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      Lodgement of Returns

      Legislative requirements

      Enquiry:

      Could you advise me on whether the following persons and entities must lodge an income tax return for 2016/17:

      1. A resident individual whose taxable income is more than $18, 200.
      2. A resident individual aged 23 years whose taxable income is $16,000 and who have had amounts of PAYG withheld from their salary and wages during the year.
      3. An unmarried individual aged 17 years at 30 June 2017 who has $400 income from dividends and no other income.
      4. A non-resident individual who carried on business in Australia during 2016/17.
      5. A resident individual who has taxable income of $12,000 for 2016/17 with no amounts withheld by their employer but whose payment summary shows a reportable fringe benefits amount

       

      Explanation:

      In relation to the examples listed above, the legislative instrument shows:

      1. A resident individual must lodge an income tax return if their taxable income exceeds $18, 200(the tax-free threshold for 2016/17).
      2. A resident individual must lodge an income tax return if they have had amounts of PAYG withheld from their salary or wage income during 2016/17.
      3. An unmarried individual aged 17 years on the last day of the year is a "prescribed person" for the purposes of ITAA36 Div 6AA and must lodge an income tax return only if their unearned income (i.e. other than a certain excepted income) for the year exceeds $416.
      4. A non-resident individual who carries on business in Australia is required to lodge an income tax return because the Australian-source income derived from the business would be assessable income of the non-resident and tax is payable from the first dollar.
      5. A resident individual who has taxable income below the $18, 200 tax-free thresholds would not normally be required to lodge an income tax return if no PAYG amounts have been withheld by their employer unless their payment summary shows a reportable fringe benefits amount - if individual’s employer has provided fringe benefits with a taxable value of at least $2,000 to the individual, the gross-up taxable value must be reported on the payment summary and an income tax return must be lodged.