Lodging a Tax Return

Do I need to lodge a tax return in Australia?

If you meet the below criteria, you will need to lodge a tax return:

• Tax was deducted from any payments (such as wages) made to you during the financial year.
• You are an Australian resident and your taxable income was more than the tax-free threshold.
• You are a foreign resident and you earned more than $1 in Australia during the financial year.
• You are leaving Australia permanently or for more than one financial year.
• You wish to claim any tax deductions.

You don’t need to lodge a tax return if:

• You are a foreign resident and your only Australian-sourced income was interest, dividends or royalties from which non-resident withholding tax has been correctly withheld
• You are a working holiday maker (417 or 462 visa holder) and your taxable income for the year is less than $37,001.

To lodge an Income Tax return you will need a Tax File Number (TFN). This is a unique number issued to individuals that are used for ID and record keeping purposes and without one you will be at a serious disadvantage. For more information, please head to our blog about Applying for a TFN

Income Tax rates

Temporary & Permanent Worker tax rates 2020–21
Taxable income Tax on this income
0 – $18,200 Nil
$18,201 – $37,000 19c for each $1 over $18,200
$37,001 – $90,000 $3,572 plus 32.5c for each $1 over $37,000
$90,001 – $180,000 $20,797 plus 37c for each $1 over $90,000
$180,001 and over $54,097 plus 45c for each $1 over $180,000

 

Working Holiday Maker tax rates 2020–21
Taxable income Tax on this income
$0 – $37,000 15c for each $1
$37,001 – $90,000 $5,550 plus 32.5c for each $1 over $37,000
$90,001 – $180,000 $22,775 plus 37c for each $1 over $90,000
$180,001 and over $56,075 plus 45c for each $1 over $180,000

 

Deductions you can claim while completing your tax return
When completing your tax return, you’re entitled to claim deductions for some expenses, most of which are directly related to earning your income.

Work-related expenses
To claim a work-related deduction:

• you must have spent the money yourself and weren’t reimbursed
• it must directly relate to earning your income
• you must have a record to prove it.

If the expense was for both work and private purposes, you can only claim a deduction for the work-related portion. Work expenses reimbursed to you by your employer are not deductible.

We can seek information from your employer if we think you have claimed a deduction for an expense that you have already been reimbursed for.

You may be able to claim a deduction for expenses that directly relate to your work, including:

Vehicle and travel expenses – including travel between work and home
Clothing, laundry and dry-cleaning expenses
Home office expenses
Mobile phone, internet and home phone expense
Overtime meals
Self-education expenses
Tools, equipment and other equipment
Other work-related deductions.

For more information about what you can claim on your tax return and a 457 Visa or TSS Visa holder go to Tax Tips