New to tax? Learn how to lodge your first tax return in 2025 with this clear and updated guide. Discover what to prepare, what deductions you can claim and how ITP can help maximise your refund.
Starting your first job is a big moment. You’re earning your own money, gaining independence, and learning new responsibilities along the way. One of those responsibilities is lodging your first tax return.
If you’ve never dealt with the Australian Taxation Office (ATO) before, it’s perfectly normal to feel unsure about what to do next. But the truth is, your first tax return is usually the easiest you’ll ever lodge. With a little preparation and an understanding of the basics, you’ll get through the process smoothly and potentially put some extra money back in your pocket.
Here’s what this guide will help you understand:
- What a first-time tax return involves and why you need to lodge one
- How Australia’s tax system works (in simple, clear terms)
- What documents and records you need to collect
- Exactly how to lodge your first tax return, step by step
- What deductions you can claim and how to maximise your refund
- How long it takes the ATO to process your return
- Common questions first-time earners ask about tax
- When the tax deadline is and how tax agents can extend it
- Where to go for reliable support and expert help
Who Needs to Lodge a Tax Return?
If you’ve earned any taxable income during the financial year (1 July to 30 June), you may need to lodge a tax return. Even if you only worked for part of the year, even if you earned under the tax-free threshold, and even if your job was casual, you’ll likely still need to lodge.
Why?
Because your employer usually withholds PAYG tax from your wages, and the only way to get any of it refunded is to lodge a tax return. Many first-time workers get a refund because their income is below the tax-free threshold.
Understanding the Australian Tax System
Australia uses a progressive tax system, meaning your tax rate increases as your income increases. Your employer withholds PAYG tax from your pay and sends it to the ATO throughout the year.
Here are the 2024–25 income tax rates:
| Taxable Income | Tax on This Income |
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16 c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 plus 30 c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 plus 37 c for each $1 over $135,000 |
| $190,001 and over | $51,638 plus 45 c for each $1 over $190,000 |
You’ll also likely pay the Medicare Levy, which is usually 2% of your taxable income but may be reduced or waived for low-income earners.
Pro Tax Tip: If you start work without giving your employer your TFN, they must withhold tax at 49%. Apply for your TFN early at the ATO website and verify it at Australia Post.
What You Need Before Lodging Your Tax Return
Having the right documents ready makes your first tax return much easier. Most information is now automatically reported to the ATO, but it’s still important to check that everything is correct.
Your Income Statement
You don’t need to ask your employer for a paper summary anymore. Employers now use Single Touch Payroll (STP) to send details to the ATO, including:
- your wages
- PAYG tax withheld
- superannuation contributions
- allowances and bonuses
This information appears automatically in your MyGov account when it’s marked “tax ready”.
Other Types of Income
Income isn’t only your salary. You must also declare:
- Interest earned from bank accounts
- Income from any other jobs, even short-term work
- Dividends from shares
- Government payments (Youth Allowance, Austudy, etc.) in some cases
- Gig-economy earnings (Deliveroo, Uber Eats, Airtasker, etc.)
Pro Tax Tip: An ITP tax accountant will check all pre-filled ATO data to ensure nothing is missed or duplicated.
What Tax Deductions Can You Claim?
A tax deduction reduces your taxable income, which may increase your refund.
Even when you’re young or working casually, you could be entitled to several deductions.
Common Deductions for First-Time Workers
Work-Related Expenses
These must relate directly to earning your income. Examples include:
- Protective clothing or uniforms required by your employer
- Tools or equipment you must purchase for your job
- Laundry costs for compulsory uniforms
Self-Education Expenses
You may be able to claim these if the course:
- directly relates to your current job, and
- helps you gain skills needed for your role
Working From Home Expenses
If your employer requires you to work or study from home, you can claim a percentage of:
- Internet
- Phone
- Electricity
Donations
Gifts to approved charities over $2 are claimable.
Professional Memberships
Union fees, licences, cards, or industry memberships may also be deductible.
Keeping Receipts and Records
The ATO requires:
- You spent the money yourself.
- It directly relates to earning your income.
- You have proof (receipts, invoices, bank statements).
Digital receipts are accepted. ATO apps and budgeting apps can help store them safely.
Pro Tax Tip: The ATO can review your claims for up to five years, so store your digital receipts securely, cloud storage works well.
How Do I Lodge My First Tax Return?
You have three main options, and each works well depending on your situation.
Option 1: Lodge Through MyGov Yourself
You can link MyGov to the ATO and lodge online.
This is free, but you’ll need to understand:
- what deductions you can claim
- what income must be reported
- how to avoid common mistakes
It’s easy to miss deductions if you’re unsure what applies to you.
Option 2: Lodge With a Tax Accountant
A registered tax agent can:
- identify every deduction you’re entitled to
- check for errors
- maximise your refund
- lodge your return correctly and quickly
Appointments at ITP are available in person, by phone, Zoom or email. Most standard returns take 30 minutes or less.
Option 3: Use ITP’s Online Service
You can upload your details online and a real accountant will:
- review your information
- maximise your deductions
- contact you if anything needs clarification
- lodge securely with the ATO
This is perfect if you want convenience and expert support.
How Long Does the ATO Take to Process Your Return?
In 2025, most tax returns are processed within:
- 10 to 21 business days for electronic lodgements
- Longer if there are discrepancies or manual checks required
A tax agent can check the status for you if it seems delayed.
When Is the Deadline to Lodge?
The financial year runs from 1 July to 30 June.
Returns for the 2024–25 tax year must be lodged by:
- 30 October 2025 if you lodge yourself
- 15 May 2026 if you use a tax agent (and you’re on their lodgement list before 31 October)
Using a tax agent not only helps you get a better result and gives you more time.
Extra Tips for First-Time Taxpayers in 2025
Check Your Superannuation
Your employer must contribute 11.5% of your ordinary earnings to your super. Check your MyGov to ensure payments are being made correctly.
Beware of Tax Scams
The ATO will never:
- threaten arrest
- demand payment via gift cards
- send a link asking you to log in
Keep Your Details Updated
If your name, address or bank details change, update them in MyGov so your refund goes to the right place.
Frequently Asked Questions
Do I need to lodge a tax return if I only worked for part of the year?
Most likely yes. If tax was withheld, you should lodge a refund.
Can I get in trouble for not lodging?
Yes. Late lodgements may lead to penalties from the ATO.
What happens if I make a mistake?
You can easily request an amendment online or ask your tax agent to fix it.
Do students need to lodge?
If you earned taxable income or had PAYG withheld, yes.
Can I lodge it on my phone?
Yes. You can lodge via the MyGov app or using ITP’s online platform.
Ready to lodge your first tax return?
Lodging your first tax return doesn’t have to be overwhelming. By staying organised, understanding deductions, and working with a professional tax agent, you can lodge confidently and maximise your refund.
Start your online tax return today or book an appointment online, and let us guide you every step of the way.
Disclaimer: This guide provides general information and is not a substitute for personalised tax advice. For advice tailored to your situation, consult a registered tax agent.