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• Why do I owe the ATO money?

  It can be surprising to get a tax bill, especially if you thought everything was already taken care of during the year. But receiving a tax bill doesn’t mean you’ve done anything wrong. It usually means the tax you paid during the year didn’t fully cover what you owe.

  
  

  Below, we explain some of the most common reasons you may have received a tax bill and what you can do to avoid it in the future

  
  

  Do you have a study loan like HECS or HELP? 

  One of the most common reasons you may have a tax bill is because of your HECS debt. Once your income reaches a certain threshold, you’re required to start making compulsory repayments.

  
  

  What tends to happen is: 

  • you may not have told your employer you had a HECS debt, so they didn’t withhold enough tax to cover your compulsory repayments, or  
  • your income went up – meaning you may have to repay more than what was already withheld.  

  These are easy fixes - just make sure you update your withholding declaration with your employer to declare you have a HECS debt. This will help ensure the right amount of tax is taken out each payday.

  
  

  Do you have a side hustle, earning business or investment income? 

  This income isn’t usually taxed when you receive it.

  
  

  This includes:

  • bank interest
  • investment income (like shares or crypto)
  • rental income
  • content creation, freelance work or side hustle.

  Because tax isn’t taken out upfront, you’ll need to pay tax on this income when you lodge your tax return.

  
  

  If you earn more than $4,000 over the year, we’ll enter you into the pay as you go (PAYG) instalment system. This means you’ll make regular payments towards your tax throughout the year, instead of facing a large bill at tax time. You can read more about this in our PAYG Instalments article. 

  
  

  Do you need to pay the Medicare Levy Surcharge? 

  The Medicare Levy Surcharge (MLS) is an extra charge on top of the Medicare Levy. It’s designed to encourage high income earners to take out private health insurance which eases pressure on the public health system.

  
  

  If you and your family have an appropriate level of private hospital insurance for the full year – you won’t pay the MLS.

  
  

  But, if you and your family don’t have this type of cover and you’re earning over the MLS threshold, you’ll have to pay it when you lodge your tax return.

  
  

  How do I pay my tax bill?

  You can pay your tax using one of our payment options. You need to pay your tax in full and on time to avoid general interest charges (GIC).

  
  

  If you’re experiencing financial difficulties and can't pay on time, you may be eligible to set up a payment plan. Payment plans require an up-front payment, and repayments should be completed within the shortest possible timeframe to help reduce the GIC that continues to accrue.

  
  

  If you need support, get in touch with us or your registered tax professional before the due date. We’ll work with you to find a solution.

  

  Question by BrookeATO
  5 Aug 2025

• How to apply for an ABN and keep your details up to date

  Applying, reactiviating, finding or registering for an ABN? We've got all the info you need.An Australian Business Number (ABN) is a unique 11-digit identifier for businesses in Australia. This article explains how to apply for an ABN, update your details or cancel your regisration, plus everything else you need to manage your ABN. ## When do I need an ABN? Not everyone’s entitled to an ABN but if you’re running a business or working as a contractor, you might need to apply for one. We’ve got info to help you [work out if you’re in business](https://www.ato.gov.au/businesses-and-organisations/starting-registering-or-closing-a-business/starting-your-own-business/are-you-in-business) and when your business starts for tax purposes. You’ll need an ABN regardless of how much you earn if you’re: - an independent contractor - an online influencer/ content creator - a taxi or rideshare driver. [Working for a food delivery service?](https://community.ato.gov.au/s/article/a079s0000009GmyAAE/working-for-a-food-delivery-service) Our article has more info on when you need an ABN and register for GST. You usually don’t need an ABN unless your business earns over $75,000 a year – at which point you __must__ register for GST. But you may decide to apply for an ABN sooner as you need an ABN to: - operate in the GST system and claim the GST credits you’re entitled to - enter the pay as you go (PAYG) withholding system - offer fringe benefits to your employees. ## How do I apply for an ABN? Worked out you're entitled to an ABN? You can __apply online for free__ through the Australian Business Register (ABR). There’s __no age limit__ to get ABN – anyone can apply! But you’ll need your TFN and identity documents handy when you do. If your application is successful, you’ll be issued with your 11-digit ABN immediately. You can also check the [ABN Lookup](https://abr.business.gov.au/) at any time to see when your ABN has been successfully processed. It's your responsibility to keep your ABN details up to date. You __must__ [update your ABN details](https://www.abr.gov.au/business-super-funds-charities/updating-or-cancelling-your-abn/update-your-abn-details) on the ABR in __28 days__ of any changes. This includes things like your business address or if you start offering new services (like getting a liquor licence or providing accommodation). To [apply for an ABN](https://www.abr.gov.au/business-super-funds-charities/applying-abn) and find out more about the application process, head to the ABR. ## How can I reactivate my ABN? Generally, we’ll cancel your ABN if it looks like it isn’t being used. If you [still need your ABN](https://www.ato.gov.au/businesses-and-organisations/small-business-newsroom/do-you-still-need-your-abn) for the same business structure, you can reapply through the ABR. Just enter your previous ABN and current business details on the application. Once your ABN has been reactivated, you'll be ready to dive back into business! ## Can I backdate my ABN? Yes! You can backdate your ABN when you submit a new application by choosing an earlier starting date. The date on your application should reflect when your business started operating. ## Where can I find my ABN branch number? You can find your ABN branch number any time using our ATO online services or online services for business. After you login, select __Tax__, then __Accounts__, then __Tax accounts__. Your ABN branch number is displayed under the __activity statement__ section. It's the three-digit number before the account name you have registered. If you have more than one branch, an account will display for each. ## How do I get an ABN registration certificate? If you have access to Online services for business, you can access your ABN certificate under __My profile > Communication > History__. If you can’t find it online, here's how you can [get a paper copy of your ABN details](https://www.abr.gov.au/business-super-funds-charities/applying-abn/your-business-information-abr/paper-copies-abn-details). ## How do I cancel my ABN? Closing up shop? If you’re no longer entitled to an ABN, you’ll need to tell us in __28 days__. Generally, people cancel their ABN if their business: - has been sold - has closed down - no longer operates in Australia, or provides goods and services connected to Australia. Before you cancel your ABN, make sure all your lodgments, payments and reporting obligations are up to date with us and other agencies. If you have pay as you go (PAYG) withholding, remember to cancel that too! When you're ready, the quickest and easiest way to cancel your ABN is online using myID. Follow our instructions on [cancelling your business registration](https://www.ato.gov.au/businesses-and-organisations/starting-registering-or-closing-a-business/changing-selling-or-closing-your-business/cancelling-business-registrations). ## Can I keep my ABN details private? Your ABN details allow your customers to check your business registration is current. There are some situations where your ABN details can be kept private. You can make a request for non-disclosure of your ABN details if: - there’s risk to your personal safety or the safety of anyone associated with your business. - there are exceptional circumstances that support your request. Check out [when you can request non-disclosure](https://www.abr.gov.au/business-super-funds-charities/applying-abn/your-business-information-abr/request-non-disclosure-abn-details) and what happens if your application is successful. To [get started and register for business](https://www.ato.gov.au/businesses-and-organisations/starting-registering-or-closing-a-business/registration-obligations-for-businesses), head to our website.

  

  Article by ATO Community
  29 Oct 2026

• What work-related tax deductions can I claim?

  Unsure what you can claim this tax time? Let’s look at how to claim work-related deductions.It’s the million-dollar question we get every year – what can I claim and how can I claim it? So, let’s break it down! Deductions reduce the amount of tax you pay. Think of it like this: - you start with what you earned (your income), - then subtract what you can claim (your deductions), - what’s left is what you pay tax on. If you’ve paid too much tax, you’ll receive a refund. If you haven’t paid enough tax, you’ll have to pay the difference. ## What can I claim? The most common deductions we see are work-related expenses. Work-related expenses are out-of-pocket costs you incur to earn your income but aren’t reimbursed by your employer. There are 3 golden rules to remember when claiming deductions: - you paid for it yourself (and weren't reimbursed) - it directly relates to earning your income - you have records to prove it (like a receipt). ## How can I claim a deduction? ### Step 1: Check if it's work related. Ask yourself, ‘If I didn’t have this job, would I still have this expense?’ If yes, it’s probably not claimable. ### Step 2: Make sure you paid for it. You can only claim what you paid yourself. If your employer paid or reimbursed you for the expense, you can’t claim it. ### Step 3: Work out the work-related amount. If something is used for both work and personal use, you must split it and only claim the work-related portion. For example, if 10% of your phone use is for work, you can only claim 10% of the phone bill as a work-related expense. On top of your work-related expenses, you may be able to claim a tax deduction for your working from home expenses, if you: - work from home to fulfil your work duties (not just minor tasks) - have extra costs because of it - keep records to support your claim. If you’re eligible to claim working from home running expenses, there are 2 ways to calculate your deduction. __The fixed rate method__ The  [fixed rate method](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/working-from-home-expenses/fixed-rate-method-67-cents)  is a simple way to calculate your work from home deductions. You claim a set rate for each hour you work from home, rather than tracking individual expenses. The rate for the 2025-26 tax return is __70 cents per hour__. The rate accounts for typical running costs associated with working from home, such as: - energy costs (electricity, gas) - phone and internet usage (both home and mobile) - stationery and computer supplies (printer ink, paper, pens). If you use this method, you can't claim these expenses anywhere else in your tax return. However, the fixed rate doesn’t cover larger equipment purchases. You can still claim these separately, just remember: - If the item __costs $300 or less__, you can generally claim the full cost immediately in the year you buy them. This may include items such as keyboards, computer mouses, power boards, desk lamps and chargers. - If the item  __cost more than $300__, you must claim the [decline in value](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/tools-computers-and-items-you-use-for-work/depreciating-assets-you-use-for-work) over time. This may include desks, monitors, chairs and laptops. __The actual cost method__ The actual cost method allows you to claim the exact work-related portion of all your working from home expenses, rather than using a flat rate. This can include: - a percentage of your electricity and gas bills - your phone and internet costs, based on work usage - office supplies and consumables - depreciation of equipment and furniture. While this method can sometimes result in a larger deduction, it’s more complex. It needs: - careful calculations to determine the work-related portion of each expense - detailed records, receipts, and evidence - a clear method showing how you split work vs private use. Because of the extra effort and documentation required, this method generally suits people who have higher running costs or dedicated home office setups. ### Step 4: Keep a record. You need proof for your claim. This is usually: - receipts or invoices - logs, diaries or calculations (for things like travel or working from home). You don’t send these with your tax return, but you must keep them in case you’re asked later. The [myDeductions](https://www.ato.gov.au/online-services/online-services-for-individuals-and-sole-traders/ato-app/using-mydeductions/mydeductions)  tool in the ATO app makes it easy to store your records and keep track of your work-related expenses (and other deductions) in one place. ### Step 5: Add it to your tax return. When you lodge your tax return: - include your expenses in the __correct section__ (for example, work related expenses), - enter a description of the expense, - enter the total amount you’re claiming. ## $1000 standard tax deduction The proposed standard deduction for work-related expenses of up to $1,000  __does not apply to your 2025-26 tax return__ (also known as the $1,000 instant tax deduction). This proposed change is not yet law. If passed, the standard deduction is expected to apply from the 2026-27 tax return.   Visit our website for more info on the [deductions you can claim](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/occupation-and-industry-specific-guides).

  

  Article by ATO Community
  24 June 2026