Do you need to lodge a tax return for individuals? Usually YES but often NO.
When To Lodge a Tax Return
The rules can be confusing at the best of times. So we wanted to give you an overview when to lodge an i return – a tax return for individuals.
Some thresholds change every year and for those we will just give you rough ballmark figures, so that you get a rough idea.
You – let’s assume it is your tax return we are talking about – need to lodge an Australian income tax return if any of the following applies to you.
# 1 PAYG
You are an Australian resident and paid PAYG. So your employer either withheld tax from your salary or wages. Or you paid PAYG through instalments.
# 2 SAPTO
You were eligible for the Seniors and Pensioners Tax Offset (SAPTO) and your rebate income is more than a certain threshold.
Your rebate income – just yours, not including your spouse’s – is your taxable income plus reportable employer superannuation contributions, a net rental loss and a few other things.
The thresholds are between $28,000 and $33,000. So if your rebate income is below $28,000, you probably don’t need to lodge. And if it is over $33,000 then you most likely do.
# 3 Australian Government Payment
You received another Australian Government payment, even though you weren’t eligible for SAPTO. And with that and any other taxable payments you might have received you made more than $20,000.
There is a long list of Australian Government payments, that fall into this category. The most common ones are Newstart, youth, partner, sickness, widow, disaster recovery, disaster income support and farm household allowances. As well as Austudy payment, ABSTUDY and parenting payment (partnered). There is more but this is to give you an idea.
# 4 Tax-Free Threshold
You are an adult as of 30 June, your taxable income is more than $18,200 and you were an Australian resident for tax purposes for the full year. Sounds reasonably straight forward, doesn’t it? But now come all the ifs and buts.
If you were only a resident for part of the year, the $18,200 is apportioned over the relevant days.
The threshold of $18,200 drops to $416 if you are under 18 years old at 30 June and your income was not salary or wages.
And it drops to $1 if you are a foreign resident and you have income taxable in Australia which did not have a final non-resident withholding tax withheld from it.
Assuming with all this that you weren’t eligible for SAPTO in # 2 and didn’t receive any payments listed under # 3. If you did, # 2 or # 3 would apply.
And also assuming that you didn’t receive any age pension, bereavement allowance, carer payment, disability support pension, education entry payment, parenting payment (single), widow B pension, wife pension, age service pension, income support supplement, Defence Force income support allowance (DFISA) relating to a taxable amount, DFISA-like payment from the Department of Veterans’ Affairs (DVA), veteran payment, invalidity service pension or partner service pension.
# 5 Reportable FBT
You had a reportable fringe benefits amount on your PAYG payment summary.
# 6 Reportable Employer Superannuation Contributions
You had a reportable employer superannuation contribution on your PAYG payment summary.
# 7 Private Health Insurance
You were entitled to the private health insurance rebate but you did not claim your correct entitlement as a premium reduction. And your spouse (if you had one) is not claiming the rebate for you in their income tax return.
# 8 Business
You carried on a business.
# 9 Loss
You made a loss (be it revenue or capital) in the current income year. Or you can claim such a loss this year made in a previous year.
# 10 Superannuation Lump Sum
You either received an Australian superannuation lump sum that included an untaxed element. Or you received a superannuation lump sum death benefit paid to you as a non-dependant.
# 11 Under 60 with Taxed Element
You are under 60 years old. And you received an Australian superannuation lump sum that included a taxed element.
# 12 Primary Production
You were entitled to a distribution from a trust or you had an interest in a partnership. And the trust or partnership carried on a business of primary production.
# 13 Exempt Foreign Employment Income
You were an Australian resident for tax purposes with exempt foreign employment income. And you had $1 or more of other income.
# 14 Income Averaging
You are an author of literary, dramatic, musical or artistics works. Or you are an inventor, performing arts, production associate or an active sportsperson. In short you are a so-called ‘special professional’ – covered by the income averaging provisions.
# 15 Dividends or Distributions
You received income from dividends or distributions exceeding $18,200 (or $416 if you were under 18 years old on 30 June 2018). And you either had franking credits attached. Or you had amounts withheld because you did not quote your TFN or ABN to the investment body.
‘Hold on,’ you might say. Didn’t that threshold already come in through #4? Correct but #4 had a long list of assumptions attached. Do you remember? So this is to ask you for a tax return again if you fell through the cracks in #4.
# 16 Working Holiday Visa
You derived Australian sourced taxable income of $37,001 or more while you were on a working holiday visa (417 or 462 visa)
# 17 Personal contributions
You are eligible to receive a super co-contribution for non-concessional contributions to a complying superannuation fund or retirement savings account.
# 18 Concessional Contributions
Your concessional contributions to your super exceeded the concessional contributions cap.
# 19 Non-Concessional Contributions
Your non-concessional contributions exceeded your non-concessional contributions cap.
# 20 Child Support
You were a parent under a child support assessment. Either as a liable parent or a recipient parent.
However, you don’t need to lodge a tax return if you received Australian Government allowances, pensions or payments for the whole of the period 1 July 2017 to 30 June 2018 and your total income is below $24,500.
That total income is the total of your taxable income, exempt Australian Government allowances, pensions and payments, target foreign income (IT4), reportable fringe benefits total, net financial investment loss (see question IT5), net rental property loss (see question IT6), and reportable superannuation contributions.
# 21 Deceased estate
For a deceased estate, apply all the above as if the deceased estate was an individual.
# 22 Foreign Resident with HELP or TSL
You are a foreign resident with a HELP or TSL debt and your repayment income plus any foreign-sourced income is more than around $14,000. You must lodge your tax return electronically.
So this is the long list of scenarios that would trigger a need to lodge a tax return for individuals.
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Disclaimer: Tax Talks does not provide specific financial or tax advice in this article. All information on this website is of a general nature only. It might no longer be up to date or correct. You should contact us directly or seek other accredited tax advice when considering whether the information is suitable to your circumstances.
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