Tax Free Threshold 2014

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 some people who earn less than $18,200 may no longer need to lodge a tax return to the Australian Tax Office.

tax free threshold - do you need to lodge a tax return?

Tax free threshold… Do you need to lodge a tax return?

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:

Example 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!

Example 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.

Example 3 – You earned less than $18,200 and paid no tax on your income

You might 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 example 3 apply to you? Don’t need to lodge a tax return this year? You still need to do something important…

Etax.com.au Non Lodgement Advice Service

Don’t need to lodge a tax return this year? That does not mean you can just forget about it – you can’t ignore the ATO.  You need to submit a non-lodgement advice instead.  This document explains to the ATO that you do not need to lodge this year and ensures they don’t list you as having an outstanding return which still needs to be lodged.

To help clients who need to submit non-lodgement advice this year, we launched the Etax.com.au non-lodgement advice service. And the best part – it’s free!

To take advantage of this service, simply register online at Etax.com.au and fill in your 2013 income and details. Our accountants will then match your details with ATO records and if you don’t need to lodge a tax return, we’ll submit a non-lodgement advice on your behalf, for free.

Simply click here to get started now! Remember if you don’t need to lodge a tax return, we’ll submit your non-lodgement advice for you, free of charge!