Private ruling: Tax return
Published: September 2014
Ruling period: Year ended 30 June 2010 | Year ended 30 June 2011 | Year ended 30 June 2012 | Year ended 30 June 2013 | Year ended 30 June 2014
Date scheme commenced: 1 July 2009

Ruling: Q1: Do you need to lodge a tax return when your taxable income is below the tax free threshold? | A1: No.


Relevant legislative provisions: Income Tax Assessment Act 1936 Part IV

Reasons for decision: Summary: The Commissioner of Taxation generally requires a person to lodge a tax return each year. However, there are exemptions in relation to this requirement. Where a person's taxable income is more than the relevant tax free threshold, then a tax return should be lodged. For the 2009-10 to 2011-12 financial years, the tax free threshold for Australian residents was $6,000. For the 2012-13 and 2013-14 financial years, the tax free threshold for Australian residents is $18,200. Your taxable income for the 2009-10 to 2013-14 was below the relevant threshold and therefore you are not required to lodge a tax return unless certain other circumstances exist. The circumstances which are applicable to your situation are discussed below. The Commissioner also requires taxpayers to lodge a tax return where they are carrying on a business. As you are not carrying on a business for taxation purposes, you are not required to lodge a tax return for this reason. An income averaging scheme applies to certain classes of special professionals. Division 405 of the Income Tax Assessment Act 1997 (ITAA 1997) sets out the rules in relation to special professional income. Under section 405-10 of the ITAA 1997, the first income year for the averaging provisions to apply is when your taxable professional income is more than $2,500 and you are an Australian resident. The special professional averaging provisions do not apply in your circumstances. Where a person has exempt foreign employment income, they may be required to lodge a return if they have other income. However, in your case you have not worked overseas and your income is not regarded as exempt foreign employment income. Therefore the provisions in relation to exempt foreign employment income do not apply to you. There are no other provisions in the legislation that require you to lodge a tax return for the 2009-10 to 2013-14 financial years. As your taxable income for these years is well below the relevant tax free threshold, you are not required to lodge a tax return.

Relevant facts: You are an Australia resident. | You receive an exempt pension. | You receive a small amount of income which is taxed overseas. | You also receive some bank interest. No tax has been withheld in relation to this interest or other income. Your bank interest for each financial year is less than $1,000. | You do not have any other income and have not worked overseas.