Do I Need To Lodge A Tax Return?

Whether you need to lodge a tax return depends on several factors, such as the amount of your income, your income component, your business structure, etc.

In general, if you are not running a business and you earn more than the tax-free threshold ($18,200 at current), you are required to lodge an individual tax return.

If you are running a business, you must lodge a tax return (company tax return, trust tax return, partnership tax return or individual tax return for sole trader), even if your business hasn’t earnt any income.

Companies & Trust Tax Returns

Do I need to lodge a company tax return?

In general, if the company has operated business in the financial year, it is required to lodge a tax return, irrespective of its income is profit or loss.

Below are the most common scenarios:

What about trust tax returns?

If the Trust has done business in the financial year, it is required to lodge a tax return, regardless of making profit or loss.

 
What about partnerships?

Although a partnership is not itself taxable, every active partnership is required to lodge a Partnership tax return each year, even if it is not making profit.

 
What is the due date of these tax returns?

If you lodge the tax return yourself, it is due by 31 October. If you lodge through a registered tax return, you will get an extension – normally 15 May of the following year but can vary in some situations.

Individuals & Sole Traders Tax Returns

Do I need to lodge an individual tax return?

Generally, if you earn more than the tax-free threshold ($18,200 at current), you are required to lodge a tax return.

If you earn less than the tax-free threshold, you might still need to lodge a tax return if you:

–          Have paid tax or had tax withheld on your behalf during the financial year

–          Have received franking credit during the financial year

–          Made a loss or you can claim a loss from a previous year

–          Carried on a business during the financial year (see blow ‘sole trader’)

–          Are quired to lodge a tax return for Centrelink purposes

If you are not required to lodge a tax return, you will need to notify the ATO that lodgement is not necessary.

What about sole traders?

As a sole trader, your tax return is lodged in your own name (supplementary section of the individual tax return). There is no threshold for business income, you need to lodge an income tax return even if you only earn $1 or make a loss.

When do I need to lodge the tax return?

If you lodge the tax return yourself, it is due by 31 October. If you lodge through a registered tax return, you will get an extension – normally 15 May of the following year but can vary in some situations.

Ways to lodge your tax return

·       Using ATO approved software:

You can lodge your tax return via MyGov, or standard business reporting (SBR) enabled software for Company, Trust, and Partnership.

·       By paper:

You can download the paper return form from the ATO website and lodge them by post.

·       With a registered tax agent:

Find a registered tax agent and pass the bother to them!