Tax Return For Low Income Earners

Do low income earners need to lodge a tax return?

There are misconceptions about low income earners and tax returns. If you’re a low income earner and your taxable income is under the tax-free threshold that doesn’t necessarily mean you’re off the hook.

Here are a few common reasons why you might still be required to lodge a return:

• If you had pay as you go (PAYG) withheld from payments received during the year.
• If you had a reportable fringe benefits amount on your income statement or PAYG payment summary.
• If you had reportable employer superannuation contributions on your income statement or PAYG payment summary.
• If you made a loss, or can claim a loss made in a previous year.
• If you are an Australian resident for tax purposes and had exempt foreign employment income and $1 or more of other income.
• If you’re entitled to the private health insurance rebate but did not claim correct entitlement as a premium reduction.
• If you were a liable or recipient parent under a child support assessment.
  • (There are some exceptions to this one, such as receiving government allowances or pensions, or if your income was less than $25,038). 

We sound like a bit of a broken record, but if you’re not sure PLEASE check your tax obligations with a registered tax agent. Always better to be safe than sorry, and avoid penalties further down the line.

Need help finding a tax agent that suits your needs? Get in touch! 

You can also read more on the ATO website.

This is general advice only and has not been prepared with your situation and needs in mind. For individual and personalised advice, we highly recommend that you seek out proper professional advice from your accountant.