DO I NEED TO LODGE A TAX RETURN?

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June 17, 2025 | pwsbuilder |

Each year, many Australians ask the same question as tax time approaches: Do I need to lodge a tax return? The answer depends on your individual circumstances, including your income level, age, residency status, and any tax withheld during the financial year. Understanding whether you’re required to lodge a return can save you both time and potential penalties.

WHO MUST LODGE A TAX RETURN?

Most people who earn income in Australia will need to lodge a tax return with the Australian Taxation Office (ATO). You must lodge a return if:

  • You earned more than the tax-free threshold ($18,200 for most people).
  • You had tax withheld from any income, including wages, interest, or government payments.
  • You received income from freelance work, investments, or rental properties.
  • You’re a resident for tax purposes and earned foreign income.
  • You’re entitled to private health insurance rebates or want to claim deductions.

Even if your income is below the threshold, you may still need to lodge if you had tax withheld. Doing so ensures you get any refund owed.

SITUATIONS WHERE YOU MIGHT NOT NEED TO LODGE

You may not need to lodge a return if:

  • Your income was under the tax-free threshold, and you had no tax withheld.
  • You are under 18 and earned passive income (like bank interest) below specific limits.
  • You received only government pensions or allowances exempt from tax.

In these cases, it’s still important to notify the ATO by lodging a “non-lodgment advice” to confirm you’re not required to lodge a return. This prevents follow-up letters or penalties.

SPECIAL CIRCUMSTANCES

  • Students and Part-Time Workers: If you had casual or part-time work and tax was withheld, it’s worth lodging to potentially receive a refund.
  • Seniors and Pensioners: The ATO has special tax offsets for older Australians. You may not owe tax but may still need to lodge to access benefits.
  • Deceased Estates: If someone has passed away, their legal representative may need to lodge a return for them.

HOW TO FIND OUT FOR SURE

The ATO provides an online tool, the Do I Need to Lodge a Tax Return? questionnaire, which guides you through a few questions to help determine your obligation. It’s a quick and reliable way to check your status based on the latest rules.

CONCLUSION

In summary, whether you need to lodge a tax return depends on your income, tax withheld, and personal circumstances. When in doubt, use the ATO’s online tool or speak to a registered tax agent. Lodging when required and even when not strictly required can ensure you get any entitlements and stay in the ATO’s good books.

Let me know if you’d like to explore how to lodge a return online or check what deductions you might be eligible for.

Disclaimer: This document should not be interpreted as tax advice. All information is of a general nature only and might no longer be up to date or correct. You should seek professional accredited tax and financial advice when considering whether the information is suitable to your or your client’s circumstances.