I earned lower than the tax free threshold. Do I really need to lodge an income tax return?

There are a number of circumstances under which you will still need to lodge an income tax return with the ATO, even if you did earn under the tax free threshold ( currently $18,200 ).

Some of these include:

*If you were employed and your employer withheld tax from income that you earned.

*If you ran a sole trader business.

*If you received an Australian Government taxable allowance / payment and your taxable income was greater than $20,542

Circumstances under which you may not be required to lodge a tax return include:

*If you were employed and your employer did not withhold tax from income that you earned.

*If you operated as a sole trader and your activities are considered as a hobby.

*If you received an Australian Government taxable allowance / payment and your taxable income was less than $20,542

(If you are not required to lodge a tax return it is still important that a “return not necessary” form is lodged for that financial year. Please contact us to organise lodgment of this form with the ATO on your behalf).

There are a number of other situations / circumstances under which you may or may not be required to lodge a personal income tax return. For more information you can visit this handy ATO decision tool.

 

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