If you’ve been wondering, “Do I need to lodge a tax return?”, the answer is most likely “yes”.
Most Australians are required to lodge a tax return or non-lodgement advice form by 31 October.
However, if you earned less than $18,200, received government benefits, or had a short-term working Visa, our tax experts are here to clear up any confusion. We’re dedicated to helping Australians take the stress out of tax time and get the maximum refund they are entitled to.
Our tax return guide will cover various situations, including those on government benefits, working individuals, and short-term visa holders to help you feel confident come tax time.
When Do You Need to Lodge a Tax Return in Australia?
Income Thresholds and Tax Obligations
The need to lodge a tax return in Australia is mainly determined by your income. In Australia, $18,200 is the income threshold. This means if your taxable income exceeds $18,200, you are required to lodge a return.
However, depending on your age, income, residency status, or if you’re a student, it may influence your need to lodge a return.
We always like to emphasise that income isn’t just money you earn from your job. The ATO defines income as your total earnings from all jobs and other sources of income, including side jobs, interest, and investments.
If your taxable income is below the $18,200 tax-free threshold and you didn’t pay tax, you most likely won’t need to lodge a return. However, if you paid income tax, you’ll still need to lodge a return even if you fall below the income threshold.
If you fall below the tax-free threshold and didn’t pay income taxes or didn’t work this year, you are still required to fill out the Non-Lodgement Advice Form. This lets the ATO know that you are not required to lodge a return for the financial year.
If you do not fill out the Non-Lodgement Advice form, the ATO will mark you down as failing to lodge. This will lead to an outstanding return and possible penalties against you.
Still unsure about your need to lodge a tax return? We frequently recommend this helpful tool: Do I need to lodge a tax return? A Simple Tax Calculator from the ATO.
Do I Need a Group Certificate to Lodge Tax Return?
Another big question we hear is, “Do I need a group certificate to lodge a tax return?”.
A group certificate, now called an income statement, is usually not required to lodge a tax return. However, even if it is not required for submitting a tax return, it helps ensure the accuracy of income reporting.
Your employer will give you either an income statement at the end of the year or they will report a payment summary through Single Touch Payroll.
Your income statement can be accessed online through a myGov account with ATO.
As long as your income statement from MyGov doesn’t say “not tax ready”, you should be ready to lodge.
Here is a link to easily accessing your income statement via MyGov: Access your income statement | Australian Taxation Office. If your income statement is missing, you’ll need to contact your employer or the ATO.
Do I Need to Lodge a Tax Return on Centrelink?
Centrelink Recipients and Tax Obligations
Some Centrelink payments are taxable, while others are not. We know it can be confusing to sort through taxable vs. non-taxable Centrelink payments so we’ve broken it down below.
Examples of taxable Centrelink payments include:
- ABSTUDY Living Allowance (if you are over 16)
- Age Pension
- Austudy
- Carer Payment, if you or the care receiver is Age Pension age
- Dad and Partner Pay
- Disability Support Pension (must be Age Pension age)
- Disaster Recovery Allowance
- Farm Household Allowance
- JobSeeker Payment
- Parental Leave Pay from us
- Parenting Payment
- Special Benefit
- Youth Allowance (16 and older)
Here are examples of Non-taxable Centrelink payments:
- Family Tax Benefit
- Child Care Subsidy
- Additional Child Care Subsidy
- Child support received from another parent
If you need guidance on how Centrelink payments can interact with other income, we recommend contacting a tax professional or the ATO to determine if lodging is necessary.
We also recommend this helpful resource for more details on Centrelink tax obligations: Taxable Centrelink payments – Services.
Reporting Centrelink Payments to the ATO
While some Centrelink recipients may not need to lodge a return, they still need to report their payments to the ATO in certain cases.
If you receive taxable Centrelink payment, such as a Carer Payment or Farm Household allowance, you may need to lodge a tax return at the end of the financial year.
We recommend linking your ATO account to MyGov services for the easiest option. By linking the two, it is relatively easy to complete your tax return using the pre-filled information. You can also submit a no return necessary using the ATO’s portal.
Do Short-Term Visa Holders Need to Lodge a Tax Return?
Tax Responsibilities for Working Visa Holders
Individuals on short-term working visas may need to lodge a return based on their residency status and the income earned during their stay.
We find that this is one of the more confusing parts of tax season for many individuals. The rules and regulations surrounding tax obligations and short-term working Visas can be difficult to understand.
We recommend this helpful, detailed page from the ATO: Working holiday makers. Here, you can learn all the rules for lodging a tax return in Australia if you are a working holiday maker.
Claiming Refunds and Avoiding Double Taxation
Various international agreements are in place to help avoid double taxation for temporary residents. Short-term visa holders may be able to claim refunds for overpaid taxes.
According to the ATO, “if you’re an Australian resident for tax purposes and have a temporary resident visa, you don’t pay tax on most of your foreign income in Australia”.
If you want to learn more or check if you need to declare foreign income and pay taxes, we recommend this resource from the ATO: Australian resident foreign and worldwide income.
If you are a working Visa holder and need help navigating tax time, we’re happy to answer your questions and determine if you have a refund you can claim.
What Happens If You Don’t Lodge a Tax Return?
Consequences of Not Lodging
If you are required to lodge a tax return but fail to do so, you will likely face penalties and interest charges from the ATO.
While the ATO is strict about failure to lodge or exaggerated deductions, we often hear from clients who are surprised at how easy the ATO is to work with. If you notify the ATO immediately regarding failure to lodge, they will be more willing to work with you.
They may help you by establishing a payment plan or minimising the fees you need to pay. If you have outstanding tax returns, be sure to lodge them as soon as possible.
Learn more about what to do if you fail to lodge a tax return in our guide here: Tax Deadline – If You Fail to Lodge Your Tax Return, What Happens?
How TaxReturn.com.au Can Help You Lodge Your Return
If the tax filing deadline in Australia has you overwhelmed, our team is ready to help. We can determine whether you need to lodge a return or submit a non-lodgement document.
Our certified tax specialists can help lodge returns for all types of taxpayers, including those on Centrelink or temporary visa holders.
We also offer a variety of free online tax tools and guides, such as our Income Tax Calculator and Tax Guides for Australia, to help you navigate the tax season with ease.
Take the Stress Out of Tax Season in Australia
Most Australians need to lodge a tax return. Even if you do not work or fall below the $18,200 income threshold, you are still required to file a non-lodgement document with the ATO.
Unsure if you need to lodge a tax return? Our team at TaxReturn.com.au can provide expert guidance and help you lodge your return quickly and easily. Get started online today by registering with us or contact us for personalised assistance!
