Tax Free Threshold 2013:
Do I need to do a tax return?
As part of the government’s household assistance package, starting 1 July 2012, the tax-free threshold was increased from $6,000 to $18,200.
This means that people who earn less than $18,200 may no longer need to lodge a tax return to the Australian Tax Office.
Below, we discuss three common scenarios and whether or not you need to lodge a tax return. Plus, we’ll tell you about the new and free Etax.com.au Non Lodgement Advice Service:
Scenario 1 – You earned more than $18,200
You should lodge a tax return
If during the past financial year your taxable income was more than $18,200 you are required to lodge a tax return.
Fit into this category and ready to start now? Click here to get going and you could be done is 15 minutes!
Scenario 2 – You earned less than $18,200, but paid tax on your income
You should lodge a tax return.
Even though you earned under the new tax free threshold, as you paid tax on your income during the year, you should lodge a tax return.
In this situation it’s likely you may get all of the tax you paid throughout the year back on your tax return.
Want that money in your account as soon as possible? Click here to start your 2013 tax return.
Scenario 3 – You earned less than $18,200 and paid no tax on your income
You may not need to lodge a tax return.
If you earned less than $18,200 AND you didn’t pay any tax on this income, then you may not be required to lodge a tax return this year.
In most cases if you fall into scenario 3, then you won't need to lodge a return. However you may still need to lodge if:
- You are entitled to the private health insurance rebate
- You had a reportable fringe benefits amount on your PAYG Summary
- You had a reportable employer superannuation contribution on your PAYG Summary
- You made a loss or can claim a loss made in a previous year
- You were an Australian resident for tax purposes and you had exempt foreign employment income plus $1 or more of other income
Does scenario 3 apply to you? Don't need to lodge a tax return this year? You still need to tell the ATO something...