Answering common questions about your tax return

With the end of the financial year approaching, it’s time to lodge your taxes. Navigating your tax obligations can be stressful but getting it right matters. According to University of Wollongong (UOW) Tax Clinic Director Stephanie Perkiss, anyone who earns an income and has a Tax File Number (TFN) is required to lodge a tax return regardless of their age.

It’s time to get familiar with terms like myGov, the ATO, and the Tax-Free threshold. To help make the process easier, the Tax Clinic has put together a handy Q&A to help you feel prepared and confident about the tax season. 

Who needs to lodge a tax return in Australia?

Earning over $18,200 in the financial year? Have your own Tax File Number (TFN)? If the answer is yes, you will need to lodge a tax return.  

You also need to lodge a tax return if you had tax withheld from any payments, operated a business, or are a foreign resident earning income in Australia. 

How do I lodge my tax return?

Take your pick! You can lodge your tax return through an accountant or do it yourself via myGov, linked to ATO Services. 

I have overdue tax returns, but scared I will be penalised, so I don't want to lodge.

If you earn over the tax-free threshold or meet other lodgement criteria, you are required to lodge a tax return. The longer you delay, the greater the risk of penalties increasing. 

General Interest will be charged on debt too, so it's best to get up-to-date quickly. 

Can I ask the ATO to release me from my tax debt? What if I'm in hardship?

You can request assistance, but financial approval is generally limited and not guaranteed as GST debt is non-negotiable.  

However, there are options available for payment plans or applications to have penalties and interest released under certain circumstances. 

If you are experiencing financial hardship, the ATO will require you to have all lodgements updated first - tax returns, BAS lodgements and more. They will then assess the debt as a whole and there are processes to support vulnerable people. 

Why am I paying so much tax?

The amount of tax you pay depends on the income bracket you are in. Australia's tax payments fund Medicare, public education, infrastructure, security, and more. 

I have an ABN/ am a small business owner, do I have to lodge BAS?

Only if you earn over $75,000 p.a. or are part of the "gig" economy, such as UBER drivers, you must lodge a BAS regardless of income. 

I don't know what (or where) my Tax File Number is.

You can apply for a TFN online, or via paper form. If you have lost the number, you can find it on your MyGov, ATO online services or by calling the ATO.  

When do I need to pay my HECS debt?

The amount that you need to pay back per year depends on how much income you earn. You will need to earn at least $67,001 in FY26 to be obligated to pay 15% for anything over $67,001.  

Additionally, you can make voluntary payments whenever you want. 

How does my Centrelink payment affect my taxable income?

Any Centrelink payment is added to any other income that you earned during the financial year. 

I earned income overseas. Will I get taxed in Australia for it?

This depends on your residency, if you are an Australian resident you will have to pay tax on the income. 

Can I deduct the cost of equipment purchased for university?

Only in certain degrees and if you are already employed in that profession. 

Have more questions? You can visit the UOW Tax Clinic for free tax assistance