In this article, we will provide you with all the information you need to file tax returns. From eligibility criteria to the procedure and guidelines.
What are Tax returns?
A tax return is basically a form that is filled with the help of your tax agent which informs the Government of Australia about how much money you earn. This form is also handy in telling them about any deductions that you are claiming.
The Australian Government uses this information to verify if you have paid full taxes. They also make sure that you don’t pay more taxes than you are due.
With the help of your tax returns, the Government can check if you need to pay the medical levy (Australia’s public health system).
In some cases, like in the low and middle-income offsets, you can get LMITO (low and middle-income tax offsets). It is important to know that LMITO is not a bonus. But it can reduce the amount of taxes you have to pay to zero.
What is a Tax refund?
A tax refund is when you get part of your paid tax money back. This is because you have paid more taxes to the Government than you were due.
What are the eligibility criteria to file tax returns in Australia?
If you fall under any of the following guidelines, then you are eligible to file a tax return in Australia.
Guideline 1
If you held the Australian nationality during the year 2020-2022 and
- Withheld tax from payments given to you. This excludes income from mining.
- Used the Pay As You Go instalment or withholding system.
Guideline 2
You must file a tax return if you benefited from the offset of pensioners and seniors and the total amount of your taxable income exceeded:
- $32,279 and you were single, separated or widowed during the year.
- $31,279 if any of you or your spouse lived apart or in a nursing home due to illness.
- $28,974 if you lived with your partner for the whole year.
Guideline 3
You did not receive the pensioners and seniors tax offset, but you benefited from Question 5 and had a taxable income of more than $21,884.
Contact Agile Accounting Plus to check if you are eligible to file tax returns.
Guideline 4
You are eligible to file tax returns if you did not benefit from pensioners and seniors tax and didn’t receive any payment under Question 5 and Question 6. But your income was more than
- $18,200 if for the full year you were an Australian resident for tax purposes.
- $416 and you were below 18 on 30 June 2021. This is applicable even if your income was not salary or wages.
Also,
- You must lodge a tax return if you are a foreign resident and had a taxable income in Australia and withheld non-resident tax on it.
- File a tax return if your income was more than your part-year tax-free threshold amount and your status as an Australian resident changed.
In addition to these guidelines, there are some other reasons as well that make you eligible to file tax returns. You need to file a tax return if these apply to you.
- You received fringe benefits (like a company car or private healthcare) and mentioned them on your Pay as you go payment summary or income statement.
- (This condition applies to both foreign employment and individual non-businesspersons.)
- You were entitled to claim your health insurance rebate, but you did not claim your entitlement as a premium reduction and your spouse didn’t mention them in her tax return as well.
- You received employer superannuation on your individual non-business, foreign employment or business and personal services income. If these amounts were mentioned on your PAYG or income statement, then you must file a tax return.
- You ran a business.
- You incurred losses like capital loss or non-capital loss. You can also claim a loss you made in the previous year.
- If you are above 60 and received superannuation that had some untaxed elements. Or if you received death benefits as a non-dependent.
- If you had interests in any partnership or receive a distribution from a trust. You will have to pay a tax return even if you run a business of primary production.
- You are eligible to file tax returns if you had Australian residency for taxation and had an exempted foreign employment income and received income equalling $1 or more.
- As a specialist professional like an author, actor, musician, artist, inventor, production associate or sportsman you will be covered by income averaging provisions.
- You are eligible to file tax returns if you received income from dividends and distributions that exceed $18,200. If you were below 18 on 30th June, then the amount of income to be taxed is $416.
- Lodge a tax return if you had attached franking credits or withheld amounts because you did not quote your tax file No. or the ABN to the investor.
- File a tax return if you received Australian income exceeding $45,000 while you were abroad on a holiday visa. This does not include income from superannuation remainder and employment termination remainder.
- If you made contributions to a superannuation fund or retirement savings and as a result will be eligible for co-contributions. This does not include amounts claimed as a deduction.
- File tax returns if your non-concessional contribution to super exceeds the non-concessional contributions cap.
- Similarly, if your concessional contributions exceed the concessional contributions cap, file the tax returns.
- You are eligible to file tax returns if you were a liable parent under child support assessment.
However, if the following conditions apply then you won’t have to file tax returns.
- You received Australian Government allowances payments or pensions for 1/7/20 – 30/6/21.
- You won’t have to file tax returns if the total of the following payments is less than $26,319.
- Taxable income except for the amount from First home super saver.
- Exempted Governmental allowances, payments and pensions.
- Total fringe benefits.
- Target foreign income.
- Superannuation contributions.
- Rental property net loss.
- Financial investment net loss.
Additional Guidelines
- If you are managing the estate of a person who died during 2021-2022, then apply the above guidelines on their behalf.
- If you were a foreign student during 2021-2022 and had these accumulated loans on 1 June 2019, then lodge a tax return if the total of your payment income and any foreign-sourced income was more than $11,655.
You can also check these useful links for more information.
Agile Accounting Plus is always here to help you with all taxation and accountancy matters. Contact Us
