(ATO guidelines)## Who This Guide Is For
TL;DR — If FY2025-26 is your first time filing an Australian tax return, you'll need a Tax File Number (TFN), a myGov account linked to the ATO, and your income records for the year. Most first-timers complete it in under an hour and many receive a refund of $1,000–$3,000.
This guide is for people facing their first Australian tax return — recent graduates, new arrivals, working holiday visa holders, students who just got their first part-time job, or anyone returning to work after years away from the system. We start from "what is a tax return" and end with "submit and wait for your refund."
If you already lodged in a previous year, see our step-by-step myTax guide for the lodgement clicks themselves — this one focuses on what first-timers actually need to know.
Quick Test: Do You Even Need to Lodge?
Most working people in Australia must lodge a tax return. The most common situations that require lodgement are:
- You earned more than $18,200 during FY2025-26 (the tax-free threshold for Australian residents)
- Tax was withheld from your pay even if you earned less (you may get it all back)
- You're a non-resident for tax purposes earning any Australian income
- You're a working holiday visa holder (special tax rates apply from the first dollar)
- You're operating a business or sole trader with any income
- You received government allowances (JobSeeker, Austudy, Youth Allowance, etc.)
Direct answer: Even if you didn't earn enough to owe tax, if your employer withheld PAYG you should still lodge — that's how you get the withheld tax refunded. Use the free FY2025-26 calculator to estimate before you decide.
If you genuinely don't need to lodge (e.g. zero income), you must still tell the ATO by submitting a Non-Lodgement Advice through myTax — otherwise the ATO assumes you owe a return.
Before You Start: First-Timer Setup
You'll need three accounts/numbers before you can lodge:
1. A Tax File Number (TFN)
Your TFN is your personal ATO identifier. It's free, takes ~28 days to receive, and lasts for life. If you don't have one yet:
- Australian residents/citizens: apply online via the ATO website (you'll need a Medicare card or driver licence)
- Foreign passport holders / temporary residents: apply via the ATO online TFN application (you'll need your passport and visa details)
- At Australia Post in person if online options don't suit
Don't have a TFN yet for FY2025-26? Apply now — you can still lodge late, but penalties accrue from 1 November 2026. Without a TFN, employers withhold tax at the highest marginal rate (~47%).
2. A myGov Account
myGov is the Australian government's umbrella login system. You need it to access ATO online services (and Medicare, Centrelink, etc.).
- Sign up at my.gov.au with your email
- Link the Australian Taxation Office as a service (you'll need 2 ATO-acceptable identity documents — Medicare card + driver licence is the easiest combo)
- First-time linking takes ~5 minutes
3. ATO Online Access
Once myGov links to the ATO, you can lodge directly through myTax — the free online tax return system inside the ATO portal.
Step 1: Gather Your Income Records
By mid-August, most of your income will be pre-filled in myTax automatically. Your job is to verify, not retype. Key sources:
| Income type | Where it comes from | When it's pre-filled |
|---|---|---|
| Wages from each employer | Single Touch Payroll (STP) | Late July |
| Bank interest | Banks reporting to ATO | Mid-August |
| Dividends, distributions | Share registries (Computershare, Link, etc.) | Mid-August |
| Government payments | Centrelink reporting | Late July |
| Private health insurance | Insurer reporting | Mid-July |
Until pre-fill is complete, don't rush to lodge. Trying to lodge in early July often leads to errors and amendments.
Step 2: Understand Your Tax Position
Before you click submit, it helps to understand how the calculation works. The basics for FY2025-26:
Tax-free threshold
The first $18,200 of your taxable income is tax-free for Australian residents. If you earned $25,000, only $6,800 is taxed. New arrivals who only worked part of the year are often surprised by how much falls under this threshold — meaning a chunky refund.
FY2025-26 tax brackets (Australian residents)
| Taxable income | Tax rate (Stage 3 cuts apply) |
|---|---|
| $0 – $18,200 | 0% (tax-free) |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001+ | 45% |
How a refund happens
Each pay cycle, your employer withheld PAYG (Pay-As-You-Go) tax based on estimated annual earnings. If you started work mid-year, the system over-estimates your annual income and over-withholds. Lodging "trues up" the calculation:
- Your actual taxable income is calculated
- Your final tax liability is computed
- The withheld PAYG is compared
- The difference is your refund (or amount owing)
Common first-timer outcome: Started work in March → earned only $30,000 to 30 June → employer withheld assuming $80k+ annual rate. Result: refund of $2,000–$4,000.
Medicare Levy and HECS
- Medicare Levy is 2% of taxable income for most residents (with phase-in below $26k)
- HECS/HELP is automatically calculated if you've ever told an employer you have a study debt — it kicks in at $67,000 of repayment income for FY2025-26 at 15c per $1 over the threshold
Low Income Tax Offset (LITO)
If your taxable income is $37,500 or less, you get the full $700 LITO as a tax offset. It phases out from $37,501 to $66,667. This often means people earning under $37,500 pay zero tax overall.
Step 3: Identify What You Can Claim
For first-timers, the most commonly missed deductions are:
- Work-from-home hours — 70¢ per hour for FY2025-26 (just track the hours you genuinely worked from home)
- Uniform and laundry — compulsory work uniforms, branded shirts, protective clothing; up to $150 laundry without receipts
- Tools and equipment under $300 — fully deductible in the year purchased
- Self-education — courses, textbooks, stationery directly related to your current role (not a course for a new career)
- Union and professional fees — fully deductible
- Tax agent fees (if you used one last year) — deductible this year
- Donations to DGR charities — keep receipts
You cannot claim:
- Regular work clothes (suits, plain shoes)
- Coffee, lunch, or commuting from home to your normal workplace
- Personal phone/internet without work-use justification
- Meals at events you attended in personal capacity
For a deeper breakdown for your job, see our work-related expenses guide or use AusTax AI to analyse your receipts.
Step 4: Lodge via myTax
Once pre-fill is complete (mid-August onwards):
The detailed click-through is in our myTax step-by-step guide.
What Could Surprise a First-Timer
You might owe instead of receive a refund. Common causes: multiple jobs (each employer withheld assuming it was your only job), forgot to claim the tax-free threshold on your TFN declaration with your second employer, or earned interest/investment income with no PAYG withheld.
HECS repayment can wipe out your refund. If you have a study debt and earned over $67,000 in repayment income, you owe a percentage even if your withholding was correct — because employers don't automatically include HECS repayments unless you tick the box on your TFN declaration.
Your bank account number must be current. The ATO pays refunds to whatever bank you nominate during lodgement. Wrong account = delayed refund and a phone call to fix.
Lodgement deadline is 31 October. Late lodgement starts at around $330 in penalties (per 28 days, up to 5 × $330). The deadline applies even if you don't owe tax — including refund returns.
Common First-Timer Mistakes
| Mistake | Why It's a Problem | Fix |
|---|---|---|
| Forgetting to claim the tax-free threshold on a second job's TFN form | Both jobs use full withholding rates → too little tax taken out, end up owing | Update TFN declaration with the lower-paying job; lodge as normal — over-withheld primary job balances out |
| Filing too early (1-15 July) before pre-fill is ready | Missing income data → ATO sends amendment notice later | Wait until mid-August or you have all your statements |
| Claiming personal expenses as work-related | ATO can audit up to 5 years back | Only claim direct work-earning expenses; if unsure, leave it off |
| Not tracking work-from-home hours | Lose easy deductions worth $300–$700 | Use a phone/calendar log going forward — not retrospectively guessing |
| Forgetting to declare bank interest | Pre-fill misses term deposits and foreign accounts | Check every account that paid interest, even small amounts |
| Assuming "no refund expected = don't need to lodge" | Late penalties still apply if you were required to lodge | If you're unsure, lodge anyway — it's free and quick |
After You Lodge
Within minutes you'll get a lodgement confirmation email. Within ~2 weeks you'll receive a Notice of Assessment (NoA) showing your final result.
If a refund is due, it's deposited to your nominated bank account on the date in the NoA. If tax is owed, the NoA shows the due date — usually 21 November or earlier. Pay via BPAY, credit card, or direct debit through the ATO portal.
Keep your NoA. You may need it later for things like home loans (proof of income) or visa applications.
Records to Keep
The ATO requires you to keep records for 5 years from the date you lodged. That means receipts for FY2025-26 should be kept until 31 October 2031.
A scanned receipt or photo on your phone is sufficient — the ATO accepts digital copies. Tools like AusTax AI auto-archive receipts year-round and pre-format them for tax time.
*Disclaimer: This is general information only and does not constitute personal tax advice. Consult a registered tax agent for advice tailored to your specific situation. Always verify against the latest ATO guidelines at ato.gov.au.*
Quick Checklist for Your First Tax Return
- TFN obtained and noted somewhere safe
- myGov account linked to the ATO
- All employer income statements pre-filled or manually verified
- Bank interest and government payments verified
- Work-related deductions identified and supported by records
- Tax-free threshold and HECS indicators correctly set
- Bank account for refund is current
- Estimate run through a free calculator before lodging
- Lodged before 31 October 2026
Need Help With Your Tax Return?
Complex situation? a registered tax agent (see the directory) Our partner agents review every detail for accuracy and compliance.
*Disclaimer: This guide provides general information about lodging your first Australian tax return. It is not personal tax advice. Your individual circumstances may require advice from a registered tax agent. AusTax AI is not a registered tax agent — our complete service connects you with TPB Registered Tax Agents.*