Low income earners may need to lodge
If your client’s taxable income is under the tax-free threshold, they may still need to lodge a tax return. Common reasons for this include if they either:
- had pay as you go (PAYG) withheld from payments received during the year
- had a reportable fringe benefits amount on their income statement or PAYG payment summary
- had reportable employer superannuation contributions on their income statement or PAYG payment summary
- made a loss or can claim a loss made in a previous year
- were an Australian resident for tax purposes and had exempt foreign employment income and $1 or more of other income
- were entitled to the private health insurance rebate but did not claim their correct entitlement as a premium reduction
- were a liable or recipient parent under a child support assessment, unless both of the following applied
- they received one or more Australian Government allowances, pensions or payments (listed on the Individual tax return instructions 2020 at question 5 or question 6) for the whole year
- their income was less than $25,575.
