Quick Answer:
You need a tax file number, your income and deduction records, and a myGov account linked to the ATO, or a registered tax agent. The tax-free threshold is $18,200, income above that up to $45,000 is taxed at 15%, and most people can lodge from 1 July with a due date of 31 October.
Your first tax return is simpler than it looks once you know what applies to you. Here is what a first-time lodger in Australia needs to know for the 2026-27 income year, from the tax-free threshold to what you can actually claim.
Quick Summary: First Tax Return Basics
- Tax-free threshold: the first $18,200 you earn each year is tax-free (unchanged since 2012-13)
- Income between $18,201 and $45,000 is taxed at 15% for 2026-27, down from 16% previously
- Low Income Tax Offset (LITO): up to $700, reducing your tax bill further if your income is under $66,667
- You need a tax file number (TFN) and a myGov account linked to the ATO to lodge online yourself or use a tax agent who can lodge on your behalf
- The financial year runs 1 July to 30 June, and the standard lodgment deadline is 31 October
- Superannuation guarantee is 12% of your ordinary earnings, paid by your employer on top of your wage
1. What You Need Before You Start
- Your tax file number (TFN)
- A myGov account linked to the ATO, or a registered tax agent to lodge on your behalf
- Your income statement from each employer (usually available in myGov by mid-July)
- Bank interest statements, if you earned interest during the year
- Receipts or records for any work-related expenses you want to claim
2. The Tax-Free Threshold and 2026-27 Tax Rates
The tax-free threshold means the first $18,200 you earn in a financial year is not taxed at all. This threshold has stayed at $18,200 since 2012-13. If you have one employer, you should claim the tax-free threshold with them so less tax is withheld from your pay throughout the year. If you have multiple employers then you should only claim the tax free threshold with one employer otherwise you may end up with a large tax bill when lodging the return.
2026-27 resident individual tax rates (excluding the 2% Medicare levy, which most taxpayers also pay):
| Taxable Income | Tax Rate |
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| Over $190,000 | 45% |
Full detail is on the ATO’s tax rates for Australian residents page.
3. The Low Income Tax Offset
If your taxable income is $37,500 or less, you get the full Low Income Tax Offset of $700, which reduces the tax you owe directly. Between $37,501 and $45,000, the offset reduces by 5 cents for every dollar above $37,500. Between $45,001 and $66,667, it reduces by 1.5 cents for every dollar above $45,000, cutting out completely above $66,667. Combined with the tax-free threshold, most first-time workers on modest incomes pay very little tax in their early working years. See the ATO’s low income tax offset page for the full taper rates.
The offset is applied automatically when you lodge, you don’t need to claim it separately. See our top tax offsets guide for other offsets that might apply to your situation.
4. Superannuation: What Should Be Landing in Your Fund
Your employer must pay superannuation guarantee contributions on top of your wage, currently 12% of your ordinary time earnings for 2026-27. This is the final step of a legislated increase from 9.5%, so 12% is expected to stay the rate going forward. From 1 July 2026, super is also paid every payday rather than quarterly, so it should appear in your fund more often and sooner after each pay run. It is worth checking your payslips and super fund statements match up, since unpaid or late super is a common first-job issue. See the ATO’s super guarantee rates page for the full rate history.
5. What You Can (and Can’t) Claim
As a first-time lodger, common deductions include work-related uniforms and protective clothing, tools and equipment needed for your job, union or professional association fees, and a portion of working-from-home costs if you work remotely.
You can’t claim everyday clothing, travel between home and your regular workplace, or private expenses. Our work from home deductions guide covers what’s allowed if you work remotely.
6. When and How to Lodge
The Australian financial year runs from 1 July to 30 June. You can lodge from 1 July, though it is worth waiting until your income statement is marked ‘Tax ready’ in myGov, usually by mid to late July, so your figures are complete. If you lodge yourself through myTax, the deadline is 31 October. If you lodge through a registered tax agent, you generally get a later deadline, provided you’re registered with them before 31 October.
Before You Lodge: A Quick Checklist
- Confirm you claimed the tax-free threshold with your main employer if you only have one job.
- Wait for your income statement to show ‘Tax ready’ in myGov before lodging.
- Gather receipts for any work-related expenses, even small ones, in case the flat deduction doesn’t apply to your situation.
- Check your super fund statements match what your payslips say your employer should have paid.
Why Professional Help Matters
Your first tax return sets the pattern for how you handle tax going forward, and getting the basics right early, like correctly claiming the threshold and understanding what you can deduct, makes every return after it easier. ITP Accounting Professionals has helped first-time lodgers get started for decades.
Not sure where to start? Book a consultation with ITP and we’ll walk you through your first return.
Frequently Asked Questions
If your total income was under the tax-free threshold and no tax was withheld, you may only need to lodge a non-lodgment advice rather than a full return. Check with the ATO or your tax agent to confirm which applies to you.
The tax-free threshold is $18,200, meaning you pay no income tax on the first $18,200 you earn in the financial year. This amount has not changed since 2012-13.
Yes. The ATO applies the Low Income Tax Offset automatically when you lodge if your taxable income qualifies; you don’t need to claim it separately.
12% of your ordinary time earnings, the final step of a legislated increase from 9.5%. From 1 July 2026, this is also paid every payday rather than quarterly.
Ready to Lodge Your First Return?
Getting your first tax return right builds good habits for every return after it. ITP Accounting Professionals has helped generations of Australians lodge their first return with confidence. If you’d like help getting started, get in touch with your local ITP office.
Disclaimer: This article provides general information only and is not a substitute for professional tax advice for your specific situation. It reflects current tax law and ATO guidance as at September 2026. Before acting on any of these thresholds, speak with a qualified tax professional who can assess your circumstances.