WHO NEEDS TO LODGE A TAX RETURN
At the end of the income year, each individual must determine whether or not they are required to lodge a tax return. In determining this, they
must consider their personal circumstances, such as:
1. INCOME EARNED
If an individual’s income is above the tax-free threshold, they will be required to lodge a tax return. For most individuals, the tax-free threshold is
$18,200.

2. ENTITLEMENTS TO CLAIM
An Individual who has either:
• had Pay as You Go (PAYG) tax withheld from wages or other payments or
• has paid PAYG instalments
will be required to lodge a tax return
3. OTHER OBLIGATIONS / ENTITLEMENTS
A person may be required to lodge a tax return due to other obligations, such as
• They were entitled to the private health insurance rebate but did not claim the correct entitlement as a premium reduction, and their spouse
(if they had one) is not claiming the rebate for them in their income tax return.
• They are liable to pay or receiving child support through the Child Support Agency (CSA), and their adjusted taxable income is above
$27,509 (for the 2023 income year) or they were not receiving a government pension or allowance during the whole of the income year.
• They are entitled to the government superannuation co-contribution.
4. BUSINESS INCOME
Every person carrying on a business or profession regardless of profit or loss is required to lodge a tax return. If a person has an Australian
Business Number (ABN) the ATO will assume they are carrying on a business.
5. FACTORS THAT MIGHT AFFECT FUTURE INCOME TAX YEARS
Where an individual’s circumstances in the current year may impact future year’s tax returns, they will be required to lodge a tax return, e.g.
• They have made a capital loss during the year or have a carried forward loss that can be claimed in the current year;
• They are entitled to special averaging provisions available to primary producers or special professionals.

6. REQUEST FROM THE ATO

If a person has been asked to lodge a tax return by the Commissioner of Taxation, they will be required to do so, even if there is no assessable
income to be declared.
Prior to the end of each tax year, the Commissioner of Taxation issues a Legislative Instrument calling for the lodgement of Income Tax
Returns for the year (Notice of Requirement to Lodge a Return for the Income Year Ended 30 June 2023). This specifies each person or entity
that is required to lodge a tax return. This is published on the Federal Register of Legislative Instruments and is available on the Australian
Taxation Office (ATO) website

The complete list of all individuals who are required to lodge a return in the 2023 year are set out below. As this information refers to topics
covered in later modules of the course, it is not expected that you remember all these details at this stage. It is recommended you refer back to
this list as you cover the relevant modules.
Taxpayers who must lodge a tax return include:
1. Most resident individuals whose total assessable income exceeds $18,200 for the 2023 income year.
However:
a) Persons who received certain Australian Government allowances will not need to lodge a tax return if they only had income from
this source or if their taxable income was less than $21,885.
b) Persons who received certain Australian Government pensions or who are entitled to an aged pension will not be required to lodge a
tax return if their rebate income is less than:
i) $32,280 if at any time during the year they were single, widowed or separated
ii) $31,280 if at any time during the year the person and their spouse had to live apart due to illness or the person or their
spouse was in a nursing home
iii) $28,975 if the person and their spouse lived together for the full year.
c) A person who was an Australian resident for only part of the year will be required to lodge a tax return if their taxable income
exceeds their adjusted tax-free threshold ($13,464 plus $4,736 / 12 x number of months or part months the person was an
Australian resident).
2. Every person who, during the year, was not an Australian resident for tax purposes and derived income (including capital gains) that is
taxable in Australia, other than franked dividends, interest and royalty income subject to withholding payments.
3. Every person carrying on a business or profession regardless of profit or loss. If a person has an Australian Business Number (ABN) the
ATO will assume they are carrying on a business and require a tax return to be lodged.
4. A person who has had tax withheld under the PAYG withholding system other than amounts withheld from:
a) franked or partially franked dividends where the amount of the dividends or distributions received and any franking credits totalled
less than $18,200
b) dividend, interest and royalty payments received by foreign residents
c) Departing Australia Superannuation Payments
d) payments made to persons participating in the Seasonal Labour Mobility Program or foreign residents participating in the Pacific
Island Labour Mobility Scheme
e) certain superannuation lump sum payments made to a person with a terminal medical condition.

5. A person who has a Reportable Fringe Benefits Amount (RFBA) or a Reportable Employer Superannuation Contribution (RESC) shown on
their Income Statement / PAYG Payment Summary, regardless of income.
6. A person who paid Pay As You Go Instalment Tax during the income year, irrespective of income.
7. A person who has made a loss (including a capital loss) during the income year or has a carried forward loss (including a capital loss),
which they can claim in the current year.
8. A person who was entitled to the private health insurance rebate but did not claim the correct entitlement as a premium reduction, and
their spouse (if they had one) is not claiming the rebate for them in their income tax return.
9. A person, 60 years old or older, who received an Australian superannuation lump sum that included an untaxed element or it is a
superannuation lump sum death benefit paid to a non-dependant.
10.A person, under 60 years old, who received an Australian superannuation lump sum that included a taxed element or an untaxed element or
it is a superannuation lump sum death benefit paid to a non-dependant.
11.A person who is liable to pay or is receiving child support through the Child Support Agency (CSA) unless their adjusted taxable income is
below $27,509 (for the 2023 income year) and they have received a government pension, allowance or payment for the whole period.
12.A person who has made personal contributions to a complying superannuation fund or retirement savings account (RSA) and is eligible to
receive a super co-contribution.
13.A person who has made concessional superannuation contributions exceeding their concessional (pre-tax) contributions cap.
14.A person who has made personal superannuation contributions exceeding their non-concessional (after-tax) contributions cap.
15.A person who was entitled to a distribution from a trust or had an interest in a partnership and the trust or partnership carried on a
business of primary production.
16.A person who is a special professional covered by the income averaging provisions. These provisions apply to authors of literary, dramatic,
musical or artistic works, inventors, performing artists and active sportspeople.

17.A person who was an Australian resident for tax purposes and had exempt foreign employment income and $1 or more of other income.
18.A person who derived assessable income from dividends and distributions and franking credits that was more than $18,200 (or $416 if
aged under 18 at 30 June).
19.A person who has been asked to submit a return by the Commissioner. A full tax return is required even if there is no assessable income to
report.
20.A person who is a minor (under 18 years old on 30 June) and whose income was more than $416 (excluding salary and wages or other
payments for work that was personally performed) or whose income from dividends or distributions and franking credits was more than
$416. A minor whose unearned income is less than $416 will still be required to lodge a tax return if they have had tax withheld.
21. Foreign residents with an accumulated Higher Education Loan Programme (HELP) debt, VET Student Loan or an accumulated Trade
Support Loan (TSL) (as of 1 June immediately preceding the income year) if their repayment income, and any foreign-sourced income, was
more than $12,090 for 2022-23. The return must also be lodged electronically.
22.A person who derived Australian sourced taxable income (excluding any superannuation remainder or employment termination remainder)
of $45,001 or more whilst they were on a working holiday visa (417 or 462 visa).
NOTE
An individual who only has rental income or jointly owned investment income will not be required to lodge a tax return unless:
• their taxable rental and investment income is more than $18,200
• a net rental and / or investment loss has been made
• they are in partnership, carrying on a business or
• they have had tax withheld under the PAYG withholding system
Even if a taxpayer is not required to submit a return for the current year but submitted a return for the previous year, the ATO requires that a
form be completed showing why a return is not necessary.