How Much Tax Do You Pay in Australia: Guide for Casual and Part Time Jobs

If you’ve just landed your first casual job in Australia or you’re juggling two part-time gigs while studying, there’s one question that’s probably keeping you up at night: how much of your hard-earned pay is going to disappear in tax?

Here’s the truth that might surprise you: casual and part-time workers pay exactly the same tax rates as full-time employees. There’s no special “casual worker tax” that takes a bigger chunk of your pay. The 25% casual loading you receive? Yes, it’s taxable income, but it doesn’t mean you’re taxed at 25%.

And here’s even better news: if you’re earning around $22,000 or less per year, you’ll likely pay $0 in tax when you lodge your tax return, thanks to something called the Low Income Tax Offset (LITO). Most casual workers earning under $45,000 actually get money back at tax time.

This guide cuts through the confusion. We’ll show you exactly how much tax you’ll pay based on real examples, explain why your first paycheck might look different from what you expected, and reveal the tax changes happening in 2026 and 2027 that will put more money back in your pocket.

Whether you’re working at Coles, serving coffee at a cafe, or doing warehouse shifts on weekends, you’ll know exactly where your money is going and how to get the most back.

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TL;DR: Quick Answers

• Same tax rates: Casual workers pay identical tax rates to permanent employees
• Tax-free threshold: First $18,200 is tax-free for everyone
• Effective threshold: With LITO, you effectively pay $0 tax up to $22,575
• Casual loading: The 25% loading IS taxable but doesn’t change your tax rate
• Multiple jobs: Only claim tax-free threshold from one employer
• Superannuation: You get 12% super (from July 2025) on top of your wages
• 2026 tax cuts: Tax rate drops from 16% to 15% (July 2026), then 14% (July 2027)
• Refunds: Most casual workers earning under $45,000 get tax refunds

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Understanding Tax Basics for Casual and Part-Time Workers

Let’s start with the most important fact: Australia doesn’t have different tax rates based on your employment type. Whether you’re permanent, casual, part-time, or full-time, everyone pays tax using the same progressive system.

The Progressive Tax System Explained Simply

Think of your income like water filling up a series of buckets. Each bucket represents a tax bracket. The first bucket (up to $18,200) has a hole in the bottom, so no tax stays there. The second bucket catches some tax, the third bucket catches more, and so on.

You only pay the higher tax rates on the income that spills into those higher buckets, not on your entire income.

Current Tax Rates for 2025-26

Here’s what you’re actually paying right now:

Income Range	Tax Rate	What This Means
$0 – $18,200	0%	Completely tax-free
$18,201 – $45,000	16%	Only on income above $18,200
$45,001 – $135,000	30%	Only on income above $45,000
$135,001 – $190,000	37%	Only on income above $135,000
$190,001+	45%	Only on income above $190,000

Plus, everyone pays a 2% Medicare Levy on their taxable income (with some low-income exemptions).

What's Changing in 2026 and 2027

Good news: tax cuts are coming that will save you money.

From 1 July 2026: The 16% tax rate drops to 15%
From 1 July 2027: It drops again to 14%

This means if you earn $40,000, you’ll save:

• $218 per year from July 2026
• Another $218 per year from July 2027
• Total: $436 per year better off compared to 2024-25

These changes apply automatically. Your employer will withhold less tax from each pay, and you’ll see slightly higher refunds when you lodge your tax return.

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How Casual Loading Affects Your Tax

This is where most people get confused. You’ve probably heard that casual workers get a 25% loading on top of their base pay rate. And yes, that entire amount is taxable income.

Breaking Down Casual Loading

Let’s say a permanent employee earns $20 per hour. As a casual worker doing the same job, you’d earn:

Base rate: $20/hour
Casual loading (25%): $5/hour
Total pay: $25/hour

The $25 per hour is your gross income. This is what gets reported to the tax office, and it’s what your tax is calculated on.

Does This Mean You Pay More Tax?

No. You pay tax on a higher amount of income, but not at a higher rate.

Common Confusion:
“I get 25% casual loading, so I must be paying 25% tax!”

Reality:
Your casual loading increases your total taxable income. Your tax rate depends on your total annual income, not your employment type.

Example:

If you earn $30,000 per year (including casual loading):

• First $18,200: $0 tax
• Remaining $11,800: 16% tax = $1,888
• Total tax before LITO: $1,888

The casual loading didn’t create a special tax. It just meant your total income was higher, so you paid tax on that higher amount using the same rates as everyone else.

You can read more about casual vs part-time vs full-time employment to understand how these work arrangements differ beyond just tax.

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The Low Income Tax Offset: Your Secret Weapon

Here’s where things get interesting. Most guides stop at explaining tax rates, but they miss the most important part for casual workers: LITO.

The Low Income Tax Offset (LITO) is a tax offset that can reduce your tax bill all the way down to $0. It’s automatic, non-refundable, and absolutely crucial for understanding your real tax situation.

How LITO Works

If you earn $37,500 or less: You get the full $700 offset
Between $37,501 and $45,000: $700 minus 5 cents for every $1 over $37,500
Between $45,001 and $66,667: $325 minus 1.5 cents for every $1 over $45,000
Over $66,667: No LITO

The Magic Number: ,575

When you combine the tax-free threshold ($18,200) with the maximum LITO ($700), you effectively pay zero tax up to approximately $22,575.

Here’s why:

If you earn exactly $22,000:

• Income: $22,000
• Tax on amount above $18,200: ($22,000 – $18,200) × 16% = $608
• LITO applied: -$700
• Net tax payable: $0

Since LITO can’t reduce your tax below zero, you keep the full $608 offset. Any tax your employer withheld from your pay comes back to you as a refund.

Real Example: Student Working Part-Time

Sarah works at a café 15 hours per week:

• Hourly rate: $22 base × 1.25 loading = $27.50/hour
• Weekly income: 15 hours × $27.50 = $412.50
• Annual income: $412.50 × 52 weeks = $21,450

Sarah’s tax calculation:

• Tax on $21,450: $524
• LITO applied: -$700
• Tax payable: $0

Sarah gets back every dollar of tax her employer withheld during the year.

LITO for Higher Earners

Even if you earn more than $22,575, LITO still helps:

Example: Earning $40,000

• Tax calculated: $3,488
• LITO: -$575
• Actual tax: $2,913
• Medicare Levy: $800
• Total: $3,713

Without LITO, you’d pay $4,288. That’s $575 saved just from LITO.

Important: LITO is calculated automatically when you lodge your tax return. You don’t need to apply for it or even mention it. The tax office does it for you.

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Tax Withholding: What Happens to Your Paycheck

Every time you get paid, your employer doesn’t just hand over your full earnings. They’re required by law to withhold tax and send it to the Australian Taxation Office (ATO) on your behalf. This is called PAYG (Pay As You Go) withholding.

Why Your First Paycheck Looks Smaller Than Expected

When you calculated your hourly rate and worked out how much you’d earn, you probably thought “Great, $500 for the week!” Then payday arrives and only $450 hits your account.

That’s PAYG withholding in action. Your employer used the ATO’s tax tables to estimate how much tax you’ll owe for the year and withheld a portion from each pay.

The Critical TFN Declaration Decision

When you start any job, you fill out a Tax File Number Declaration. There’s one question on this form that dramatically affects your take-home pay:

“Do you want to claim the tax-free threshold from this payer?”

Your answer determines how much tax gets withheld from each paycheck.

How Withholding Works

If you answer YES (claiming tax-free threshold):

Your employer’s payroll system assumes this is your only job and that you’ll earn the first $18,200 tax-free. They withhold very little or no tax on your first dollars earned.

Weekly earnings: $500
Tax withheld (with threshold): Approximately $39

If you answer NO (not claiming threshold):

Your employer assumes you have another job where you’re already using the threshold. They withhold tax from your first dollar of earnings.

Weekly earnings: $500
Tax withheld (without threshold): Approximately $96

That’s a difference of $57 per week in your pocket, or about $248 per month.

The Golden Rule for Multiple Jobs

You can only claim the tax-free threshold from ONE employer at a time.

If you claim it from multiple employers, you’ll have too little tax withheld during the year. Come tax time, instead of getting a refund, you’ll owe money.

Best practice:

• Claim the threshold from your highest-paying job
• Answer NO for all other jobs
• This balances out over the year

Want to understand more about managing multiple income sources? Check out our guide on tax basics for side hustles and online income.

Sample Withholding Amounts

Here’s what you can expect to have withheld from various weekly earnings:

Weekly Earnings	With Tax-Free Threshold	Without Threshold	Difference
$300	$0	$48	$48
$400	$20	$72	$52
$500	$39	$96	$57
$600	$63	$120	$57
$700	$91	$144	$53
$800	$119	$168	$49

These are approximate amounts and can vary based on your employer’s payroll system and when you’re paid.

What If Too Much Tax Is Being Withheld?

If you’re earning under $25,000 per year and your employer is withholding tax every pay, you’ll get most or all of it back when you lodge your tax return.

However, if you want more money in your pocket now rather than waiting for a refund, you can request your employer to withhold less by completing a Withholding declaration form. Most people don’t bother with this since the refund acts like forced savings.

What If Not Enough Tax Is Being Withheld?

This happens when you have multiple jobs and claim the threshold from more than one employer, or if you forget to tell your second employer not to use the threshold.

You can request additional withholding by filling out the same Withholding declaration form and specifying an extra amount to be withheld each pay. This prevents a nasty surprise tax bill.

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Superannuation for Casual Workers

Good news: casual workers are entitled to superannuation just like everyone else. This is money on top of your wages that goes into a retirement savings account.

Current Super Rate: 12%

As of 1 July 2025, employers must contribute 12% of your ordinary time earnings into your nominated super fund. This increased from 11.5% and is the final step in a gradual increase that started years ago.

Who Gets Super?

You’re entitled to super if:

• You’re 18 or older (any hours of work)
• You’re under 18 and work more than 30 hours per week
• You earn at least $450 per month from a single employer

Important: The $450 threshold is per employer, not total. If you work for three different places and earn $400 from each, none of them have to pay you super.

How It Works

Super is paid on top of your wages, not taken out of them.

Example:

You work 80 hours in a month at $25/hour:

• Your gross pay: 80 × $25 = $2,000
• Your super: 12% of $2,000 = $240
• Your employer pays: $2,000 to you + $240 to your super fund

That $240 doesn’t come out of your $2,000. It’s additional.

Super Payment Timing

Employers must pay super at least quarterly:

• July-September: Due by 28 October
• October-December: Due by 28 January
• January-March: Due by 28 April
• April-June: Due by 28 July

From 1 July 2026, “payday super” is expected to be introduced, meaning super will be paid every time you get paid, not quarterly. This makes it easier to track.

Why Super Matters for Casual Workers

Even if you’re only working casual jobs during your studies, that super adds up:

Example: Three years of casual work

• Average annual earnings: $20,000
• Annual super contribution: $2,400
• After 3 years: $7,200 (plus investment earnings)

If you’re an international student, you can claim this back through the Departing Australia Superannuation Payment (DASP) when you leave Australia permanently.

Choosing Your Super Fund

When you start a new job, your employer should give you a Superannuation Standard Choice Form. This lets you nominate which super fund you want your contributions paid into.

If you don’t choose, your employer will pay into their default fund. It’s worth choosing your own fund so all your super from different jobs goes into one place, making it easier to track and reducing fees.

Learn more about what superannuation is and why international students should care.

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Real Examples: How Much Tax You'll Actually Pay

Theory is nice, but let’s look at real scenarios that match what casual and part-time workers actually experience.

Example 1: University Student Working Part-Time

Meet James:

• Works at Woolworths 15 hours/week during semester
• 25 hours/week during holidays (12 weeks per year)
• Base rate: $22/hour
• Casual loading: 25%
• Actual hourly rate: $27.50

Annual income calculation:

• 40 weeks (semester): 15 hours × $27.50 = $412.50/week = $16,500
• 12 weeks (holidays): 25 hours × $27.50 = $687.50/week = $8,250
• Total annual income: $24,750

Tax breakdown:

• Tax on $24,750: $1,048
• LITO: -$700
• Tax payable: $348
• Medicare Levy: $495
• Total: $843

Take-home after tax: $23,907 (96.6% of gross income)

Outcome: James gets most of his money. His employer probably withheld around $1,200 during the year, so he’ll get about $357 back as a refund.

Example 2: Student with Two Casual Jobs

Meet Priya:

• Main job (café): $18,000/year (claims threshold)
• Second job (tutoring): $8,000/year (doesn’t claim threshold)
• Total income: $26,000

Tax calculation:

• Tax on $26,000: $1,248
• LITO: -$700
• Tax payable: $548
• Medicare Levy: $520
• Total: $1,068

What happens during the year:

Job 1 (café): Withholds about $200 in tax
Job 2 (tutoring): Withholds about $1,280 in tax
Total withheld: $1,480

At tax time: Priya owes $1,068 but has paid $1,480, so she gets $412 back.

Key lesson: Even though her second job withheld a lot of tax, it balances out when she lodges her return. The LITO saves her $700.

Example 3: Working Near Full-Time Hours Casually

Meet David:

• Warehouse casual worker, 35-40 hours per week
• Average 38 hours × 52 weeks = 1,976 hours/year
• Hourly rate: $28/hour (including casual loading)
• Annual income: $55,328

Tax calculation:

• First $18,200: $0
• Next $26,800: 16% = $4,288
• Remaining $10,328: 30% = $3,098
• Total tax: $7,386
• Medicare Levy: $1,107
• LITO: -$170
• Total payable: $8,323

Take-home: $47,005 (85% of gross income)

David earns more, so he keeps a smaller percentage due to higher tax brackets. But the LITO still saves him $170.

Example 4: Very Low Income Casual Worker

Meet Emma:

• Works casually at a library, 8 hours per week
• $27/hour
• Works 45 weeks (takes holidays unpaid)
• Annual income: 8 × $27 × 45 = $9,720

Tax calculation:

• Income below threshold: $0 tax
• $0 Medicare Levy (below the levy threshold of $26,000)

Outcome: Emma pays zero tax. If her employer withheld anything, she gets it all back. She also doesn’t pay the Medicare Levy since her income is below $26,000.

Example 5: Approaching the ,000 Threshold

Meet Tom:

• Retail casual worker, varies hours
• Annual income: $44,000

Tax calculation:

• First $18,200: $0
• Remaining $25,800: 16% = $4,128
• Tax: $4,128
• LITO: -$375
• Tax after LITO: $3,753
• Medicare Levy: $880
• Total: $4,633

Take-home: $39,367 (89.5% of gross income)

Tom is just below the $45,000 threshold, so all his above-threshold income is still taxed at only 16%. Once he earns above $45,000, that extra income gets taxed at 30%, not 16%.

Summary Table: Tax by Income Level

Annual Income	Tax Before LITO	LITO Applied	Tax After LITO	Medicare Levy	Total	Take-Home %
$15,000	$0	$0	$0	$0	$0	100%
$20,000	$288	-$288	$0	$0	$0	100%
$25,000	$1,088	-$700	$388	$0*	$388	98.4%
$30,000	$1,888	-$700	$1,188	$600	$1,788	94%
$40,000	$3,488	-$575	$2,913	$800	$3,713	90.7%
$50,000	$6,188	-$250	$5,938	$1,000	$6,938	86.1%

*Medicare Levy exemption applies when earning under $26,000 (for singles)

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Multiple Jobs and Second Job Tax

If you’re working more than one job, you need to understand how this affects your tax situation. Getting this wrong is one of the most common mistakes casual workers make.

The Core Problem

Australia’s tax system is designed around the idea that you have one employer. But many students and casual workers have two, three, or even more jobs at once.

Each employer only knows what they’re paying you. They don’t know about your other income. So each employer calculates PAYG withholding based only on what they see.

The Tax-Free Threshold Trap

Remember, you can only use the $18,200 tax-free threshold once per year, not once per employer.

Wrong approach:
Claiming threshold from both Job A ($15,000) and Job B ($12,000)

What happens:

• Job A withholds assuming you’ll earn $18,200 tax-free from them
• Job B also withholds assuming you’ll earn $18,200 tax-free from them
• Total income: $27,000
• Total tax withheld: Maybe $400
• Tax actually owed: About $1,400
• You owe at tax time: $1,000

Correct approach:
Claim threshold from Job A, but NOT from Job B

What happens:

• Job A withholds minimal tax (it’s your main job)
• Job B withholds tax from the first dollar (treating all that income as above the threshold)
• Total withheld: About $1,500
• Tax actually owed: $1,400
• You get refunded: $100

How to Set It Up Correctly

When you start a new job:

Your first or highest-paying job:

• Answer YES to “Do you want to claim the tax-free threshold?”

Any additional jobs:

• Answer NO to claiming the tax-free threshold
• Your employer will withhold tax as if every dollar is above the threshold

This means your second job’s pay will be smaller each week because more tax is withheld, but it balances out at tax time.

Real Scenario: Two Part-Time Jobs

Sarah’s situation:

• Job 1 (Café): $350/week = $18,200/year (claims threshold)
• Job 2 (Retail): $250/week = $13,000/year (doesn’t claim threshold)

During the year:

Café pays: $350 minus $5 tax = $345 take-home
Retail pays: $250 minus $40 tax = $210 take-home
Weekly take-home: $555

At tax time:

• Combined income: $31,200
• Tax owed: $2,080
• LITO: -$700
• Medicare: $624
• Total owed: $2,004

Tax withheld during year:

• Café: $5 × 52 = $260
• Retail: $40 × 52 = $2,080
• Total withheld: $2,340

Refund: $336

Even though the retail job withheld a lot of tax, Sarah gets some back because her total tax bill is less than what was withheld.

What If You Forgot?

If you accidentally claimed the threshold from multiple employers, don’t panic. Just be prepared to pay some tax when you lodge your return.

You can also proactively ask one employer to withhold extra tax using a Withholding declaration form. This prevents the shock of owing money at tax time.

Switching Between Jobs

If you leave one job and start another, you can transfer your tax-free threshold claim to the new job. Just make sure you’re not claiming it from two places at the same time.

When you leave a job, that employer stops paying you. Your threshold isn’t “locked” with them. You can use it at your next job.

For more information on understanding your payslip and how tax is calculated, check out our detailed breakdown.

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Tax Deductions Casual Workers Can Claim

One of the best parts about working in Australia is that you can claim tax deductions for work-related expenses. This reduces your taxable income, which means you pay less tax.

But here’s the catch: the expense must be directly related to earning your income, and you must have records to prove it.

Work-Related Clothing and Uniforms

You CAN claim:

• Compulsory uniforms with your company logo
• Occupation-specific clothing (chef whites, hi-vis vests, steel-cap boots)
• Protective clothing (gloves, safety glasses)
• Laundry costs for these items ($1 per load without receipts, or actual costs with receipts)

You CANNOT claim:

• Regular clothes, even if your employer says “wear black pants and white shirt”
• Everyday shoes
• General grooming (haircuts, makeup)
• Dry cleaning of normal clothes

Example:
If you work at Bunnings and need steel-cap boots ($120), plus you wash your uniform weekly ($1 × 52 weeks = $52), you can claim $172. At a 16% tax rate, that saves you about $27.

Work-Related Travel

You CAN claim:

• Travel between two different jobs on the same day
• Travel from your regular workplace to a different work location
• Work-related conferences or training

You CANNOT claim:

• Normal travel from home to work
• Travel from home to your regular workplace

Example:
If you work at a café in the morning and then drive to a tutoring job in the afternoon, you can claim the car expenses for that trip between jobs.

Tools and Equipment

You CAN claim:

• Tools required for your job (up to $300 immediate deduction, over $300 depreciated)
• Work-related software
• Protective equipment

You CANNOT claim:

• Items your employer provides
• Items not specific to your work

Phone and Internet

If you use your phone or internet for work purposes, you can claim the work-related portion.

Example:
Your phone bill is $50/month. You use it 30% for work (checking rosters, work calls). You can claim $50 × 30% × 12 months = $180 per year.

You need to keep a diary for a 4-week period showing your work use to justify your percentage.

Self-Education

If you’re studying a course that directly relates to your current job, you can claim expenses like:

• Textbooks
• Stationery
• Travel to and from classes
• Student union fees
• Decline in value of computer or laptop

Important: The course must relate to your current employment, not a future career. If you’re working at Coles and studying accounting, you generally can’t claim the accounting course unless you work in Coles’ accounting department.

Home Office Expenses

If you’re required to work from home (rare for casual jobs, but possible for some roles), you can claim:

• A portion of electricity for lighting, heating, cooling
• Phone and internet
• Computer equipment depreciation
• Office furniture depreciation

Use the ATO’s fixed rate method (67 cents per hour) or calculate actual costs.

Union Fees and Professional Memberships

If you pay union fees or memberships to professional associations related to your work, these are fully deductible.

What Records Do You Need?

For any deduction you claim:

• Under $300 total: You can use bank statements or payslips showing the expense
• Over $300 total: You need actual receipts

Keep these records for 5 years from when you lodge your return.

Pro tip: Take photos of receipts as soon as you get them. Store them in a folder on your phone or in cloud storage. Many people lose paper receipts, and without them, you can’t claim.

Claiming Deductions at Tax Time

When you lodge your tax return (either through myTax online or via a tax agent), there’s a section for work-related deductions. You enter the total amount for each category.

The tax office doesn’t need receipts when you lodge, but they can ask for them later if they audit your return. If you can’t provide receipts, they’ll disallow those deductions and you may face penalties.

For a comprehensive list of what students and casual workers can claim, read our guide on common tax deductions for students and casual workers.

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Do You Need to Lodge a Tax Return?

This is one of the most asked questions from casual workers, especially those earning below the tax-free threshold.

When You MUST Lodge

You must lodge a tax return if:

• Your income was more than $18,200
• Tax was withheld from your pay (even if you earned less than $18,200)
• You had multiple jobs
• You earned income from other sources (investments, side business)
• You have a HECS/HELP debt

When You Might Not Need to Lodge

You may not need to lodge if:

• You earned less than $18,200
• AND no tax was withheld from your pay
• AND you had no other income

If you’re unsure, use the ATO’s “Do I need to lodge?” online tool, or just lodge anyway. There’s no penalty for lodging when you don’t need to, but there are penalties for not lodging when you should.

Why You Should Lodge Even If Not Required

If your employer withheld any tax from your pay but your income was below the threshold, you’ll only get that money back by lodging a return.

Example:

You earned $16,000 and your employer withheld $200 in tax. Since you’re below the threshold, you owe $0 tax. Lodge your return = get $200 back. Don’t lodge = lose $200 forever.

When to Lodge

The tax return deadline is 31 October each year for the previous financial year (1 July to 30 June).

Example: For the 2025-26 financial year (1 July 2025 to 30 June 2026), you must lodge by 31 October 2026.

If you use a registered tax agent, they usually have until the following May to lodge on your behalf.

How to Lodge

Most people lodge online through myTax on the ATO website (accessed via myGov).

You’ll need:

• Your TFN (Tax File Number)
• A myGov account linked to the ATO
• Your payment summaries or income statements (available online from mid-July)

The system is mostly pre-filled. Your employer reports your income directly to the ATO, so the amounts usually appear automatically. You just need to check they’re correct and add any deductions.

For a step-by-step walkthrough, read our guide on how to lodge your first tax return in Australia online.

Expected Refund Timeline

If you lodge online and have no issues with your return:

• Average time: 2 weeks to receive your refund
• Money goes to: Your nominated bank account

If you owe money, you’ll need to pay by the date shown on your notice of assessment (usually within 2 weeks).

What About Payment Summaries?

You don’t receive paper payment summaries anymore. Instead, your employer reports your income directly to the ATO throughout the year. This information appears in your myGov account from mid-July.

If your employment ended during the year, you might receive a payment summary at the time you finish, but it’s not required for lodging your return.

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Stage 3 Tax Cuts: What's Changing in 2026 and 2027

If you’re working casual or part-time jobs over the next few years, you’re going to benefit from legislated tax cuts that put more money in your pocket.

What Are the Stage 3 Tax Cuts?

These are changes to Australia’s income tax rates that were legislated years ago and are being rolled out in stages. The changes specifically target low and middle-income earners.

For casual workers, the most relevant change is the reduction of the tax rate for income between $18,201 and $45,000.

The Timeline

Currently (2025-26 financial year):
Income from $18,201 to $45,000 is taxed at 16%

From 1 July 2026:
This rate drops to 15%

From 1 July 2027:
It drops again to 14%

What This Means in Dollars

Let’s break down exactly how much money you’ll save:

If you earn $45,000 or more:

• 2026-27: Save $268 per year
• 2027-28: Save another $268 per year
• Total ongoing savings: $536 per year compared to 2024-25

If you earn less than $45,000:

The savings are proportional to your income above $18,200:

Income	2025-26 Tax	2026-27 Tax	2027-28 Tax	Total Savings by 2027-28
$25,000	$1,088	$1,020	$952	$136
$30,000	$1,888	$1,770	$1,652	$236
$35,000	$2,688	$2,520	$2,352	$336
$40,000	$3,488	$3,270	$3,052	$436
$45,000	$4,288	$4,020	$3,752	$536

*These figures don’t include LITO or Medicare Levy

How You'll Notice the Difference

The tax cuts happen automatically. You don’t need to do anything.

During the year:
Your employer will withhold slightly less tax from each pay. You’ll see a small increase in your take-home pay.

At tax time:
When you lodge your return, your tax bill will be calculated using the new lower rates. This means larger refunds for most casual workers.

Real Example: How the Cuts Help

Meet Liam:

• Earns $38,000 per year from casual work
• Claims the tax-free threshold
• No other income

2025-26 tax year:

• Tax: $3,168
• LITO: -$650
• After LITO tax: $2,518
• Medicare: $760
• Total: $3,278

2026-27 tax year:

• Tax: $2,970 (thanks to 15% rate)
• LITO: -$650
• After LITO tax: $2,320
• Medicare: $760
• Total: $3,080

Savings: $198

2027-28 tax year:

• Tax: $2,772 (thanks to 14% rate)
• LITO: -$650
• After LITO tax: $2,122
• Medicare: $760
• Total: $2,882

Savings: $396 compared to 2025-26

That’s nearly $400 per year that stays in Liam’s pocket just because of the tax cuts.

Combined with LITO

The really good news? These tax cuts work on top of LITO, not instead of it.

So if you’re a low-income earner, you benefit from:

1. The lower tax rate (14% instead of 19%)
2. The full $700 LITO

This means the effective tax-free threshold in 2027-28 will be even better than today.

Why These Cuts Matter for Casual Workers

Most casual workers earn between $15,000 and $45,000 per year. This is exactly the income range that benefits most from these cuts.

If you’re planning to work while studying over the next few years, factor in that your take-home pay will gradually increase just from these tax changes, even if your hourly rate stays the same.

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Common Tax Mistakes and How to Avoid Them

After helping hundreds of casual workers understand their tax obligations, these are the mistakes that keep coming up. Avoid them and you’ll save yourself money and stress.

Mistake 1: Claiming the Tax-Free Threshold from Multiple Employers

The problem:
You start a second job and forget to update your TFN declaration. Both employers withhold tax as if you’re using the threshold.

The result:
You owe money at tax time because not enough tax was withheld.

The fix:
As soon as you start a second job, complete a new TFN declaration and mark that you do NOT want to claim the tax-free threshold. Only one employer should be using it.

Mistake 2: Not Keeping Records of Work Expenses

The problem:
You buy steel-cap boots for work but throw away the receipt. At tax time, you want to claim them but have no proof.

The result:
The ATO disallows your claim. You pay more tax than necessary.

The fix:
Photograph every receipt immediately. Create a folder in your phone called “Tax Receipts” and store them there. Back up to cloud storage.

Mistake 3: Forgetting About LITO When Calculating Tax

The problem:
You earn $20,000 and calculate that you owe tax. You panic and think you’ll owe money at tax time.

The result:
Unnecessary stress and worry.

The fix:
Remember the magic number: $22,575. If you earn less than this, LITO will likely bring your tax to $0. Don’t stress until you actually lodge and see the real calculation.

Mistake 4: Not Lodging When Tax Was Withheld

The problem:
You earned $17,000 (below the threshold) so you think you don’t need to lodge. But your employer withheld $300 in tax throughout the year.

The result:
That $300 stays with the ATO forever. You never get it back.

The fix:
If any tax was withheld, always lodge. This is how you get your money back.

Mistake 5: Claiming Non-Deductible Expenses

The problem:
You claim your regular black pants and white shirt that you wear to work at a café. Or you claim the cost of driving from home to work.

The result:
The ATO audits your return and disallows these claims. You have to pay back the tax benefit plus potentially interest and penalties.

The fix:
Only claim expenses that are clearly work-related and specific to your job. When in doubt, don’t claim it. A few dollars of deductions aren’t worth the risk of an audit.

Mistake 6: Using the Wrong Tax Resident Status

The problem:
You’re an international student but you lodge as a non-resident, or vice versa.

The result:
Non-residents don’t get the tax-free threshold or LITO. You pay way more tax than you should.

The fix:
Most international students who’ve lived in Australia for more than 6 months are tax residents. Check the ATO’s residency tool if you’re unsure. Read our detailed guide on resident vs non-resident tax status.

Mistake 7: Missing the Lodgment Deadline

The problem:
You forget to lodge by 31 October.

The result:
Failure to lodge penalties start at $330 and increase the longer you delay.

The fix:
Set a reminder on your phone for September. Lodge early (from mid-July onwards). Don’t wait until October.

Mistake 8: Not Updating Details When Changing Jobs

The problem:
You leave one casual job and start another, but forget to give your new employer your TFN or super details.

The result:
Your employer withholds tax at 47% (the no-TFN rate) or doesn’t pay super.

The fix:
Within your first week at any new job, make sure you’ve completed all the required forms: TFN declaration and super choice form.

Mistake 9: Thinking Casual Loading Means Higher Tax Rate

The problem:
You see you get 25% loading and think you’re paying an extra 25% in tax.

The result:
Confusion and potentially making bad job decisions.

The fix:
Remember: casual loading increases your income but doesn’t change your tax rate. You’re still taxed using the same brackets as everyone else.

Mistake 10: Relying on Your Employer to Get Everything Right

The problem:
You assume your employer is withholding the correct amount of tax and paying the right super.

The result:
Months or years later you discover you’re owed money or your super wasn’t paid properly.

The fix:
Check every payslip. Verify that:

• Your hourly rate is correct
• The right amount of tax is withheld
• Super appears (if you’re eligible)
• Your hours are accurately recorded

If something looks wrong, speak to your employer immediately. For serious issues, contact Fair Work or the ATO.

Learn more about what to do if your employer underpays you.

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Key Takeaways and Action Steps

You’ve made it through a lot of information. Here’s what matters most:

Remember These Core Facts

1. You pay the same tax rates as everyone else
   Casual, part-time, full-time – everyone uses the same progressive tax system.
2. The effective tax-free threshold is $22,575
   Thanks to LITO, you’ll likely pay $0 tax if you earn less than this amount.
3. Casual loading is taxable
   It’s part of your gross income, not a separate tax or penalty.
4. Only claim threshold once
   If you have multiple jobs, only claim the tax-free threshold from one employer.
5. 12% super on top of wages
   From July 2025, your employer pays 12% of your earnings into super, in addition to your wages.
6. Tax cuts are coming
   From July 2026, your tax rate drops from 16% to 15%, then to 14% from July 2027.
7. Most casual workers get refunds
   If you earn under $45,000, you’ll almost certainly get money back at tax time.

Action Steps: What to Do Right Now

If you’re starting a new job:

• ✅ Complete your TFN declaration correctly
• ✅ Nominate your super fund
• ✅ Decide whether this is your main job (claim threshold) or secondary job (don’t claim)
• ✅ Check your first payslip carefully

If you’re currently working:

• ✅ Review your last payslip – is tax being withheld correctly?
• ✅ Start keeping records of work-related expenses
• ✅ Create a folder (digital or physical) for tax receipts
• ✅ Check your super is being paid quarterly

If you have multiple jobs:

• ✅ Confirm you’re only claiming threshold from one employer
• ✅ Consider if you need additional withholding to avoid owing tax
• ✅ Track your total annual income

Before 31 October each year:

• ✅ Lodge your tax return
• ✅ Claim all legitimate deductions
• ✅ Make sure your details (bank account, address) are correct

Final Thoughts

Understanding how tax works as a casual or part-time worker isn’t just about compliance. It’s about making sure you’re not paying more than you need to, claiming what you’re entitled to, and planning your finances properly.

Yes, tax can seem complicated. But the core concept is simple: you pay tax on your income using the same rates as everyone else, LITO gives you up to $700 back, and most casual workers end up getting refunds.

If you earn under $30,000, you’re in a great tax position. With the tax-free threshold and LITO, you’ll keep most of your money.

If you earn between $30,000 and $45,000, you’ll pay some tax, but not much. The upcoming tax cuts will save you hundreds per year.

And if you earn more than $45,000 in casual work, you’re doing well financially. Yes, you’ll pay more tax, but you’re also earning more money.

The tax system isn’t designed to punish casual workers. It’s actually quite generous to low-income earners through LITO and the tax-free threshold. Make sure you understand your obligations, keep good records, and lodge your return on time every year.

Want to learn more about managing your finances as a student or casual worker in Australia? Check out our guide on how much money you need per month as a student or explore our complete checklist for tax and work-related documents.

Frequently Asked Questions (FAQ)

Basic Tax Questions

Q: Do casual workers pay more tax than permanent employees in Australia?

No. Casual workers pay exactly the same tax rates as permanent employees. Australia has one progressive tax system that applies to all workers regardless of employment type. The confusion often comes from casual loading, but this just increases your total income – it doesn’t create a higher tax rate.

Q: Is the 25% casual loading taxed?

Yes, casual loading is fully taxable. It’s part of your gross income and gets included when calculating your tax. If you earn $25/hour (including a 25% loading on a $20 base rate), you pay tax on the full $25, not just the $20 base.

Q: What is the tax-free threshold in Australia?

The tax-free threshold is $18,200. This means the first $18,200 you earn in a financial year is not taxed at all. Everyone gets this threshold, whether you’re casual, part-time, or full-time. However, you can only claim it from one employer if you have multiple jobs.

Q: Can I really earn up to $22,575 tax-free?

Effectively, yes. While the official threshold is $18,200, the Low Income Tax Offset (LITO) can reduce your tax bill to $0 if you earn up to approximately $22,575. This is because LITO provides up to $700 in tax offset, which covers the tax you’d normally pay on income between $18,200 and $22,575.

Q: How much tax will I pay if I earn $20,000 as a casual worker?

If you earn $20,000 per year and claim the tax-free threshold, you’ll likely pay $0 in tax after LITO is applied. Here’s why: your tax on $20,000 would be $288, but LITO gives you a $700 offset, bringing your tax to $0. You won’t pay Medicare Levy either since you’re under $26,000. Any tax your employer withheld during the year will be refunded to you.

Q: Do I pay tax if I earn less than $18,200?

No, you don’t pay income tax if you earn less than $18,200 (assuming you’re claiming the tax-free threshold). However, your employer might still withhold small amounts from your pay. You’ll get this back when you lodge your tax return.

Q: What’s the difference between tax withheld and tax owed?

Tax withheld is what your employer takes from your pay each week/fortnight and sends to the ATO. Tax owed is the actual amount you need to pay for the year based on your total income. At tax time, these two amounts are compared. If more was withheld than you owe, you get a refund. If less was withheld, you need to pay the difference.

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LITO and Tax Offsets

Q: What is LITO and how does it work?

LITO stands for Low Income Tax Offset. It’s an automatic tax offset (not a refund) that reduces the amount of tax you owe. If you earn up to $66,667, you may be eligible. The maximum offset is $700 for those earning $37,500 or less. LITO is calculated automatically when you lodge your tax return – you don’t need to apply for it separately.

Q: Will I get the LITO as a cash payment?

No. LITO is non-refundable, meaning it can only reduce your tax bill to $0, not below. You can’t receive it as cash. However, if your employer withheld tax during the year and LITO brings your tax to $0, you’ll get all the withheld tax refunded to you, which feels like getting money back.

Q: How much LITO will I get?

It depends on your income:

• Earn $37,500 or less: Full $700 offset
• Between $37,501-$45,000: $700 minus 5 cents for every $1 over $37,500
• Between $45,001-$66,667: $325 minus 1.5 cents for every $1 over $45,000
• Over $66,667: No LITO

Q: Do international students get LITO?

Yes, if you’re considered an Australian resident for tax purposes. Most international students who’ve lived in Australia for more than 6 months qualify as tax residents and are eligible for LITO. Check your residency status using the ATO’s online tool.

Q: Is LITO the same as LMITO?

No. LMITO (Low and Middle Income Tax Offset) was a temporary offset that ended on 30 June 2022. LITO (Low Income Tax Offset) is still available and ongoing. Don’t confuse the two – LMITO no longer exists.

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Multiple Jobs and Tax-Free Threshold

Q: I have two casual jobs. Do I claim the tax-free threshold from both?

No. You can only claim the tax-free threshold from one employer at a time. Choose your highest-paying job to claim it from, and answer “No” on the TFN declaration for your other jobs. If you claim from multiple employers, not enough tax will be withheld and you’ll owe money at tax time.

Q: What happens if I accidentally claim the threshold from two employers?

You’ll likely have a tax debt at the end of the year. Each employer withholds tax as if you’re using the full $18,200 threshold with them, but you only get to use it once for your combined income. The solution: complete a new TFN declaration with one employer, marking that you DON’T want to claim the threshold.

Q: Can I switch which job I claim the threshold from?

Yes, but make sure you’re only claiming from one job at any given time. Complete a new TFN declaration with each employer to update your status. Most people claim from their highest-paying job to maximise take-home pay throughout the year.

Q: My second job takes out heaps of tax. Is this wrong?

No, this is correct if you didn’t claim the tax-free threshold from that job. When you don’t claim the threshold, your employer withholds tax from the first dollar you earn (typically around 32-40% for lower income brackets). This seems like a lot, but it balances out when you lodge your tax return and your total income is assessed together.

Q: I have three casual jobs. How do I handle tax?

Claim the tax-free threshold from your highest-paying job only. For the other two jobs, don’t claim the threshold. Yes, this means more tax withheld from jobs 2 and 3, but you’ll likely get a refund when you lodge because your combined income will be assessed properly with LITO applied.

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Superannuation for Casual Workers

Q: Do casual workers get superannuation?

Yes. Casual workers are entitled to superannuation just like permanent employees, as long as you meet the eligibility criteria: you’re 18 or older (or under 18 but working 30+ hours per week) and earn at least $450 per month from one employer.

Q: How much super do casual workers get in 2026?

12% of your ordinary time earnings. This increased from 11.5% on 1 July 2025. So if you earn $2,000 in a month, your employer must contribute $240 to your super fund on top of paying you the $2,000.

Q: Does superannuation come out of my pay?

No. Superannuation is paid by your employer on top of your wages. It doesn’t reduce your take-home pay. Your employer is legally required to contribute this amount in addition to paying you your hourly rate.

Q: When does my employer pay my super?

Employers must pay super at least quarterly (every three months). The payment is due 28 days after the end of each quarter. From 1 July 2026, “payday super” is expected to be introduced, meaning super will be paid every time you get paid instead of quarterly.

Q: I work for three different employers. Who pays my super?

Each employer pays super separately. If you earn over $450 per month from each employer, all three must pay 12% super. However, if you earn less than $450 per month from an employer, they don’t have to pay super for that income.

Q: How do I check if my super is being paid?

Log into your super fund account online or check your payslip (some employers show super contributions on payslips). You can also use the ATO’s online services through myGov to see all super contributions made on your behalf.

Q: What if my employer isn’t paying my super?

Contact your employer first to clarify. If they still don’t pay, report it to the ATO. Unpaid super is taken seriously – employers face significant penalties for not meeting their super obligations.

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Tax Returns and Lodgment

Q: Do I need to lodge a tax return if I only worked casually?

Yes, if you earned more than $18,200 or if any tax was withheld from your pay. Even if you earned less than the threshold, if your employer withheld tax, you need to lodge to get that money back.

Q: When do I need to lodge my tax return?

The deadline is 31 October each year for the previous financial year. For example, for income earned between 1 July 2025 and 30 June 2026, you must lodge by 31 October 2026. If you use a registered tax agent, they usually have until May the following year.

Q: How do I lodge my tax return?

Most people lodge online through myTax on the ATO website (accessed via myGov). You’ll need your Tax File Number and a myGov account linked to the ATO. Your income information is usually pre-filled from your employer’s reports.

Q: When will I get my tax refund?

If you lodge online and there are no issues with your return, you’ll typically receive your refund within 2 weeks. The money is deposited directly into your nominated bank account. Paper returns take much longer – up to 8-10 weeks.

Q: What if I owe money instead of getting a refund?

You’ll need to pay by the date shown on your notice of assessment (usually within 2 weeks of receiving it). You can pay through BPay, direct debit, or credit card via the ATO portal. If you can’t pay it all at once, contact the ATO to arrange a payment plan.

Q: I forgot to lodge my tax return last year. What should I do?

Lodge it as soon as possible. You’ll face penalties for late lodgment (starting at $330), but these penalties increase the longer you wait. The ATO is usually more lenient if you lodge voluntarily before they contact you.

Q: Can I lodge a tax return for previous years?

Yes. You can lodge returns for previous years, usually going back several years. However, there are time limits on claiming refunds – generally you have 2 years from the due date to claim a refund, but you can request an extension in some circumstances.

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Tax Deductions and Claims

Q: What deductions can casual workers claim?

You can claim expenses directly related to earning your income, such as:

• Compulsory work uniforms with company logos
• Protective clothing and safety equipment
• Laundry for work clothes ($1 per load or actual costs)
• Union fees
• Work-related travel between jobs
• Tools and equipment required for your job
• Work-related phone and internet costs (work portion only)

Q: Can I claim my regular work clothes?

No. You can’t claim ordinary clothes even if your employer requires you to wear specific colours or styles (like “black pants and white shirt”). You can only claim compulsory uniforms with company logos or occupation-specific clothing like chef whites or hi-vis vests.

Q: Can I claim travel from home to work?

No. Travel from home to your regular workplace is considered private travel and isn’t deductible. However, you can claim travel between two different work locations on the same day, or from work to a work-related course or meeting.

Q: Do I need receipts for all deductions?

For claims totaling over $300, yes, you need actual receipts. For claims under $300 in total, you can use bank statements or payslips as evidence. However, it’s always best practice to keep receipts for everything you claim.

Q: Can I claim my phone and internet?

Only the work-related portion. If you use your phone 30% for work (checking rosters, work calls), you can claim 30% of your phone costs. You need to keep a diary for a representative 4-week period to justify your percentage.

Q: I’m studying. Can I claim my course fees and textbooks?

Only if your course directly relates to your current employment. If you’re working at Coles and studying IT, you generally can’t claim the course unless you work in Coles’ IT department. The course must maintain or improve skills for your current job, not prepare you for a new career.

Q: What happens if I claim things I’m not entitled to?

If the ATO audits your return and finds incorrect claims, they’ll disallow those deductions and you’ll have to pay back the tax benefit. You may also face penalties and interest charges. Only claim what you’re genuinely entitled to.

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2026 and 2027 Tax Cuts

Q: What are the 2026 tax cuts?

From 1 July 2026, the tax rate for income between $18,201 and $45,000 will drop from 16% to 15%. From 1 July 2027, it drops again to 14%. These changes are already legislated and will happen automatically.

Q: How much will I save from the tax cuts?

If you earn $45,000 or more, you’ll save $268 per year from July 2026, and another $268 from July 2027 (total $536/year). If you earn less, your savings are proportional. For example, earning $30,000 will save you about $236 per year by 2027-28.

Q: Do I need to do anything to get the tax cuts?

No. The changes happen automatically. Your employer will withhold less tax from your pay using updated tax tables, and when you lodge your return, your tax will be calculated using the new lower rates.

Q: Will the tax cuts affect my LITO?

No. LITO remains at a maximum of $700 and continues to apply. The tax cuts work alongside LITO, not instead of it. This means low-income earners benefit from both the lower tax rate and the full LITO.

Q: When will I see the extra money in my pay?

From your first full pay period on or after 1 July 2026, you should see slightly less tax withheld from your pay. The difference per pay might be small (a few dollars per week), but it adds up over the year.

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Special Situations

Q: I’m an international student. Do I pay different tax?

It depends on your residency status for tax purposes. Most international students who’ve lived in Australia for more than 6 months are considered Australian residents for tax and pay the same rates as everyone else (including getting the tax-free threshold and LITO). Non-residents for tax pay different rates and don’t get the threshold. Check your status using the ATO’s residency tool.

Q: I’m on a working holiday visa. How does tax work for me?

Working holiday makers have special tax rates: 15% on the first $45,000, then standard rates above that. You don’t get the tax-free threshold, but you also don’t pay the 32.5% non-resident rate. Make sure you tick the working holiday maker option on your TFN declaration.

Q: What if I only work during university holidays?

The tax system works on annual income, not whether you work year-round. If you only work 3 months per year and earn $12,000 total, you’ll pay zero tax (below the threshold). Just make sure you lodge your tax return to get back any tax that was withheld.

Q: I started my job halfway through the year. Does this affect my tax?

Tax is calculated on your total income for the full financial year (1 July to 30 June), regardless of when you started working. If you only worked for 6 months and earned $15,000, you’re still below the threshold and won’t pay tax.

Q: Can I split my income with my partner to pay less tax?

No. Each person is taxed individually in Australia. You can’t split or transfer income between partners for tax purposes. Each person lodges their own return based on their own income.

Q: I have a HECS/HELP debt. Does this affect my tax?

HECS/HELP repayments are separate from income tax. If you earn above the repayment threshold ($54,435 in 2025-26), additional amounts are withheld from your pay for HECS repayments. This is calculated on your notice of assessment when you lodge your return. If you’re earning under this as a casual worker, you won’t make any repayments.

Q: What’s the Medicare Levy and do casual workers pay it?

The Medicare Levy is 2% of your taxable income and helps fund Australia’s public health system. Everyone pays it, including casual workers, unless you earn below the low-income threshold ($26,000 for singles in 2025-26). It’s separate from income tax and can’t be reduced by LITO.

Q: I’m paid cash in hand. Do I still need to pay tax?

Yes. All income must be declared, regardless of how you’re paid. Cash payments don’t make the income tax-free. Your employer is required to withhold tax and pay super even if they’re paying you in cash. If they’re not doing this, they’re breaking the law. You still need to declare this income on your tax return.

Q: My employer says I’m a contractor, but I think I’m an employee. Does this affect my tax?

Yes, significantly. Contractors usually need an ABN and don’t have tax withheld from payments (you need to set aside money for tax yourself). Employees have tax withheld automatically. If you’re genuinely an employee being treated as a contractor, your employer may be avoiding tax and super obligations. Use the ATO’s employee vs contractor tool to check your status, or read our guide on TFN vs ABN.

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Common Concerns and Scenarios

Q: I think my employer withheld too much tax. Can I get it back during the year?

Generally no – you get it back when you lodge your tax return. However, you can complete a Withholding declaration form to reduce the amount withheld from future pays if you believe it’s excessive. Most people just wait for the refund at tax time.

Q: I didn’t provide my TFN to my employer. What happens?

Your employer will withhold tax at the highest rate (currently 47%) from your pay. You should provide your TFN as soon as possible. Once you do and lodge your tax return, you’ll get back the excess tax that was withheld.

Q: Can I get advance access to my tax refund?

No. The ATO doesn’t offer advance refunds. Be wary of companies offering “instant tax refunds” or loans against your expected refund – these often charge high fees and interest. Just wait the 2 weeks for the ATO to process your refund.

Q: What if I make a mistake on my tax return?

You can request an amendment by contacting the ATO after you’ve lodged. If you realise you made a mistake before the ATO processes your return, you can withdraw it and lodge a corrected version. Small mistakes (like slightly incorrect deduction amounts) can usually be amended easily.

Q: Do penalty rates and weekend loading affect my tax?

Penalty rates and weekend loading are part of your gross income and are fully taxable. They don’t create higher tax rates – they just increase your total income, which may push you into a slightly higher bracket if your income is near a threshold.

Q: I worked for a company that went bankrupt. Will I still get a refund?

Yes. Your employer reported your income to the ATO during the year (or it appears on your final payment summary). As long as this information is in the ATO system, you can lodge your return and claim any refund. The refund comes from the ATO, not from your employer.

Q: Can I claim WorkCover if I’m a casual worker?

WorkCover (workers compensation) entitlements depend on state laws and whether your employer has insurance, not your employment type. Casual workers are generally covered just like permanent employees. This is separate from tax – your WorkCover payments may or may not be taxable depending on the type of payment.

Q: How long should I keep my tax records?

Keep your tax return and all supporting documents (receipts, payslips) for 5 years from the date you lodge. The ATO can audit returns within this period and may ask for proof of your claims.

Q: I’m moving overseas partway through the year. How does this affect my tax?

You’ll need to lodge a tax return for the part of the year you were in Australia. Your tax residency status may change, which affects your tax rates. Inform the ATO of your departure date, and lodge a return for the period you were an Australian resident. If you’re an international student leaving permanently, you can also claim back your superannuation through the DASP scheme.

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Getting Help

Q: Where can I get free tax help?

The ATO offers free Tax Help for people earning under $60,000. Tax Help volunteers are available from July to October at community centres, libraries, and other locations. You can also call the ATO on 13 28 61 for general advice. For personalized advice, consider seeing a registered tax agent.

Q: Should I use a tax agent or lodge myself?

Most casual workers with simple tax situations (just employment income and basic deductions) can lodge themselves through myTax for free. Consider using a tax agent if you have complex situations like multiple income sources, rental properties, business income, or substantial deductions you’re unsure about.

Q: What if I disagree with my tax assessment?

You can object to your assessment within 2 years. Contact the ATO to discuss why you disagree. They may review your assessment and make changes. If you’re still not satisfied, you can escalate to the Inspector-General of Taxation or the Administrative Appeals Tribunal.

Q: Can the ATO see my bank account?

Yes. The ATO has access to information from financial institutions and can see your bank accounts, investments, and other financial data. Always declare all your income accurately – the ATO can identify discrepancies between what you report and what they can see.