We often get asked by clients if they are required each year to lodge a tax return. This is especially true of those with low incomes or have recently retired.
Under normal circumstances, if you earned $18,200 or less in the past financial year AND you had no tax withheld from that income, you might not be required to lodge a tax return.
However, low income earners may still need to lodge a tax return if their taxable income is under this tax-free threshold amount.
Common reasons for this include, if they:
- had pay as you go (PAYG) withheld from payments received during the year
- had a reportable fringe benefits amount on their PAYG payment summary
- had reportable employer superannuation contributions on their PAYG payment summary
- made a loss or can claim a loss made in a previous year
- were an Australian resident for tax purposes and had exempt foreign employment income and $1 or more of other income
- are entitled to the private health insurance rebate but did not claim their correct entitlement as a premium reduction
- claimed a private health insurance rebate through their fund but due to their spouse having high taxable income may be required to pay it back
- were a liable or recipient parent under a child support assessment unless they received one or more Australian Government allowances, pensions or payments for the whole year and their income was less than $24,154.
If any of these circumstances affect you and not sure what to do, please let us know.
