Should I lodge while my income statement says Not tax ready?

The ATO recommends waiting until the employer finalises the information and the income statement is marked Tax ready.

Tax Return for Nepali Casual Workers Australia

Casual worker tax: the quick answer

Income from casual employment is salary and wages and generally needs to be included in your Australian tax return. Your employer normally withholds PAYG tax from your pay, reports employment information through Single Touch Payroll and, where eligible, has super obligations.

Casual income is taxable incomeMoney earned from casual work is generally declared as salary and wages.

Multiple jobs matterYour final tax position is based on combined taxable income, not each job in isolation.

Tax-free thresholdAustralian residents for tax purposes are generally entitled to the $18,200 tax-free threshold.

Super is separate from taxEligible casual employees can still have employer super entitlements.

Does a casual worker need to pay tax in Australia?

Casual employment income is not automatically tax-free. The ATO treats money earned from casual work as salary and wages. Your final outcome depends on total taxable income, tax residency, PAYG tax withheld, eligible deductions and other relevant obligations.

Key point: being casual, part-time or full-time does not by itself determine whether you pay income tax. Your overall tax circumstances do.

How is tax taken from casual wages?

Employers generally withhold PAYG amounts from salary and wages and report employment payments to the ATO. Specific withholding rules and tax tables can apply to employees paid on a daily or casual basis.

The amount withheld during the year is not necessarily your final tax bill. Your tax return brings together income, tax already withheld and eligible deductions to work out the final position.

Can a casual worker claim the tax-free threshold?

If you are an Australian resident for tax purposes, you are generally entitled to the $18,200 tax-free threshold. If you have more than one employer at the same time, the ATO generally recommends claiming the tax-free threshold from only one employer. Claiming it from multiple employers can result in too little tax being withheld when your combined income is considered.

Example: two casual jobs

Sita works casually at a café and also has weekend shifts in retail. Each employer sees only what it pays her. At tax time, income from both jobs is brought together. If too little tax was withheld across the two jobs, she may have an amount to pay; if more than required was withheld, she may receive a refund, subject to her complete tax position.

Does a second casual job get taxed at a higher rate?

A second job does not create a special higher final income-tax rate simply because it is your second job. The confusion often comes from PAYG withholding. When you do not claim the tax-free threshold from the second payer, more tax may be withheld from that pay. Your annual tax return calculates tax using your total taxable income and applicable rules.

Casual loading, weekend rates and penalty rates

Casual loading, weekend penalty rates, public-holiday rates, overtime and other employment payments can increase your gross employment income. Calling a payment “casual loading” or a “penalty rate” does not make it tax-free. These amounts are generally part of employment income reported by your employer.

Night shifts and public-holiday work

Extra pay for nights, weekends or public holidays is generally included with salary and wages. A larger PAYG withholding amount on a larger pay packet does not necessarily mean the extra shift has a separate special tax rate.

See our Night Shift & Weekend Work Tax Guide for more detail.

What should you check on your income statement?

If your employer reports through Single Touch Payroll, your employment information is available through ATO online services linked to myGov. Your income statement can show salary and wages, tax withheld and super information.

After the financial year, wait for the statement to show Tax ready before relying on it to lodge. If you use unfinalised information, your employer may later change the figures and you may need to amend your return.

Multiple employers? Make sure income from every employer is included, including short-term jobs you finished earlier in the financial year.

Can casual workers claim tax deductions?

Casual employees can claim eligible work-related deductions under the same general principles applying to other employees. Broadly, you must incur the expense yourself, it must have the required connection with earning your employment income, it must not be private or domestic, and relevant substantiation rules must be satisfied.

If an expense is partly private and partly work-related, only the eligible work-related portion can be claimed.

Uniforms, protective clothing and laundry

Some casual workers may be able to claim eligible occupation-specific clothing, protective clothing or compulsory/registered uniforms, together with eligible cleaning costs. Ordinary conventional clothing is generally private even if you wear it only at work or your employer asks for a particular colour or style.

Phone and internet expenses

You may be able to claim the work-related portion of phone or internet expenses where you incur the cost and use the service in performing your employment duties. Private use must be excluded and you need a reasonable basis for calculating work use.

Simply keeping a personal phone available in case an employer offers you a shift does not automatically make the entire bill deductible.

Car and travel expenses

Ordinary travel between home and your regular workplace is generally private. Working an unusual shift, finishing late or having limited public transport does not by itself convert ordinary commuting into deductible work travel.

Different rules can apply to eligible travel undertaken in performing your duties or directly between separate workplaces. Keep appropriate records where genuine work-related travel applies.

Tools and equipment

If you buy tools or equipment genuinely required for your current employment duties and are not reimbursed, an eligible work-related deduction may be available. An employee asset costing $300 or less may qualify for an immediate deduction where all relevant conditions are satisfied. More expensive depreciating assets are generally claimed through decline in value, with private use apportioned.

Training and self-education

Training or self-education can be deductible where there is the required connection with your current income-earning employment. Costs incurred merely to qualify for a new occupation or obtain a new job are generally different.

Example:

A casual aged-care worker pays for eligible training that directly maintains or improves skills used in current duties. Depending on the course and circumstances, a deduction may be available. A course undertaken only to qualify for an unrelated new career generally would not have the same connection.

Union and professional association fees

Annual union fees and certain professional association subscriptions connected with your employment may be deductible. Keep records of amounts actually paid.

Allowances vs reimbursements

An allowance and reimbursement are not the same. An allowance may appear as employment income, but receiving one does not automatically create an equal deduction. You still need to satisfy the deduction rules for expenses incurred.

If your employer reimburses you for an expense, you generally cannot also claim that same expense as your own deduction.

Quick tax treatment guide

Expense or payment	General treatment	Important check
Casual wages	Generally assessable employment income	Check all employers are included.
Casual loading / penalty rates	Generally employment income	Check your income statement.
Ordinary home-to-work travel	Generally private	Unusual hours alone do not normally change this.
Eligible work travel	May be deductible	Work-related travel rules and records apply.
Conventional clothing	Generally private	Wearing it only for work does not make it deductible.
Eligible uniform / protective clothing	May be deductible	Specific clothing rules apply.
Work-related phone use	May be deductible	Claim eligible work use only.
Tools / equipment	May be deductible	Must relate to current work; depreciation rules may apply.
Employer reimbursement	No duplicate deduction	You generally cannot claim what was reimbursed.

What about super for casual workers?

Casual status does not automatically exclude an employee from super. Where the super guarantee rules apply, employer super obligations can apply to eligible casual employees.

From 1 July 2026, Payday Super changed the timing of super guarantee payments. The super guarantee rate remains 12%, while employers generally need to make contributions on payday and have them received by the employee's super fund within the required timeframe, subject to applicable exceptions.

Read our Superannuation for Nepali Workers in Australia 2026 Guide.

What if you changed casual jobs during the year?

Changing employers does not make earlier income disappear. Income from each employer for the financial year needs to be considered. Check that each relevant income statement is finalised and that your total employment income is complete.

What if too much tax was withheld?

PAYG withholding is tax paid progressively during the year. If more tax was withheld than your final liability after assessment, the difference may contribute to a refund. A refund is not guaranteed and depends on your complete tax position.

What if not enough tax was withheld?

You can end up with a tax bill where withholding across your jobs was not enough for your total taxable income and circumstances. This can occur with multiple income sources or where the tax-free threshold was claimed from more than one employer. A tax bill does not necessarily mean an employer made an error.

Do cash casual jobs need to be declared?

Being paid in cash does not make employment income tax-free. Cash salary and wages generally still need to be declared. Keep appropriate records and make sure your return is complete.

Casual employee or ABN contractor?

Working casually as an employee is different from operating as a sole trader or contractor through an ABN. The label used by a business does not by itself determine the legal or tax character of the relationship.

If you genuinely earn business income under an ABN, separate obligations can arise for record keeping, deductions, PAYG instalments and potentially GST.

See our TFN vs ABN Guide and GST Registration Guide.

Records casual workers should keep

payslips and employment records
income statements and any payment summaries
receipts for eligible work-related expenses
records showing work-related phone or internet use
car or travel records where an eligible claim applies
uniform, protective clothing and eligible laundry records
tools and equipment purchase records
training, union or professional-fee receipts
records of employer allowances or reimbursements.

Common tax mistakes to avoid

assuming casual income is tax-free
claiming the tax-free threshold from multiple employers without considering the combined result
forgetting income from a short-term or previous employer
lodging before an income statement is Tax ready
claiming ordinary commuting because a shift ended late
claiming normal clothing simply because it was worn at work
claiming 100% of a mixed-use phone or internet bill
claiming expenses an employer reimbursed
assuming an allowance automatically creates an equal deduction
claiming expenses without the required connection to current employment.

2026 tax return checklist for casual workers

Check every employer and income source.
Wait for relevant income statements to become Tax ready.
Review PAYG tax withheld across all jobs.
Check whether you claimed the tax-free threshold appropriately.
Review eligible work-related expenses for each job.
Separate private and work-related use.
Check allowances and reimbursements.
Review super contributions and employer reporting.
Keep receipts and calculation records.
Get professional advice where employment, ABN or residency circumstances are unclear.

For Nepali casual workers: casual employment can change from week to week, but your tax return looks at the full financial year. Keeping records from every employer makes tax time much easier.

Frequently asked questions

Casual wages are generally taxable employment income. The final outcome depends on total taxable income, tax withheld, deductions, residency and other circumstances.

An Australian resident for tax purposes is generally entitled to the $18,200 tax-free threshold. With multiple employers, the ATO generally recommends claiming it from only one employer.

A second job does not have a separate higher final tax rate simply because it is a second job. PAYG withholding may differ, while final tax is calculated using total taxable income and applicable rules.

They are generally part of employment income. Extra pay does not become tax-free merely because it is a penalty rate or loading.

Yes, where the expense satisfies the relevant work-related deduction and record-keeping rules.

Casual status does not automatically remove super guarantee entitlements. Where the rules apply, eligible casual employees can receive employer super.

Generally yes. Salary and wages from short-term casual employment are still employment income and should be included where required.

The ATO recommends waiting until your employer finalises the information and the income statement is marked Tax ready.

Need help with your casual-work tax return?

Hamro Accountant can help you review multiple jobs, PAYG withholding, deductions and other Australian tax-return obligations.

Contact Hamro Accountant →

General information only: This article provides general Australian tax information and is not personal tax, financial or legal advice. Your tax treatment depends on your individual circumstances, tax residency, employment arrangements and applicable rules. Check current ATO guidance or obtain advice from a registered tax professional before acting.