Quick answer:
- You generally don’t need to lodge a 2025-26 tax return if you were an Australian resident all year, your taxable income was $18,200 or less, and no tax was withheld from anything you were paid.
- You must lodge if, among other things, tax was withheld from any payment, you ran a business (even at a loss), you have a loss to claim, or you have reportable fringe benefits or employer super contributions on your income statement.
- If you don’t need to lodge, tell the ATO by lodging a non-lodgment advice through myGov.
- Lodging can still be worth it if tax was withheld from your pay or bank interest, because you may get it back as a refund.
- Self-lodged 2025-26 returns were due 31 October 2026. Because that’s a Saturday, the ATO accepts returns lodged on Monday 2 November 2026.
What you’ll learn:
- When you have to lodge a tax return even with little or no income
- What counts as income for tax purposes
- How the tax-free threshold works for 2025-26 and 2026-27
- When to lodge a non-lodgment advice instead
- When lodging a return works in your favour
When “no income” doesn’t mean “no tax return”
Many people assume that if they didn’t earn much, they don’t need to deal with the ATO. That’s often true, but not always.
Under the ATO’s guide, Do you need to lodge a tax return? 2026, you must lodge a 2025-26 return if any of these applied to you (this is a summary, not the full list):
- Tax was withheld from any payment you received, such as wages, or bank interest where you didn’t give your TFN
- your taxable income was over $18,200 and you were an Australian resident for the full year
- you were under 18 on 30 June 2026 and earned more than $416 from income other than salary or wages, such as interest or dividends
- you carried on a business, even if it made a loss or earned very little
- you made a loss in 2025-26, including a capital loss, or have a loss from an earlier year you can claim
- your income statement shows reportable fringe benefits or reportable employer super contributions
- you received a super lump sum in certain circumstances, such as being under 60
- you’re a working holiday maker with Australian income of $45,001 or more
- you’re a foreign resident with Australian income that didn’t have final withholding tax taken out
- you’re a liable parent or entitled to child support, unless both of these apply: you received government payments for the whole year, and your total income for child support purposes was under $31,047
If you receive government payments, different thresholds apply. For example, if you received certain allowances such as JobSeeker, you must lodge if your taxable income was over $22,575. Seniors and pensioners have their own thresholds.
Not sure? The ATO’s Do I need to lodge a tax return? tool takes 5 to 10 minutes and covers income years up to 2025-26. If you sign in through myGov, it uses information the ATO already holds about you.
What counts as income?
For tax purposes, income is broader than just a pay packet. It includes:
- salary, wages, tips and bonuses
- bank interest
- dividends and distributions from shares, managed funds or trusts
- rent, including from short-term stays such as Airbnb
- freelance, gig and platform income, such as rideshare, delivery or design work
- capital gains, including from crypto
- foreign income, if you’re an Australian resident
- some government payments
Selling your own second-hand items occasionally isn’t usually income. But if you buy and sell regularly to make a profit, or you have a side business, that income needs to be declared. Our guide to how a side hustle affects your tax explains where the line sits.
The tax-free threshold for 2025-26 and 2026-27
Australian residents for the full year don’t pay tax on the first $18,200 of taxable income. The ATO’s resident tax rates for the two current years are:
2025-26 (the return you’re lodging now):
| Taxable income | Tax on this income |
|---|---|
| $0 to $18,200 | Nil |
| $18,201 to $45,000 | 16c for each $1 over $18,200 |
| $45,001 to $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 to $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,638 plus 45c for each $1 over $190,000 |
2026-27 (from 1 July 2026):
| Taxable income | Tax on this income |
|---|---|
| $0 to $18,200 | Nil |
| $18,201 to $45,000 | 15c for each $1 over $18,200 |
| $45,001 to $135,000 | $4,020 plus 30c for each $1 over $45,000 |
| $135,001 to $190,000 | $31,020 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,370 plus 45c for each $1 over $190,000 |
The rates don’t include the 2% Medicare levy, which low-income earners may pay at a reduced rate or not at all.
The tax-free threshold applies to Australian residents. Foreign residents and working holiday makers are taxed from the first dollar, at different rates. If you became or stopped being a resident during the year, you get a part-year threshold.
What if you earned less than $18,200?
If none of the situations above apply, and no tax was withheld from anything you were paid, you usually don’t need to lodge a return. But you shouldn’t just stay silent.
Instead, lodge a non-lodgment advice. This tells the ATO you don’t need to lodge for the year, so it doesn’t follow you up for an overdue return. You can do it in myGov by going to the ATO, then Tax, Lodgments and Non-lodgment advice. You can also tell the ATO you won’t need to lodge in future years.
A few things to know:
- You can’t lodge a non-lodgment advice if the ATO’s records show an active ABN, or PAYG withholding or instalments for the year. In those cases, you’ll need to lodge a return.
- If you get Family Tax Benefit, Child Care Subsidy or child support, you also need to tell Services Australia your income for the year, even if you don’t lodge a tax return. Otherwise you may not get your full entitlement.
- If you have franking credits but don’t need to lodge, you can apply for a refund of franking credits instead of lodging a return.
When lodging works in your favour
Even if you’re not required to lodge, a tax return can put money back in your pocket.
- Getting withheld tax back. If you worked a casual job for part of the year, tax was probably withheld from your pay. If your total income was under $18,200, lodging a return usually gets that tax refunded. (Strictly, having tax withheld means you must lodge anyway.)
- Claiming tax withheld from bank interest. If you didn’t give your bank your TFN, tax may have been withheld from your interest at the top rate.
- Recording a loss. If you started a business or made an investment loss, lodging a return records that loss so you can use it against future income.
- Keeping your records straight. An up-to-date tax record makes it easier to apply for government payments, loans or a visa.
Want an idea of your refund? Try ITP’s income tax calculator.
Common mistakes to avoid
- Forgetting small amounts of income. Platform, freelance and gig income is often reported to the ATO, so leaving it out can trigger an adjustment.
- Ignoring the non-lodgment advice. Doing nothing can lead to reminder letters and, eventually, the ATO treating you as an overdue lodger.
- Assuming a loss means you don’t need to lodge. If you carried on a business or have a loss to claim, you must lodge.
- Claiming deductions without records. If you do lodge, you need records for what you claim, such as a log of hours for working from home expenses. Keep records for 5 years.
- Forgetting foreign income. Australian residents are taxed on worldwide income.
Key dates for 2026
- 1 July 2026: 2025-26 tax returns opened.
- 31 October 2026: Self-lodged 2025-26 returns were due. Because 31 October fell on a Saturday, a return lodged on Monday 2 November 2026 is on time.
- 31 October 2026: Last day to get on a registered tax agent’s client list. Most agent clients then have until 15 May 2027 to lodge, unless they have earlier returns outstanding.
Missed a deadline, or not sure if you were meant to lodge in earlier years? Our guides to 2026 tax deadlines and lodging a late tax return can help. If the ATO decides you did need to lodge, the late lodgment penalty is generally not applied where a late return results in a refund or nil result.
Still not sure? Here’s what to do
- Gather what you received during the year: income statements, bank interest, dividend statements and any payment summaries from Services Australia.
- Use the ATO’s Do I need to lodge? tool, ideally through myGov.
- Either lodge a tax return, or lodge a non-lodgment advice.
- Keep a copy of what you lodged and any receipt number.
An ITP tax accountant can check your situation and lodge the right thing for you, whether that’s a full return or a non-lodgment advice. Find your nearest ITP office or start your tax return online. If this is your first time dealing with the ATO, our guide to lodging your first tax return walks you through it.
FAQs: do I need to lodge a tax return?
Do I need to lodge a tax return if I earned less than $18,200?
Usually not, if you were an Australian resident for the full year and no tax was withheld from any of your income. But you must lodge if any other reason applies, such as running a business or having a loss to claim. If you don’t need to lodge, send the ATO a non-lodgment advice.
What is non-lodgment advice?
It’s a notice telling the ATO you don’t need to lodge a tax return for a particular year. You can lodge it through myGov, under the ATO’s Lodgments section, or on a paper form.
Should I lodge a tax return if tax was taken out of my pay?
Yes. If tax was withheld from any payment, you must lodge. If your total income was under the tax-free threshold, you’ll usually get a refund of that tax.
Do I need to lodge if I’m under 18?
If your only income was salary or wages under $18,200 and no tax was withheld, usually not. But if you were under 18 on 30 June 2026 and earned more than $416 from other income, such as interest, dividends or trust distributions, you must lodge.
Do I need to lodge if my business makes a loss?
Yes. If you carried on a business during the year, you must lodge a return, even if it made a loss or earned very little.
What if I only receive Centrelink payments?
It depends on the payment and your total income. For example, if you received certain allowances such as JobSeeker, you must lodge if your taxable income was over $22,575 for 2025-26. If you receive family payments or child support, you also need to give Services Australia your income details.
What is the tax-free threshold for 2026-27?
It stays at $18,200 for Australian residents. From 1 July 2026, the rate of income between $18,201 and $45,000 drops from 16% to 15%.
Disclaimer: This article provides general information about whether you need to lodge a tax return and isn’t personal tax advice. Lodgment requirements depend on your circumstances. Always check the ATO’s current guidance or speak with a registered tax agent about your situation. ITP Accounting Professionals disclaims any liability for decisions made based solely on the general information in this article.