Do I need to lodge a tax return if I earned under $18,200?

You're generally not required to lodge if your only income was salary or wages under $18,200 and you had no other lodgement obligations. However, you should lodge if any tax was withheld from your pay — you'll get it all back as a refund. Lodging is free through myTax and takes about 15 minutes.

What happens if I don't give my employer a TFN?

Your employer is required to withhold tax at the top marginal rate (45% plus Medicare levy) from every dollar you earn. You have 28 days from starting work to provide your TFN. If you've applied but haven't received it yet, tell your employer — they can withhold at the normal rate for 28 days while you wait.

Can I claim the tax-free threshold at two jobs?

You can, but it's usually a bad idea. The $18,200 threshold applies to your total income across all jobs. If you claim it at two employers, neither will withhold enough tax, and you'll owe a lump sum when you lodge your return. Claim it at your highest-paying job only and leave it unclaimed at any other jobs.

How much can I earn before paying any tax at all?

In 2025-26, you can earn up to $22,575 before paying any income tax. The tax-free threshold covers the first $18,200, and the Low Income Tax Offset (LITO) effectively extends that to $22,575 by offsetting the tax on the next $4,375 of income. The LITO is applied automatically when you lodge your return.

Do I get taxed differently because I'm a casual?

No. Income tax rates are the same whether you're casual, part-time, or full-time. However, casuals receive a 25% loading on their base hourly rate to compensate for not getting paid leave or other entitlements. This loading is taxable income. The only thing that affects your tax rate is your total annual income and residency status.

What is superannuation and do I have to pay it?

Superannuation (super) is a compulsory retirement savings system. Your employer pays 12% of your ordinary time earnings into a super fund — you don't pay it, they do, on top of your salary. Since 1 July 2022, there's no minimum earnings threshold for super eligibility, so even casual workers earning a small amount are entitled to super contributions.

Should I choose my own super fund?

Yes, if you can. When you start a job, your employer will ask for your super fund details via a Standard Choice Form. If you don't choose, they'll check for a 'stapled' fund (an existing account that follows you between jobs). If you don't have one, contributions go to their default fund. Choosing your own fund — and sticking with one — avoids paying fees on multiple accounts.

When is my first tax return due?

If you lodge yourself through myTax, the deadline is 31 October after the financial year ends. For example, for the 2025-26 year (1 July 2025 to 30 June 2026), you'd lodge by 31 October 2026. If you use a registered tax agent, you may get a later deadline. Most employers finalise your income statement in myGov by mid-July, so you can often lodge from late July.

What is an income statement and where do I find it?

An income statement (formerly called a payment summary or group certificate) shows your total earnings and tax withheld for the year. Your employer reports this to the ATO through Single Touch Payroll. You can view it in your myGov account under ATO > Employment > Income statements. Once it's marked 'Tax ready', the ATO will pre-fill it into your myTax return.

What deductions can I claim in my first job?

You can claim work-related expenses that you paid for yourself and weren't reimbursed. Common examples for young workers: non-slip work shoes (if required), a uniform or branded clothing, union fees, and the work-related portion of your phone bill. You need receipts or records for anything over $300 in total. You can't claim normal clothing, commuting costs, or meals unless you're travelling for work.

First Job Tax Guide for Young Australians

Everything you need to know about tax when you start working — getting a TFN, filling out your TFN declaration, reading your payslip, choosing super, and lodging your first tax return.

Updated April 202612 min read

Based on published ATO ratesUpdated for 2025-26

Get a Tax File Number (TFN)

A Tax File Number is your personal reference number in the Australian tax system. You need one before you start work — without it, your employer must withhold tax at the highest marginal rate (45% plus 2% Medicare levy) from every dollar you earn.

How to apply

1.Online (fastest): If you're an Australian citizen aged 15 or over with a Strong myID (digital identity), apply online through the ATO. You may receive your TFN within days.
2.Australia Post: Complete the online form, then take your identity documents to a participating post office for verification. Allow up to 28 days.
3.Services Australia: If you receive Centrelink payments, you can apply in person at a Services Australia office.

It's free to apply and you only need to do it once — your TFN stays the same for life, even if you change your name or move states.

Under 16? You can still apply for a TFN if you're under 15, but you'll need a parent or guardian to apply on your behalf through a paper form. If you're between 13 and 15, you can apply through Australia Post with a parent present.

Source: ATO — Apply for a TFN

Fill out your TFN declaration

When you start a new job, your employer will ask you to complete a TFN declaration form (NAT 3092). This tells them your TFN, your residency status, and how much tax to withhold from your pay. You can complete it on paper or online through myGov.

The key questions

Do you want to claim the tax-free threshold?

Tick YES for your main job. This tells your employer not to withhold tax on the first $18,200 of your annual earnings. Only claim it from one employer.

Do you have a HELP, VSL, SFSS or TSL debt?

Tick YES if you have a university HECS-HELP or other study loan. Your employer will withhold extra tax to cover compulsory repayments once your income exceeds $67,000.

Do you want to claim the seniors and pensioners tax offset?

Tick NO — this is for retirees of Age Pension age. It doesn't apply to young workers starting their first job.

28-day rule: If you've applied for a TFN but haven't received it yet, tell your employer. They can withhold tax at the normal rate for up to 28 days while you wait. After 28 days without a TFN, they must switch to the top rate.

Source: ATO — How to complete the TFN declaration form

The tax-free threshold explained

The tax-free threshold is $18,200 per year. If your total taxable income for the financial year (1 July to 30 June) is $18,200 or less, you pay zero income tax.

When you claim the tax-free threshold on your TFN declaration, your employer adjusts their withholding so they don't take tax from roughly the first $350 per week of your earnings.

What this means in dollars

Working 10 hours/week at $25/hour

$13,000/year — no tax at all

At $250/week ($13,000 annually), you're well under the $18,200 threshold. If your employer withheld any tax (e.g. you forgot to claim the threshold), you'll get it all back when you lodge your tax return.

The effective tax-free threshold is higher

Thanks to the Low Income Tax Offset (LITO), you can actually earn up to $22,575 before paying any income tax. LITO provides up to $700 in tax offset for people earning under $66,667. It's applied automatically when you lodge your tax return — you don't need to apply for it.

LITO phase-out rates (2025-26)

•Income up to $37,500 → full $700 offset
•$37,501 – $45,000 → $700 minus 5c for each $1 over $37,500
•$45,001 – $66,667 → $325 minus 1.5c for each $1 over $45,000

Two jobs? The $18,200 threshold applies to your total income across all jobs, not per employer. If you work two casual jobs, claim the tax-free threshold at your highest-paying job only. At your second job, your employer will withhold tax from the first dollar — but this prevents an unexpected tax bill at the end of the year.

Try this scenario

See exactly how much tax you'd pay on different part-time incomes with the tax-free threshold applied.

Calculate tax on $25,000

Source: ATO — Tax-free threshold

How tax brackets work

Australia uses a progressive tax system. You don't pay one flat rate on all your income — instead, different portions of your income are taxed at different rates. Only the income within each bracket is taxed at that bracket's rate.

Income range	Tax rate	Tax on this bracket
$0 – $18,200	0%	Nil
$18,201 – $45,000	16%	16c for each $1 over $18,200
$45,001 – $135,000	30%	$4,288 plus 30c for each $1 over $45,000
$135,001 – $190,000	37%	$31,288 plus 37c for each $1 over $135,000
$190,001+	45%	$51,638 plus 45c for each $1 over $190,000

Source: ATO — Tax rates for Australian residents

Example: How tax works on a $40,000 salary

1.First $18,200 → $0 tax (tax-free threshold)
2.Next $21,800 ($18,201 to $40,000) → $21,800 × 16% = $3,488
3.Total tax before offsets = $3,488
4.LITO offset: −$575
5.Actual tax payable = $2,913 (effective rate: 7.3%)

Notice the effective rate is 7.3%, not 16%. That's because only the income above $18,200 is taxed, and LITO further reduces the bill. A common misconception is that earning $18,201 means your entire salary gets taxed — it doesn't. Only that single extra dollar is taxed at 16%.

Try this scenario

Enter any income to see exactly how tax is calculated across each bracket.

Calculate tax on $40,000

Reading your payslip

Your employer must give you a payslip within one working day of paying you. It can be electronic (email, app, portal) or on paper. Here's what each line means:

Line item	What it means
Gross pay	Your total earnings before any deductions. For casual workers, this includes the 25% casual loading.
PAYG withholding	Income tax your employer sends to the ATO on your behalf. The amount depends on your annual earnings estimate and whether you claimed the tax-free threshold.
Net pay	What actually lands in your bank account — gross pay minus PAYG tax and any other deductions.
Super guarantee	12% of your ordinary time earnings, paid by your employer into your super fund. This is on top of your gross pay — it doesn't reduce your take-home.
Year-to-date (YTD)	Running totals since 1 July. Useful for checking whether your total income will stay under $18,200 for the year.

What this means in dollars

Earning $600/week gross in a casual retail job

~$547 take-home after $53 PAYG withholding

Your employer also pays $72 into your super fund on top of this — that's 12% of $600. The super doesn't come out of your pay.

Check your payslip every time. Mistakes happen — wrong hours, missing penalty rates, or incorrect tax withholding. If something looks off, raise it with your employer. You can also check your year-to-date income and tax withheld in your myGov account under ATO services.

Superannuation: your retirement savings

Superannuation (super) is Australia's compulsory retirement savings system. Your employer must pay 12% of your ordinary time earnings into a super fund. This is on top of your salary — it doesn't reduce your take-home pay.

Who gets super?

Since 1 July 2022, all employees are entitled to super regardless of how much they earn. There's no minimum earnings threshold. Whether you work 3 hours a week or 40, your employer owes you super.

Choosing a super fund

When you start work, your employer will ask you to nominate a super fund using a Standard Choice Form. You have three options:

1.Choose your own fund — compare fees, insurance, and performance. This is the best option if you want control over where your money goes.
2.Use your stapled fund — if you've had a previous job, you may already have a super account. Under "stapling" rules, this account follows you to your new job, avoiding duplicate accounts and fees.
3.Go with the employer default — if you don't choose and don't have a stapled fund, your employer pays into their default fund (which must offer a MySuper product with capped fees).

One account is better than many. Every super account charges fees. If you end up with three accounts across three jobs, you're paying triple the fees — and your balance in each account is smaller, reducing the power of compound growth. Consolidate your accounts through myGov or by contacting your chosen fund.

What this means in dollars

Starting super at 18 on a $30,000 salary

$3,600/year into super — potentially $500,000+ by retirement

At 12% of $30,000, your employer contributes $3,600 per year. Thanks to compound returns over 40+ years, even these early contributions can grow substantially. Starting early is the single biggest advantage in super.

Source: ATO — Super guarantee rate

Lodging your first tax return

The financial year runs from 1 July to 30 June. After 30 June, you lodge a tax return that tells the ATO how much you earned and how much tax was withheld. If too much was withheld, you get a refund. If too little, you owe the difference.

Step-by-step: lodge with myTax

1.Create a myGov account and link it to the ATO. You'll need your TFN and either a Notice of Assessment, bank account on file with the ATO, or a Centrelink reference number.
2.Wait for your income statement to be marked "Tax ready" in myGov (usually mid-to-late July). Your employer reports your earnings and tax withheld through Single Touch Payroll — the ATO pre-fills this into your return.
3.Log into myTax via myGov and select "Lodge tax return." Check that the pre-filled information matches your records.
4.Add any deductions — work-related expenses you paid for and weren't reimbursed (work shoes, uniform, union fees, etc.).
5.Review and submit. myTax will calculate your refund or amount owing. Most refunds are processed within 2 weeks.

Deadline: If you lodge yourself, you have until 31 October after the financial year ends. For the 2025-26 year, that means 31 October 2026. Using a registered tax agent can extend this deadline — but for a straightforward first tax return, myTax is free and usually takes under 20 minutes.

Even if you earned under $18,200 and aren't required to lodge, it's worth doing if any tax was withheld. You'll get every dollar of that withheld tax back as a refund.

Source: ATO — Lodge your tax return online with myTax

Common first-job scenarios

Here's what tax looks like at typical first-job income levels in 2025-26. All figures assume you're an Australian resident claiming the tax-free threshold.

Scenario	Annual income	Income tax	Take-home
Casual retail — 10 hrs/week Under $18,200 — no tax at all	$12,860	$0	$12,860
Part-time hospitality — 20 hrs/week LITO reduces tax by $580	$29,390	$1,481	$27,909
Full-time graduate — 38 hrs/week Includes Medicare levy	$66,500	$11,438	$55,062
Full-time grad with HECS — 38 hrs/week No HECS repayment — under $67,000 threshold	$66,500	$11,438	$55,062

Try this scenario

Enter your hourly rate and hours per week to see your exact tax breakdown. Switch to 'Hourly' frequency for casual work.

Calculate tax on an hourly rate

Tax tips for young workers

Keep your receipts from day one

Work shoes, uniforms, tools, and union fees are deductible. Take a photo or save the digital receipt. You need records for claims over $300 total — but it's good practice for any amount.

Claim the tax-free threshold correctly

One job = claim it. Two jobs = claim it at the highest-paying one only. Forgetting to claim it means you overpay tax all year (you'll get it back, but why lend the ATO your money interest-free?).

Lodge your tax return even if you don't have to

If you earned under $18,200 and had tax withheld, you'll get it all back. Even $500 withheld across the year is worth the 15 minutes it takes to lodge via myTax.

Pick one super fund and stick with it

When you change jobs, give your new employer your existing fund details. Multiple accounts = multiple fees eroding your balance. Consolidate in myGov if you already have duplicates.

Check your super is actually being paid

Employers must pay super at least quarterly. Log into your super fund or check myGov to confirm contributions are appearing. If they're not, raise it with your employer first — and report it to the ATO if it isn't resolved.

Never ignore a letter from the ATO

The ATO communicates through myGov messages, not just physical mail. Link your myGov to the ATO early and check it periodically. Ignoring ATO correspondence can lead to penalties and interest charges.

Income Tax Calculator

Enter your salary or hourly rate to see your exact income tax, Medicare Levy, LITO offset, and take-home pay for 2025-26.

Frequently asked questions

Related guides & calculators

How Income Tax Works in Australia

A deeper dive into progressive taxation, Medicare levy, tax offsets, and PAYG withholding.

Australian Tax Brackets 2025-26

Full bracket table with worked examples and Stage 3 tax cut history.

HECS-HELP Repayment Guide 2025-26

How HECS repayments work under the new marginal system — relevant once you graduate and start earning over $67,000.

Work-Related Tax Deductions: Complete Guide

Working from home, car expenses, uniforms, tools — what you can and can't claim.

Income Tax Calculator

Calculate your exact income tax, Medicare Levy, and net take-home pay.