Quick Summary:
- The tax-free threshold is still $18,200 for 2024–25 but you might still need to lodge.
- You may need to submit a non-lodgement advice if you had no income.
- Government payments, business losses, or side gigs can trigger a requirement to lodge.
- Use the ATO’s “Do I need to lodge?” tool to double-check your situation before skipping your return.
When “No Income” Doesn’t Mean “No Tax Return”
Let’s be honest. Tax time isn’t anyone’s favourite season. But before you toss that ATO reminder in the bin, here’s the deal:
Even if you earned nothing this year, you may still need to lodge a tax return or file a non-lodgement advice.
The Australian Taxation Office (ATO) requires everyone to declare their financial activity each year, even if that activity was minimal. You can check your exact status using the ATO’s “Do I need to lodge a tax return?” tool.
You might still need to lodge if:
- You ran a small business or sole trader ABN, even at a loss.
- You earned interest, dividends, or capital gains on savings or shares.
- You received government payments (like JobSeeker or Youth Allowance).
- You had reportable super contributions or fringe benefits.
- You received foreign income or worked overseas part of the year.
- You want to claim franking credits or carry forward a business loss.
Pro Tax Tip: Even if you have no job or salary, it’s worth checking your ATO MyGov account. Sometimes income is automatically reported (e.g. bank interest or PAYG slips).
What Counts as “Income”? (It’s More Than Just Your Paycheck)
If you didn’t get paid by an employer this year, that doesn’t automatically mean you earned “nothing.” The ATO defines taxable income as any money or benefits you receive in return for providing goods, services, or investments.
Here’s what might count:
- Wages, salary, and bonuses
- Interest from bank accounts
- Dividends or investment income
- Airbnb or rental earnings
- Freelance or gig-economy income
- Foreign income
- Crypto gains (yes, they’re taxable too)
- Reportable employer super or fringe benefits
For more details, check the ATO’s Income you must declare.
Pro Tax Tip: If you sold something on Facebook Marketplace or did a few paid design jobs on the side, it might still count as income especially if it was regular or profit-driven.
The 2024–25 Tax-Free Threshold and Rates
Australia’s tax-free threshold remains $18,200 for residents in 2024–25. That means if your taxable income is under that, you generally won’t pay any tax.
| Taxable Income | Tax on This Income (Residents) |
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 + 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 + 37c for each $1 over $135,000 |
| $190,001 and over | $51,638 + 45c for each $1 over $190,000 |
(Source: ATO Income Tax Rates 2024–25)
Pro Tax Tip: The tax-free threshold applies to residents. Foreign residents and working holiday makers have different rates so check your residency status here.
What If You Earned Less Than $18,200?
If your total income was below the threshold, you may not need to lodge a return but that doesn’t mean you can ignore the ATO.
Instead, you should file a non-lodgement advice to officially tell the ATO you don’t need to lodge. This prevents them from flagging you as “late” or issuing a Failure to Lodge (FTL) penalty.
You can submit one easily through your myGov account or ask your local ITP Tax Accountant to do it for you.
Pro Tax Tip: A non-lodgement advice also ensures your Family Tax Benefit and Child Care Subsidy stay accurate since those are based on your income records.
When Lodging Can Actually Benefit You
Even if your income was low or zero, there are good reasons to lodge anyway:
- You might get a refund
If you had tax withheld from any small payments (e.g., casual work, bank interest), lodging lets you claim it back. - You can carry forward a business loss
If your expenses exceeded your income (say, you bought equipment for a future business), you can use that loss to offset future profits. - You’ll keep your record clean
Lodging or filing non-lodgement ensures your ATO file stays up-to-date. - You may access credits and rebates.
Certain government rebates (like the low-income offset) require a lodged return to be applied.
Pro Tax Tip: Sometimes, even a “nil” return can lead to a surprise refund if you had credits or withheld tax throughout the year.
Common Mistakes Aussies Make at Tax Time
If you’re not earning much, it’s tempting to think “none of this matters.” But these are the errors that often trip people up:
- Forgetting to report small freelance jobs or platform income (like Fiverr or Uber).
- Claiming work-from-home expenses without proper logs.
- Skipping a non-lodgement advice (which can trigger ATO letters).
- Mixing personal and business expenses.
- Ignoring super contributions or foreign earnings.
For example, the ATO has warned that incorrect work-related deductions are one of the biggest issues they review every year.
Pro Tax Tip: Keep receipts and digital copies for at least five years. The ATO may request them, especially if you claim deductions.
Deadlines and How to Stay Ahead
- Tax time opens on 1 July 2025 for the 2024–25 year.
- Lodgement deadline (if self-filing): 31 October 2025.
- If you use a registered tax agent (like ITP), and you’re on their client list by 31 October, you may have an extension up to May 2026.
Need help lodging? You can easily book a tax appointment online with ITP.
Pro Tax Tip: Don’t wait until late October. ATO systems get slammed, and small mistakes can delay refunds.
What To Do If You’re Still Unsure
Here’s a quick plan for peace of mind:
- Check your income and documents (bank interest, super, payments).
- Use the ATO’s “Do I need to lodge?” calculator.
- Decide whether to lodge or file non-lodgement advice.
- Get help from your nearest ITP Tax Accountant.
- Keep a record of what you submitted (and your ATO reference number).
Keep It Clean, Simple, and Stress-Free
If you didn’t earn much (or anything) in 2024–25, that doesn’t mean you can skip tax time. A quick check or 15-minute chat with an expert can prevent a year’s worth of ATO confusion.
At ITP, we’ve been helping Aussies for over 50 years from business owners,tradies and freelancers to retirees and students. Whether you’re lodging a simple nil return or have a mix of side gigs and deductions, we’ll help you stay compliant and maximise your entitlements.
Contact ITP today to book your appointment or chat with a friendly expert who can help you sort your tax — even if you think there’s “nothing to declare.”
Disclaimer: The information in this article is intended as general guidance only and does not consider your individual financial or tax circumstances. You should seek advice from a qualified tax professional or accountant before making any decisions.