Do You Need to Lodge a Return If You Earned Less Than The Tax Free Threshold?
Tax time can bring a lot of confusion, especially if you’re not sure whether you need to lodge a return. Currently, if you earned $18,200 or less in the past financial year, and no tax was withheld from your income, you might not need to lodge a return at all. In that case, you would simply send a Non-Lodgement Advice (NLA) form to the Australian Taxation Office (ATO). Of course, it’s always worth checking in with a professional to avoid any unseen mistakes at tax time – speaking with an experienced accountant in Ringwood can make the whole process much easier and help you avoid any surprises later on.
What Is a Non-Lodgement Advice (NLA)?
An NLA is an official notification you send to the ATO to let them know you don’t need to lodge a tax return for the financial year. It’s a quick and simple way to stay on the right side of your tax obligations without lodging an unnecessary return. If you submit an NLA, you also prevent the ATO from marking your file as having an overdue return, which can cause issues down the track if you don’t clarify your situation.
Do I Need to Lodge a Tax Return?
Even if you earned less than $18,200, there are times when you still must lodge a tax return. The most common situation is if you had any tax withheld from your income, for example, if you worked casually or part-time and your employer deducted tax from your pay. In that case, you should lodge a return to claim a refund. Other reasons you might need to lodge a return include receiving Centrelink payments, earning income through investments, or having tax deductions you need to claim.
Do I Still Need to Lodge a Return – If I Didn’t Work?
If you didn’t earn any income during the financial year, you typically won’t lodge a standard tax return, but you also won’t be able to simply ignore it. You’re still expected to submit an NLA to the ATO to explain why you haven’t lodged a return. In some cases, particularly if you received government benefits or other taxable payments, you may still be required to lodge a return. It’s always worth double-checking with your accountant to avoid any issues later.
Do I Need an Accountant to Lodge My Return?
While it might be tempting to handle your tax matters yourself, even low-income earners can benefit from professional advice. An accountant can review your situation carefully and ensure you meet all your obligations. They can also spot opportunities you might have missed, for example, claiming deductions, getting refunds, or ensuring your NLA is lodged correctly. Tax rules change often, and a quick chat with a professional can give you peace of mind and possibly even put more money in your pocket.
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Taking the Right Steps for a Smooth Tax Season
Even if your income is low, it’s important to understand your tax obligations and make sure everything is squared away with the ATO. Whether you need to lodge a return or simply submit an NLA, staying organised now can save you a lot of hassle down the road. Talking with an accountant ensures you stay on track, meet all your responsibilities, and can look forward to a stress-free tax season.