Tax Time: Why You Might Still Need to Lodge a Tax Return

Tax time can be a stressful period for many Australians, with the pressure of getting paperwork organised to avoid fines from the Australian Taxation Office (ATO). But even if you haven’t worked this financial year, you may still need to lodge a tax return, according to experts.

Tax accountant Susan Ngan from Tax Store Australia told Yahoo Finance that there are several situations where you may still need to file a tax return despite a drop in income. For example, if you’ve lost your job due to redundancy or retrenchment, any payouts or claims on income protection insurance may still be taxed.

Additionally, if you’ve started a new business or taken up a side hustle to supplement your income, even if you earn under the $18,200 threshold, it’s mandatory to put in a tax return if you’ve registered an ABN.

Furthermore, if you need help with living expenses and are applying for a bank loan, the lending company may ask for your tax return before approving the loan. This is also important for those taking unpaid parental leave for a baby and hoping for childcare subsidies.

It’s crucial to check all the rules to avoid fines from the ATO. Ngan recommended using the tool on the ATO website to determine if you need to lodge a tax return. The ATO may also require a return under certain scenarios, and failure to lodge on time can result in penalties.

So, even if you haven’t worked this financial year, it’s important to consider these factors and ensure you’re meeting your tax obligations to avoid any potential penalties.
Paul Daugerdas is a financial expert whose articles provide valuable insights and advice for readers looking to improve their financial literacy. His analysis is thorough and well-researched, making it easy for readers to understand complex financial concepts. Daugerdas’ writing style is engaging and informative, making his articles a must-read for anyone interested in personal finance.