Many Australians earning below the tax-free threshold assume they don’t need to lodge a tax return but that’s not always true. The ATO outlines specific situations where even low-income earners, students, and part-time workers must lodge.

Australian low-income earner lodging tax return – ATO rules and exceptions explained for students, casual workers, and Centrelink recipients.

This blog simplifies the official ATO guidance and helps you understand when, why, and how to lodge if your income seems “too low to matter.”

Who This Affects

You might think this doesn’t apply to you, but if you:

  • Worked casually or part-time
  • Got taxed on even a small income
  • Received Centrelink payments
  • Had investments or sold assets

Then yes, you might still need to lodge

When You Must Lodge Even on Low Income

According to the ATO, you must lodge a return if any of these apply:

  • You had tax withheld, even if you earned under $18,200
    If your employer deducted tax, you must lodge even if your total income was under the threshold. This is how you get that money back.
  • You earned more than the tax-free threshold, In 2025–26, the tax-free threshold remains $18,200.
    If your income exceeded this, lodging is mandatory.
  • You received income from Centrelink payments. For example: Jobseeker, AU study, ABSTUDY. While these may be tax-free in some cases, they are still reportable income and the ATO uses your return to assess entitlements or repayments.
  • You made money from bank interest, crypto, shares, or gigs. Even if it’s a side hustle or a few bucks from a savings account, it counts. ATO pre-fill data often picks these up so it’s best to lodge and avoid future issues.

What Happens If You Don’t Lodge?

Think nothing happens if you skip it? Think again. Failing to lodge when required can result in:

  • ATO penalties or interest
  • Missed refunds from withheld tax
  • Errors in Centrelink payments or entitlements
  • Problems applying for loans or visas due to gaps in your tax history


When You DON’T Need to Lodge

You may not need to lodge if:

  • You earned under $18,200
  • No tax was withheld
  • You received only tax-exempt government payments
  • You had no other forms of income

But even in this case, you must submit a Non-lodgement advice to the ATO so they don’t chase you later.

When the Rules Change: The Exceptions

You may still need to lodge if:

  • You’re a senior or pensioner
  • You received foreign income
  • You had capital gains, even from crypto or shares
  • You’ve accessed super early
  • You have a Higher Education Loan (HELP/HECS)

Each of these has its own lodgement triggers, even with low income.

Deadline Reminder

Tax time officially starts 1 July and ends 31 October for most individuals. If you miss this and are not with a registered tax agent, the ATO may issue penalties or late lodgement notices.

Final Checklist Before You Lodge (2025–26)

  • Check if tax was withheld from any job
  • Review Centrelink payment statements
  • Check for bank interest, shares, crypto trades
  • If not lodging, submit a non-lodgement advice

Final Words for You

Whether you’re:

  • A student balancing part-time gigs
  • A casual worker earning under $18,200
  • Someone receiving Centrelink and unsure what counts.

The rules are clear but specific, and your best move is to check. Sometimes, a 5-minute check can turn into a few hundred dollars back in your pocket or prevent a penalty down the line.