Do I need to Lodge a Tax Return?

Typically you will need to lodge a tax return if:

• you have paid income tax during the financial year
• your taxable income is above the tax-free threshold of $6,000 and you did not receive Centrelink payment,
• you received a Centrelink payment, had other income, and your taxable income was above the threshold amount listed in TaxPack.

Other reasons you need to lodge a tax return include such things as:

• you are the liable prent under a child support assesment,
• You have a reportable fringe benefits amount,
• you are entitled to the private health insurance offset,
• you carried on a business,
• you made aloss or claim claim a loss you made in a previous year

... along with a host of other reasons.

If you are unsure, it is worth getting in touch with your accountant or tax agent to clarify your obligation. Did you know the ATO now have an online tax tool to help you determine if you need to lodge?

If you are not required to lodge a return this year, you should submit a non-lodgement advice to the ATO (this is included in TaxPack 2007). If you are registered under a tax agent, they will inform the Tax Office for you.

Lodge on Time and Don't Risk a Fine

A few people have asked when their returns must be done by so I thought it worth mentioning here.

You have until the 31 October 2007 to lodge your 2006-07 tax return.

Late fines range from $110 to $550 if you lodge within four months after the due date, and up to $2,750 after that period. Interest is also incurred on outstanding tax.

Individuals lodging their own return must do so by October 31, whereas those registered under a tax agent have longer.

One reason many people avoid lodging on time is the fear they will have to pay a tax debt. If this applies to you, be aware that:

• you have plenty of time before now and the first payment,


• the ATO can work with you to come up with a manageable payment plan, and


• the longer you leave it, the more fines and interest charges you will eventually have to pay.

The lesson here is lodge on time and don't risk the fines.