Do I Need to Lodge a Tax Return in Australia?

The Simple Answer

The $18,200 tax-free threshold has been stable for many years. The ATO confirms whether it has changed for a given income year. The ATO’s Do I need to lodge tool is the most reliable check for your specific circumstances each year.

Important: even if you are not technically required to lodge, if any tax was withheld from your income, you will receive that money back as a refund by lodging. In most cases it is worth lodging regardless.

Full Checklist: When You Must Lodge a Tax Return

You are required to lodge an Australian tax return if any of the following apply: INCOME AND TAX WITHHELD

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  Your taxable income exceeded the tax-free threshold ($18,200 for full-year residents)
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  Tax was withheld from your wages, salary, or any other payments during the year, even if the total was small
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  Tax was withheld from interest, dividends, or investments (for example, because you did not quote your TFN to your bank)
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  ou received a PAYG instalment notice from the ATO and made quarterly prepayments of income tax

INCOME TYPES THAT REQUIRE LODGMENT

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  You carried on a business in Australia as a sole trader, partner, or through a company or trust
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  You had a capital gain from selling shares, investment property, cryptocurrency, or any other CGT asset
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  You received foreign income while an Australian resident (from overseas employment, investments, or pensions)
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  You received trust or partnership distributions
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  You had reportable fringe benefits shown on your income statement from your employer
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  You received a superannuation lump sum that included an untaxed element paid to you as a non-dependant (aged 60 or over)

GOVERNMENT PAYMENTS

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  You received a taxable government payment such as JobSeeker, Austudy, ABSTUDY, Farm Household Allowance, Parenting Payment (partnered), Youth Allowance, or Disability Support Pension, AND you had other income during the year
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  You received Disaster Recovery Allowance or Community Development Employment Project (CDEP) payments

SUPERANNUATION

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  Your concessional or non-concessional super contributions exceeded the annual caps. The ATO publishes the current-year caps at ato.gov.au/super-contribution-caps
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  You made personal super contributions and want to claim a tax deduction for them

STUDY DEBT (HECS-HELP AND SIMILAR)

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  Your income exceeded the compulsory repayment threshold, and you have a HECS-HELP, VSL, SSL, ABSTUDY SSL, or AASL debt. The ATO calculates the compulsory repayment on your return. Check the current repayment threshold at ato.gov.au

SPECIAL CIRCUMSTANCES

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  You are entitled to a private health insurance rebate that you have not received through reduced premiums
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  You had a reportable employer super contribution on your income statement
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  You are a special professional (author, inventor, performing artist, active sportsperson) using income averaging provisions
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  You held a Working Holiday Maker visa (subclass 417 or 462) and earned any Australian taxable income

When You Do Not Need to Lodge

You are generally not required to lodge if ALL of the following apply:

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  Your taxable income was $18,200 or less for the year
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  No tax was withheld from any income you received during the year
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  None of the circumstances listed above applies to you

Even if you are not required to lodge, if any tax was withheld from your income, you will receive a refund by lodging. For most low-income earners, lodging is the right decision.

If you have confirmed you are not required to lodge, notify the ATO by submitting a non-lodgment advice (explained below). This prevents your return from appearing overdue and stops the ATO from sending reminders.

Lodgment Rules by Residency Status

Full-Year Australian Residents

If you were an Australian resident for tax purposes for the full income year (1 July to 30 June), the $18,200 tax-free threshold applies. Taxable income = assessable income minus allowable deductions. If this is $18,200 or less and no tax was withheld, you are not required to lodge.

Part-Year Australian Residents

If you arrived in Australia or departed during the income year, your tax-free threshold is pro-rated based on the number of months you were an Australian resident. The formula: $13,464 plus ($4,736 x months of Australian residency / 12). For example, nine months of residency gives a threshold of $13,464 + ($4,736 x 9/12) = $17,016.

Foreign Residents

Foreign residents have no tax-free threshold. If you had any taxable Australian-sourced income ($1 or more) or had any tax withheld from Australian payments, you must lodge. Foreign residents pay tax on the first dollar of Australian income at non-resident rates.

Working Holiday Makers

Working holiday makers (visa subclasses 417 and 462) are taxed at 15% on the first $45,000 of Australian income (not the resident marginal rates). You must lodge a tax return if you earned any Australian taxable income as a working holiday maker.

Common Situations

Students and Young People

If you are a student earning below $18,200 and no tax was withheld, you generally do not need to lodge. However, if your employer withheld tax from your part-time wages (which happens automatically), you should lodge a claim it back. Students with study debts (HECS-HELP, etc.) who earn above the compulsory repayment threshold must lodge a return each year.

Retirees and Pensioners

Most retirees with income below the tax-free threshold and no tax withheld do not need to lodge. However, if you received taxable government payments (such as the Aged Pension) and had other income, you may need to lodge. Retirees who had any tax withheld should lodge a claim for a full or partial refund.

People Who Had No Income

If you had absolutely no taxable income and no tax was withheld, you are not required to lodge. Submit a non-lodgment advice through myGov to keep your ATO account current. If you received Centrelink payments plus any other income, check whether the combined total exceeds $18,200.

Sole Traders and ABN Holders

If you operated any business activity as a sole trader during the income year, you must lodge a tax return regardless of income level. Business income, losses, deductions, and GST all require annual reporting through your individual return. Even a business loss must be reported so it can be carried forward.

What Is a Non-Lodgment Advice?

A non-lodgment advice is how you tell the ATO that you are not required to lodge a tax return for a particular income year. If you do not lodge and do not submit a non-lodgment advice, the ATO will consider your return overdue and may send reminders or apply penalties.

How to submit: log in to myGov and open the ATO section, then select ‘Lodge a non-lodgment advice’. Your registered tax agent can also submit it on your behalf. See the ATO’s non-lodgment advice page for the current process. Submit one for every income year you are not required to lodge.

What Happens If You Don't Lodge?

Failing to lodge when required triggers the ATO’s failure to lodge (FTL) penalty. This is $330 per penalty unit, with one unit for each 28-day period (or part thereof) the return is overdue. The maximum penalty for individuals is five units ($1,650). Penalties apply per return per year, so multiple outstanding returns accumulate separately.

Tax Return Due Dates

The Australian income year runs from 1 July to 30 June each year. Lodge your return for the income year that just ended by the following deadlines:

How The Kalculators Can Help

If you are unsure whether you need to lodge, our registered tax agents in Adelaide can quickly review your situation. If you do need to lodge, we handle the whole process: reviewing your income sources, identifying every deduction you are entitled to, and lodging through the ATO’s secure portal with the extended deadline that comes with using a registered tax agent.

Check our tax return checklist to see what to prepare before your appointment. If you have not lodged for one or more prior years, our individual tax return service manages catch-up lodgments and liaises with the ATO on your behalf.