Income Tax Returns in Australia (2026)
About this article
Sourced from Commonwealth Acts of Parliament, federal regulations, and official government guidance. State-level information reflects each state's own Acts and court decisions. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
Compare by state
Statute citations are verified per state. Select a state to jump to its full section below.
| Primary statute | |
|---|---|
| New South Wales | Taxation Administration Act 1996 (NSW) |
| Queensland | Income Tax Assessment Act 1997 (Cth) |
| South Australia | Income Tax Assessment Act 1997 (Cth) |
| Tasmania | Income Tax Assessment Act 1997 (Cth) |
| Victoria | Payroll Tax Act 2007 (Vic) |
| Western Australia | Income Tax Assessment Act 1997 (Cth) |
What is this right?
Every Australian resident who earns income lodges an income tax return with the ATO each financial year (1 July to 30 June). The rules sit in the Income Tax Assessment Act 1997.
The system is progressive. The first $18,200 is tax-free; after that, rates step up — 15% from $18,201 to $45,000 (this lowest rate was 16% up to 30 June 2026 and is legislated to fall again to 14% from 1 July 2027), 30% from $45,001 to $135,000, 37% from $135,001 to $190,000, and 45% above $190,000. Most taxpayers also pay the 2% Medicare levy. From the 2026–27 year you can also claim a $1,000 instant work-expense deduction without receipts (or itemise your actual work expenses if they total more).
If you lodge yourself, the deadline is 31 October. Use a registered tax agent and you usually get an extension — often to 15 May the following year, depending on the agent's lodgement program. Late lodgement triggers a Failure to Lodge (FTL) penalty of $330 (one penalty unit) for each 28-day period the return is late, capped at five periods (a maximum of $1,650) — which adds up faster than people expect.
Most employers now report income directly to the ATO through Single Touch Payroll (STP), so your income statement is pre-filled in myTax by the time you log in. The pre-fill makes simple returns genuinely simple.
When does it apply?
This applies to all Australian residents for tax purposes who earn above the tax-free threshold.
- You must lodge a return if your taxable income exceeds $18,200, or if you had tax withheld from payments and want a refund.
- Foreign residents are taxed from the first dollar with no tax-free threshold.
- Even if your income is below $18,200, you may need to lodge to claim a refund of withheld tax.
What to Do If You Are Late or Behind on Filing Your Australian Tax Return
- Lodge on time — by 31 October if self-lodging, or register with a tax agent before that date for an extension.
- Use myTax through your myGov account — most income and deduction information is pre-filled.
- Check your income statement is marked as 'Tax ready' before lodging.
- Keep records for 5 years from the date you lodge your return.
- Claim the tax-free threshold on your TFN declaration with your main employer.
- Report all income — wages, interest, dividends, rental income, and gig economy earnings.
What should you NOT do?
- Don't ignore lodgement deadlines — the ATO charges FTL penalties and may issue a default assessment.
- Don't leave out income — the ATO receives data from banks, employers, and share registries and will detect omissions.
- Don't claim the tax-free threshold with multiple employers — you can only claim it once. Doing so may result in a tax debt at year-end.
- Don't wait for your tax agent to contact you — make sure you are registered with them before 31 October.
About Tax Rights in Australia
The tax year runs 1 July to 30 June and most individuals lodge by 31 October. Income tax is set by the Income Tax Assessment Acts 1997 and 1936; GST (10%) sits under the A New Tax System (GST) Act 1999. If you disagree with an ATO assessment, you have 60 days to lodge an objection under Part IVC of the Taxation Administration Act 1953. Appeals go to the Administrative Review Tribunal (replaced AAT October 2024) or the Federal Court. The Inspector-General of Taxation handles complaints about ATO conduct.
Worked Examples
ScenarioYou earned salary income in the 2025–26 financial year and want to lodge your own tax return.
OutcomeBecause you're self-lodging, your return is generally due by 31 October 2026, and you can lodge free through myTax via myGov. The rules are federal (Income Tax Assessment Act 1997) and identical across all states — only separate state taxes like payroll tax differ.
Verified against the ATO: 31 October self-lodger deadline; financial year 1 July–30 June; ITAA 1997. Educational information, not tax or legal advice.
Common Questions
When is my Australian tax return due?
If you lodge your own return, it's generally due by 31 October after the end of the financial year (1 July–30 June). If you use a registered tax agent you usually get a later deadline, but you must be on their books before 31 October.
Do income tax rules differ by state in Australia?
No. Income tax is a federal tax under the Income Tax Assessment Act 1997, administered by the ATO, and the rules are the same in every state and territory. What differs by state are separate taxes like payroll tax and land tax, run by each state's revenue office.
How do I lodge my tax return for free?
You can lodge online through myTax, accessed via your myGov account linked to the ATO — it's free and pre-fills much of your information. You can also use a registered tax agent (paid) or, if eligible, the free Tax Help volunteer program.
What happens if I lodge late?
The ATO may apply a failure-to-lodge penalty, and if you lodged late last year your next return is due by 31 October regardless. If you're struggling, contact the ATO before the deadline — deferrals and support are available, and penalties can sometimes be remitted.
What is the income tax filing right in Australia?
Every Australian resident who earns income lodges an income tax return with the ATO each financial year (1 July to 30 June). The rules sit in the Income Tax Assessment Act 1997.The system is progressive. The first $18,200 is tax-free; after that, rates step up — 15% from $18,201 to $45,000 (this lowest rate was 16% up to 30 June 2026 and is legislated to fall again to 14% from 1 July 2027), 30% from $45,001 to $135,000, 37% from $135,001 to $190,000, and 45% above $190,000. Most taxpayers also pay the 2% Medicare levy. From the 2026–27 year you can also claim a $1,000 instant work-expense...
When does income tax filing apply?
This applies to all Australian residents for tax purposes who earn above the tax-free threshold.You must lodge a return if your taxable income exceeds $18,200, or if you had tax withheld from payments and want a refund.Foreign residents are taxed from the first dollar with no tax-free threshold.Even if your income is below $18,200, you may need to lodge to claim a refund of withheld tax.
What should I do if I have missed the deadline for lodging my tax return in Australia?
Lodge on time — by 31 October if self-lodging, or register with a tax agent before that date for an extension.Use myTax through your myGov account — most income and deduction information is pre-filled.Check your income statement is marked as 'Tax ready' before lodging.Keep records for 5 years from the date you lodge your return.Claim the tax-free threshold on your TFN declaration with your main employer.Report all income — wages, interest, dividends, rental income, and gig economy earnings.
What mistakes should I avoid with income tax filing?
Don't ignore lodgement deadlines — the ATO charges FTL penalties and may issue a default assessment.Don't leave out income — the ATO receives data from banks, employers, and share registries and will detect omissions.Don't claim the tax-free threshold with multiple employers — you can only claim it once. Doing so may result in a tax debt at year-end.Don't wait for your tax agent to contact you — make sure you are registered with them before 31 October.
State-by-state details
New South Wales
Primary statute: Taxation Administration Act 1996 (NSW)
Income tax in Australia is a federal matter — there is no state income tax in NSW. However, NSW residents may interact with state-level taxes and levies that affect their overall tax position.
- NSW does not impose a state income tax. All personal income tax is assessed and collected by the Australian Taxation Office (ATO) under the Income Tax Assessment Acts 1936 and 1997.
- NSW workers may need to account for payroll tax indirectly — employers in NSW pay payroll tax on wages above $1.2 million per year (Payroll Tax Act 2007 (NSW)), which can affect salary structuring and business costs.
- NSW has unique state taxes that may affect tax planning: land tax, stamp duty (transfer duty), and various levies administered by Revenue NSW.
- NSW residents who own investment properties must declare rental income in their federal tax returns and can claim deductions for expenses including land tax paid to Revenue NSW.
Queensland
Primary statute: Income Tax Assessment Act 1997 (Cth)
Income tax is a Commonwealth matter, but Queensland has its own state taxes that affect residents and businesses. Queensland is notable for being the only Australian state with no land tax on the principal place of residence (which is standard) and no stamp duty on insurance premiums.
- Queensland does not levy payroll tax on businesses with total Australian wages below the $1.3 million threshold (as of 2024). The rate is 4.75% for regional employers and 4.95% for other employers. Queensland's regional rate is designed to encourage employment outside the south-east corner.
- Queensland imposes transfer duty (stamp duty) on property transactions under the Duties Act 2001 (Qld). The rate scales from 1.5% to 5.75% depending on the property value.
- Queensland imposes land tax on the total taxable value of land owned (other than the principal place of residence) as at 30 June each year. The tax-free threshold is $600,000 for individuals (2024).
- Queensland abolished stamp duty on general insurance in 2008, making it the only state not to levy this tax. This reduces the cost of home, car, and contents insurance for Queenslanders.
South Australia
Primary statute: Income Tax Assessment Act 1997 (Cth)
Income tax in Australia is a federal matter — there is no state income tax in South Australia. However, SA residents interact with state-level taxes and levies that affect their overall tax position.
- SA does not impose a state income tax. All personal income tax is assessed and collected by the Australian Taxation Office (ATO) under the Income Tax Assessment Acts 1936 and 1997.
- SA employers pay payroll tax on wages above the threshold (currently $1.5 million per year) under the Payroll Tax Act 2009 (SA). SA's payroll tax rate is 4.95%, which is lower than some eastern states.
- SA has unique state taxes that affect tax planning: land tax under the Land Tax Act 1936, stamp duty (now called transfer duty) under the Stamp Duties Act 1923, and the Emergency Services Levy.
- SA is the only state that levies the Emergency Services Levy (ESL) directly on property owners (based on land use and value) to fund the Metropolitan Fire Service, Country Fire Service, and SES.
Tasmania
Primary statute: Income Tax Assessment Act 1997 (Cth)
Income tax in Australia is a federal matter — there is no state income tax in Tasmania. However, Tasmanian residents interact with state-level taxes and levies that affect their overall tax position.
- Tasmania does not impose a state income tax. All personal income tax is assessed and collected by the Australian Taxation Office (ATO) under the Income Tax Assessment Acts 1936 and 1997.
- Tasmanian employers pay payroll tax on wages above the threshold (currently $1.25 million per year) under the Payroll Tax Act 2008 (Tas). Tasmania's payroll tax rate is 4% (rising to 6.1% above $2 million), which has a graduated structure.
- Tasmania's key state taxes include land tax under the Land Tax Act 2000, duty (stamp duty) under the Duties Act 2001, and the fire service levy collected through council rates.
- Tasmania residents who own investment properties must declare rental income in their federal tax returns and can claim deductions for expenses including land tax paid to the State Revenue Office.
Victoria
Primary statute: Payroll Tax Act 2007 (Vic)
There is no state income tax in Victoria — all personal income tax is federal. However, Victoria levies state taxes that affect individuals and businesses differently from other states.
- Victoria does not impose a state income tax. All personal and company income tax is assessed by the Australian Taxation Office.
- Victorian employers pay payroll tax on wages above a threshold (currently $900,000 annually — lower than NSW's $1.2 million threshold), making Victorian payroll tax more broadly applied. The rate is 4.85% (5.85% for large businesses with payroll over $10 million, introduced as a COVID debt levy).
- Victoria's land tax applies to the total taxable value of all land you own in Victoria (excluding your principal place of residence). Rates are progressive and administered by the State Revenue Office (SRO).
- Victoria also has the Windfall Gains Tax (from 1 July 2023), which applies to land that benefits from a government rezoning that increases its value by more than $100,000.
Western Australia
Primary statute: Income Tax Assessment Act 1997 (Cth)
Income tax is a Commonwealth matter, but WA has its own state taxes. WA is notable for having no payroll tax for small businesses under the threshold, no land tax on principal residences (standard), and no state-level income tax.
- WA levies payroll tax at a rate of 5.5% on businesses with total Australian wages exceeding $1 million (as of 2024). A regional discount applies — employers based in regional WA pay a reduced rate of 3.625% on regional wages.
- WA imposes transfer duty (stamp duty) on property transactions under the Duties Act 2008 (WA). Rates range from 1.9% to 5.15% depending on the property value.
- WA imposes land tax on the aggregated unimproved value of all land owned (other than the principal residence and primary production land) as at 30 June each year, under the Land Tax Act 2002 (WA). The tax-free threshold is $300,000 (2024).
- WA derives significant state revenue from mining royalties rather than relying as heavily on stamp duty and land tax as eastern states. This reflects the state's resources-based economy.
Income Tax Filing in other states
Same topic, different jurisdiction. Pick the one that applies to you.