Quick answer: Do you need to lodge if you earned less than $18,200?
Not always, but you cannot decide based on the $18,200 figure alone. For many full-year Australian tax residents with income below the tax-free threshold and no tax withheld, a tax return may not be required.
However, you may still need to lodge because of tax withheld, foreign-resident rules, certain income sources or other circumstances.
This is a common question among Nepali international students, casual workers and part-time employees in Australia.
Some people work only a few shifts each week. Others start their first job late in the financial year or stop working while studying.
Their income may be much lower than a full-time employee's, but low income alone does not settle the lodgment question.
1. What is the $18,200 tax-free threshold?
The Australian resident tax-free threshold is generally $18,200 for a person who is an Australian resident for tax purposes for the full income year.
This means that, under the ordinary resident income-tax rates, the first $18,200 of taxable income is not subject to income tax.
However, eligibility for the threshold depends on tax residency and other relevant circumstances.
2. Does earning below $18,200 mean you don't need to lodge?
Not necessarily.
For many full-year Australian resident individuals, a tax return may not be required when income is below the relevant threshold and no tax has been withheld.
However, other circumstances may still require lodgment.
- Tax was withheld from your wages or other payments.
- You were a foreign resident for tax purposes.
- You had certain business or investment activities.
- You had other income or reporting obligations.
- You were an Australian resident for only part of the year.
- Another ATO lodgment requirement applies to you.
The ATO provides a guide to working out whether you need to lodge a tax return .
3. What if your employer deducted tax?
If tax was withheld from payments made to you during the income year, this is generally a reason you must lodge a tax return.
PAYG withholding is the amount your employer deducts from wages and pays to the ATO.
You may see this information on your payslip and income statement.
Suman is an Australian resident for tax purposes for the full income year.
He earns $11,500 from part-time employment and has $650 of PAYG tax withheld.
Because tax was withheld, he generally needs to lodge a tax return.
If his overall tax liability is zero, he may receive a refund of the amount withheld, subject to his complete circumstances.
4. Can you receive a tax refund even with very low income?
Yes, it is possible.
A tax refund can arise when the amount of tax already withheld exceeds your final assessed tax liability.
Your final result depends on total taxable income, tax residency, applicable offsets and other factors.
5. What if you only worked for a few months?
Many Nepali students start working partway through the financial year.
For example, you may arrive in Australia in February and start a casual job in March.
Your total income for the income year may be low, but you should still check whether tax was withheld and whether you need to lodge.
6. What about Nepali international students?
Being an international student does not automatically make you a foreign resident for Australian tax purposes.
Australian tax residency is determined under tax rules and depends on your individual circumstances.
Some international students may be Australian residents for tax purposes, while others may have a different residency status.
Your tax residency can affect the applicable tax rates, tax-free threshold and lodgment requirements.
Related reading: Tax Return Guide for International Students in Australia .
7. What if you are a foreign resident for tax purposes?
Foreign residents generally do not receive the ordinary $18,200 Australian resident tax-free threshold.
A foreign resident may be required to lodge a return even when Australian taxable income is very low.
The ATO's lodgment rules include circumstances where a foreign resident has Australian taxable income that has not been subject to final non-resident withholding tax.
8. What if you are a casual worker?
Casual workers often have irregular earnings.
You might earn more during holidays and much less during university semesters.
Your lodgment obligation depends on the relevant income-year circumstances, not simply on whether you worked full-time, part-time or casually.
Casual workers
Review annual income and tax withheld.
Part-time employees
Check employer income statements and PAYG.
Students
Confirm tax residency and lodgment requirements.
9. What if you had two or more jobs?
If you worked at multiple workplaces, review income and tax withheld from all relevant employers.
A low income from one job does not mean you should ignore income from another job.
Anisha earns $7,000 at a café and $6,500 at a retail store.
Her combined employment income is $13,500.
She should review the PAYG withholding from both employers and her complete circumstances before deciding whether she needs to lodge.
Read: Tax Return With Multiple Jobs in Australia .
10. Does bank interest count towards your income?
Bank interest is another type of income that may need to be considered when determining your Australian tax position.
For an Australian resident for tax purposes, ordinary Australian bank interest is generally assessable income.
Even if your wages are low, you should review interest and any other income sources.
Read: Bank Interest Tax in Australia for Nepali Workers & Students .
11. What if you worked under an ABN?
Income earned from operating a business as a sole trader can create different reporting obligations from ordinary employment income.
If you worked under an ABN, you should not decide your lodgment requirement solely by comparing your income with $18,200.
Consider business income, allowable expenses, other activities and the relevant ATO rules.
12. What is a non-lodgment advice?
If you are not required to lodge an income tax return, you may still need to tell the ATO that you do not need to lodge for that income year.
This is generally done by submitting a non-lodgment advice.
A non-lodgment advice informs the ATO that you are not required to lodge a tax return for the relevant year.
It is not a replacement for a tax return when you are actually required to lodge.
13. How can you submit a non-lodgment advice?
The ATO provides options for notifying it that you do not need to lodge a return.
- Confirm that you are genuinely not required to lodge for the year.
- Access ATO online services through myGov, where available.
- Follow the ATO process for submitting a non-lodgment advice.
- Keep confirmation for your records.
If you cannot use the online service, check the ATO's available alternative methods.
14. How do you check your income and tax withheld?
Your employer generally reports income and withholding information through Single Touch Payroll where applicable.
You can usually review your income statement through ATO online services linked to myGov.
- Check each employer's income statement.
- Review total gross payments.
- Check tax withheld.
- Compare figures with your payslips.
- Review any other relevant income.
If your income statement has not been marked tax ready, check whether your employer has finalised its reporting.
Read: What If Your Income Statement Is Not Tax Ready? .
15. Low-income tax return examples
Ramesh is a full-year Australian resident for tax purposes.
He earns $9,000 from employment, has no tax withheld and has no other circumstances requiring lodgment.
He may not need to lodge a tax return, but should check whether he needs to submit a non-lodgment advice.
Priya is a full-year Australian resident for tax purposes.
She earns $14,000 and has $800 of PAYG tax withheld.
Because tax was withheld, she generally needs to lodge a return.
If her final assessed income tax liability is zero, she may receive the withheld amount back, subject to her circumstances.
A person is a foreign resident for Australian tax purposes and earns taxable Australian income.
The ordinary Australian resident $18,200 tax-free threshold generally does not apply.
The person must check the foreign-resident lodgment rules rather than relying on the Australian resident threshold.
Low-income tax return: Situations at a glance
| Situation | General consideration | What to do |
|---|---|---|
| Full-year resident, below $18,200, no tax withheld | May not need to lodge if no other requirements apply | Check non-lodgment advice. |
| Below $18,200 with PAYG withheld | Generally required to lodge | Check potential refund. |
| Foreign resident | Different rules and tax rates | Check foreign-resident requirements. |
| Part-year Australian resident | Part-year threshold may apply | Review residency dates. |
| Two or more jobs | Consider combined income and withholding | Review every income statement. |
| Bank interest | May be assessable income | Check bank records. |
| Sole trader / ABN activity | Business lodgment rules may apply | Review business circumstances. |
| No return required | ATO may still expect notification | Consider non-lodgment advice. |
16. Common mistakes to avoid
- Assuming income below $18,200 always means no return. Other lodgment requirements can still apply.
- Ignoring PAYG tax withheld. Check your income statement before deciding not to lodge.
- Assuming a student visa determines tax residency. Tax residency is assessed separately.
- Forgetting a second job. Review all relevant income.
- Ignoring bank interest. Consider income beyond wages.
- Applying the full resident threshold automatically. Part-year and foreign-resident rules may differ.
- Confusing no tax payable with no lodgment obligation. These are different questions.
- Forgetting non-lodgment advice. The ATO may still expect a notification.
17. Tax-time checklist for low-income workers and students
- Confirm the relevant financial year.
- Check your Australian tax residency.
- Review income from all employers.
- Check your PAYG withholding.
- Review bank interest and other income.
- Consider business or ABN activities.
- Check whether part-year residency applies.
- Review the ATO lodgment requirements.
- Check if you may be entitled to a refund.
- Confirm whether a return must be lodged.
- If not, check whether non-lodgment advice is required.
- Keep income and withholding records.
Related Hamro Accountant tax guides
Frequently asked questions
Do I need to lodge if I earned less than $18,200?
Not necessarily. Many full-year Australian residents with income below the tax-free threshold and no tax withheld may not need to lodge, provided no other lodgment requirements apply.
What if my employer deducted tax?
If tax was withheld from payments made to you, you generally need to lodge a tax return.
Can I receive a refund if I earned only $10,000?
A refund may be possible if tax was withheld and the amount exceeds your final tax liability. Your circumstances determine the actual result.
Do international students get the $18,200 threshold?
Eligibility depends on Australian tax residency and other circumstances. A student visa does not automatically determine tax residency.
Do foreign residents receive the $18,200 tax-free threshold?
Foreign residents generally do not receive the ordinary Australian resident tax-free threshold. Different rates and lodgment rules can apply.
What if I only worked for three months?
Check total income, tax withheld and tax residency. Part-year residency may also affect the tax-free threshold.
What is a non-lodgment advice?
It is a notification to the ATO that you are not required to lodge an income tax return for a particular year.
Do I need to submit non-lodgment advice every year?
If you are not required to lodge for a particular income year, check whether the ATO expects a non-lodgment advice for that year.
Does bank interest count towards my income?
Australian bank interest is generally assessable for Australian residents for tax purposes. Review it along with your other income.
What if I had two jobs but earned very little?
Review combined income and tax withheld from both jobs. A low amount from one employer does not settle the lodgment question.
Not sure whether you need to lodge a tax return?
Hamro Accountant can help you review your income, tax withheld, residency and lodgment requirements before tax time.
Official ATO resources
Disclaimer: This article provides general Australian taxation information only and is not personal tax, financial or legal advice. Tax-return lodgment requirements depend on the relevant income year, tax residency, withholding, income sources and individual circumstances. Review the current ATO requirements or obtain advice appropriate to your situation.