as course fees or textbooks that are directly related to your work or career, as well as union fees, may also be eligible for deduction.
Josipa
Are there any expenses that are not work-related that we can claim?
Haig
Yes, if you make donations to registered charities, you can claim those as deductions. Also, the personal contributions that you make to superannuation funds, that is, your special retirement savings accounts, can be claimed as deductions too.
Josipa
Anything else we need to keep in mind?
Haig
When it comes to deductions, remember that each deduction has its own set of rules, so it's important to have receipts as proof for the expenses you're claiming. When we file our taxes, it's crucial, to be honest and accurate.
We should only claim the expenses that we have truly made and that are eligible, that is, are allowed by the rules. If you're not sure about anything, it's always a good idea to check out the guidelines provided by ATO or have a chat with a tax professional.
Josipa
Haig, thank you so much for sharing your knowledge with us today.
Haig
It was my pleasure, Josipa. And before I go, I’d like to share the importance of us paying taxes because the government uses this money on welfare, housing, defence, education and all what makes our life what it is now. Just like we pay a price for anything else that we buy, we also pay taxes.
It is the way we contribute to the well-being of our community and ensuring that everyone has access to essential services and a better quality of life.
A big thank you to our educational consultant Professor Lynda Yates and, our expert guest Haig Garabedian.
Paul Nicholson and Lily O'Sullivan voiced the characters of Allan and Claire. An AI voice was used for Benjamin Franklin, while Benjamin Kanthakn played the role of Albert Einstein.
