Not everyone is required to lodge a tax return.  Below are listed a number of reasons outlining situations where a tax return is not required.  It is important to know if you need to lodge a tax return for your individual circumstance as fines and penalties can apply if a tax return was required but not lodged.

Reason 1

During 2009–10, you were an Australian resident and you:

• paid tax under the pay as you go (PAYG) withholding or instalment system, or
• had tax withheld from payments made to you.

Reason 2

You were eligible for the Seniors Australian Tax Offset and your rebate income (not including your spouse’s) was more than:

• $29,867 if you were single, widowed or separated at any time during the year
• $28,600 if you had a spouse but one of you lived in a nursing home or you had to live apart due to illness, or
• $25,680 if you lived with your spouse for the full year.

Reason 3

You were not eligible for the senior Australians tax offset but you received a payment listed at question 5 and other taxable payments which when added together made your taxable income more than $15,000.

Reason 4

You were not eligible for the senior Australians tax offset but you received an Australian Government pension, allowance or payment listed at question 6 and your rebate income was more than:

• $27,697 if you were single, widowed or separated at any time during the year
• $22,784 if you had a spouse but one of you lived in a nursing home or you had to live apart due to illness
• $26,671 if you lived with your spouse for the full year.

Reason 5

You were not eligible for the senior Australians tax offset and you did not receive a payment listed at question 5 or 6, but your taxable income exceeded:

• $6,000 if you were an Australian resident for tax purposes for the full year
• $3,000 if you were under 18 years old at 30 June 2010 and your income was not salary or wages
• $1 if you were a non-resident and you had income taxable in Australia which did not have non-resident withholding tax withheld from it, or
• your part-year tax-free threshold amount if you became or stopped being an Australian resident for tax purposes.

Other reasons

       You must lodge a tax return if any of the following applied to you.

• You had a reportable fringe benefits amount on your PAYG payment summary – individual non-business or PAYG payment summary – foreign employment.
• You had reportable employer superannuation contributions on your PAYG payment summary – individual non-business or PAYG payment summary – foreign employment.
• You were entitled to the private health insurance tax offset
• You carried on a business.
• You made a loss or you can claim a loss you made in a previous year.
• You were 60 years old or older and you received an Australian superannuation lump sum that included an untaxed element.
• You were under 60 years old and you received an Australian superannuation lump sum that included a taxed element or an untaxed element.
• You were entitled to a distribution from a trust or you had an interest in a partnership and the trust or partnership carried on a business of primary production.
• You were an Australian resident for tax purposes and you had exempt foreign employment income and $1 or more of other income.
• You are a special professional covered by the income averaging provisions. These provisions apply to authors of literary, dramatic, musical or artistic works; inventors; performing artists; production associates and active sportspeople.
• You received income from dividends or distributions exceeding $6,000 (or $416 if you were under 18 years old on 30 June 2010) and you had
  • franking credits attached, or
  • amounts withheld because you did not quote your tax file number or Australian business number to the investment body.
• You made personal contributions to a complying superannuation fund or retirement savings account and will be eligible to receive a super co-contribution for these contributions.
• You were either a liable parent or a recipient parent under a child support assessment unless you received Australian Government allowances, pensions or payments (whether taxable or exempt) for the whole of the period 1 July 2009 to 30 June 2010, and the total of all the following payments was less than $19,618:
  • taxable income
  • exempt Australian Government allowances, pensions and payments
  • target foreign income
  • reportable fringe benefits
  • net financial investment loss
  • net rental property loss and
  • reportable superannuation contributions.

Deceased estate

If you are looking after the estate of someone who died during 2009–10, consider all the above reasons on their behalf, and if a tax return is not required complete a non-lodgement advice.

First home saver account

If you had a first home saver account in 2009–10 and believe you are entitled to a first home saver account government contribution, you must lodge either:

• an income tax return, or
• a notification of eligibility if you are not required to lodge an income tax return and you were an Australian resident for at least part of the income year.

If you have read all the above information and know that you do not have to lodge a tax return, you should complete the non-lodgment advice and send it to the ATO unless one of the following applies to you:

• You have already sent the ATO a tax return, non-lodgment advice, form or letter telling them that you do not need to lodge a tax return for all future years.
• You are lodging an application for a refund of franking credits for 2010.
• You are lodging a baby bonus claim for 2010.
• You are lodging an application for an education tax refund for 2010.
• Your only income was from an allowance or payment listed at question 5 of the I return or you received a pension, payment or an allowance listed at question 6 and
  • your rebate income was less than the relevant amount in reason 2 (if you are eligible for the senior Australians tax offset), or
  • your taxable income was less than the relevant amount in reason 3 (the agencies that paid you have provided information for the ATO to determine that you do not need to lodge a tax return), or
  • your rebate income was less than the relevant amount in reason 4 (the agencies that paid you have provided information for the ATO to determine that you do not need to lodge a tax return).