How to do your first tax return in Australia

A tax return is a once-a-year form you send to the Australian Taxation Office (ATO). It shows what you earned between 1 July and 30 June and what you can claim. The ATO works out the tax you really owed and compares it with the tax work already took from your pay. Too much taken? You get a refund. Too little? You get a bill for the gap.

This guide covers your 2025-26 return (1 July 2025 to 30 June 2026), which is the one you lodge now. Doing it yourself? The deadline is 31 October 2026. Mostly it's checking numbers the ATO has already filled in for you.

Do I even need to lodge?

Usually yes, if you worked. You usually don't need to lodge if your income was under the tax-free threshold ($18,200) and no tax was taken out. But if even $1 of tax was withheld, you lodge to get it back.

If you really don't need to lodge, tell the ATO with a "non-lodgment advice" in ATO online services (Tax, then Lodgments, then Non-lodgment advice) so they don't send you reminders.

Before you start, grab your bank BSB and account number (for the refund), receipts for anything you want to claim, and your private health details if you have cover. The ATO already has your tax file number (TFN) on file.

Step-by-step: lodging with myTax

Step 1: Create myGov and link the ATO

Create an account at my.gov.au. The ATO recommends signing in with myID (the government's Digital ID app), but an email plus an SMS code or authenticator app also works. Then follow the prompts to link the ATO, confirm your details and answer a few identity questions.

Step 2: Wait for "Tax ready"

Your employer reports your pay to the ATO, and at year end it becomes your income statement: wages, tax withheld and Super. Employers have until 14 July to finalise it, and then it shows as Tax ready.

Wait for that label, or the numbers might change and you'd need to fix your return later. The ATO messages your myGov inbox when everything's ready. Still not Tax ready after 31 July? Ask your employer.

Step 3: Open myTax and check the pre-fill

In myGov, select ATO, then Manage tax returns, then start your 2026 return. myTax pre-fills info the ATO already has, including:

• wages and tax withheld from each job
• bank interest
• government payments
• private health insurance details

Check every line against your payslips and bank statements. Pre-filled doesn't mean perfect. If you had two jobs, make sure both are there.

Step 4: Add anything missing

Cash jobs, a second job that didn't pre-fill, interest from a smaller bank: if you earned it, it goes in. Honesty beats a later letter.

Got shares or ETFs? Dividends and franking credits go in too, and they often pre-fill. More in What are franking credits?.

Step 5: Add your deductions

A deduction is a work cost you paid yourself that lowers the income you pay tax on. It's not cash back: you save roughly your tax rate on it (16c per dollar for most first-jobbers).

The ATO's three golden rules for every claim:

1. You spent the money yourself and weren't paid back.
2. It's directly related to earning your income.
3. You have a record to prove it (usually a receipt).

What young workers can really claim (more in How do I even claim work-related expenses?):

• Uniforms: a compulsory uniform with your employer's logo, clothes specific to your job (like chef's chequered pants), or protective gear like steel-capped boots, non-slip shoes, hi-vis or UPF sun protection for outdoor work. Plus washing them: the ATO accepts $1 per load of only work clothes, or 50c for a mixed load.
• Tools and equipment you bought for work. Items $300 or less can usually be claimed in one go. Pricier items get claimed over a few years.
• Union fees and work-related professional memberships.
• The work part of your phone. Keep a 4-week diary of work vs personal use, then claim that percentage. Casuals: calls or texts with your boss about whether there are shifts don't count.
• Working from home: 70 cents per hour for 2025-26 using the fixed rate method. You need a record of your actual hours kept as you go (a timesheet, roster, diary or spreadsheet; estimates aren't accepted), plus at least one bill for each cost it covers, like electricity or internet. If you use this rate, you can't also claim your phone or internet separately.
• Study (self-education), only if the course is tied to the job you have now, like an apprentice's TAFE costs. A uni degree for a totally different future career, while you work weekends in retail, doesn't count. HECS-HELP fees and HECS repayments are never deductible.

Myths to skip: plain black pants and white shirts (even if work makes you wear them), travel between home and work, and lunch. These are private costs. The ATO's free occupation guides show what fits your job.

Records for 2025-26: if your total work claims are $300 or less, you don't need receipts, but you do need to show how you worked them out. Over $300, you need written evidence for the lot. Keep records for 5 years.

Heard about the $1,000 "instant" tax deduction? It's real, but it starts from your 2026-27 return. It does not apply to this 2025-26 return, so claim your actual expenses as normal this time.

Step 6: The tax-free threshold and offsets (mostly automatic)

The first $18,200 you earn in a year is tax-free. That's the tax-free threshold. At tax time it's applied to your total income automatically.

The low income tax offset (LITO) is also automatic. An offset is a discount on your tax bill. For 2025-26 it's up to $700 if your taxable income is $37,500 or less, then it shrinks until it hits zero at $66,667. It can bring your tax down to $0, but it can't create a refund on its own. More in What is LITO?.

For 2025-26, residents pay:

(The 16% rate drops to 15% from 1 July 2026, so that's next year's return, not this one.)

Step 7: HECS (if you have a study loan)

If you have a HECS-HELP debt, your return works out your compulsory repayment for the year. For 2025-26 there's a new system: you pay nothing if your repayment income is $67,000 or less. Above that, it's 15c for each dollar over $67,000 (up to $125,000). So if your income was $80,000, your repayment is 15% of $13,000, which is $1,950.

If work withheld extra for HECS during the year, the return squares it up, and anything over what you owe can come back to you. Also, the one-off 20% cut to HELP debts that existed on 1 June 2025 has already been applied, so check your balance in ATO online services. More on this in What is HECS-HELP? and What is indexation on HECS?.

Step 8: Medicare levy and private health

The Medicare levy is 2% of your taxable income and helps fund the public health system. On lower incomes it's smaller or zero. For 2025-26, as a single person with no dependants, you pay no levy if your taxable income is $28,011 or less, and a reduced amount between $28,011 and $35,013. More in What is the Medicare levy?.

The Medicare levy surcharge is a separate extra charge (1% to 1.5%) for higher earners without private hospital cover. For 2025-26 it only starts for singles above $101,000, so most first-jobbers don't need private health insurance for tax reasons. If you do have cover, check the pre-filled details.

Step 9: Review and lodge

myTax shows an estimate of your refund or bill before you hit submit. If it looks way off, recheck your income and tax withheld, then lodge. You'll get an email receipt.

What happens after you lodge

• Processing: most online returns take about 12 business days, and refunds generally arrive within 2 weeks. Manual checks can take up to 30 days.
• Notice of assessment: this is the ATO's official result. It shows your refund or bill.
• Track it in myGov (ATO, then Manage tax returns) or the ATO app.
• If you owe: pay by the due date on your notice. If you lodge yourself by the deadline, payment is usually due 21 November. If paying in one go is tough, you may be able to set up a payment plan with the ATO, so contact them early.

Getting a refund? Nice. A planned slice into your emergency buffer or an investing goal means future you gets a cut too, and you can still enjoy the rest.

Why you might get a refund (or owe)

Your work takes tax out of each pay using PAYG withholding. It's an estimate based on what you'd earn if every pay looked like this one (What is PAYG?). Real life is messier:

• Casual or uneven hours. A huge week gets taxed as if you earn that much every week, so you often get some back.
• Part-year work. Started in March? Your pays were taxed like a full year's income, but you only earned for a few months.
• Two jobs both claiming the threshold. This is the big one for owing. Claim the threshold from your main job only, and tick "no" for the second one. See How do I even handle tax with two jobs?
• HECS. Your employer may withhold for HECS, but the real repayment is only worked out in your return.

Worked examples: what refund to expect

These are made-up people with made-up withholding numbers, to show how the maths works. Your real "tax withheld" is on your income statement. All use 2025-26 rates for a single resident with no dependants.

Example 1: Mia, uni student, casual café job, $15,000

Mia claimed the tax-free threshold. Most weeks nothing came out, but a few big weeks over summer had tax taken. Say her income statement shows $420 withheld.

Mia owes nothing, so all $420 comes back. That's why lodging matters even on a small income.

Example 2: Jordan, part-time retail, one job, $32,000

Jordan claimed the threshold from their only job. They claim $220 in union fees and $60 washing their logo uniform (60 loads at $1). That's $280, so no receipts are needed, but Jordan keeps a note of how they worked it out. Say payslips show $2,300 withheld.

Example 3: Sam, two casual jobs, $40,000 total, both claiming the threshold

Sam earned $24,000 at a supermarket and $16,000 at a cinema, and ticked "yes" to the tax-free threshold at both. Sam also has a HECS debt. Say the supermarket withheld $1,150 and the cinema withheld $0.

Both jobs treated Sam's first $18,200 as tax-free, but the return only gives it once. No stress, it's fixable: Sam can give the cinema a withholding declaration to stop claiming the threshold there, so next year's pay covers it as it goes.

31 October deadline vs a registered tax agent

If you lodge yourself, your 2025-26 return is due 31 October 2026. That's a Saturday this year, and the ATO's rule is that a weekend due date moves to the next business day (Monday 2 November 2026). Aim for the 31st anyway.

You can also use a registered tax agent. Most agents can lodge for their clients after 31 October, but you need to be on their books before 31 October to get that extra time. Check anyone you're thinking of using is registered on the Tax Practitioners Board (TPB) register. Only registered agents can charge a fee to do your tax. The fee you pay to get your tax done can usually be claimed as a deduction in the following year's return.

Missed it? Lodge as soon as you can and contact the ATO, especially if you think you'll owe.

Common first-return mistakes

• Lodging before your income statement says Tax ready
• Missing a second job or a short-lived job from earlier in the year
• Claiming the tax-free threshold from two jobs at once
• Claiming plain clothes, travel to work or private phone use
• Guessing work-from-home hours instead of keeping a record
• Claiming something your boss paid you back for
• Forgetting bank interest or wrong bank details

Want the short version on refunds? See How to get a tax refund.

Sources

All checked on 20 October 2026.

• ATO: Tax rates for Australian residents
• ATO: Multiple jobs or change of job
• ATO: Low income tax offset
• ATO: What is the Medicare levy?
• ATO: Medicare levy reduction for low-income earners
• ATO: Paying the Medicare levy surcharge
• ATO: Medicare levy surcharge income, thresholds and rates
• ATO: Study and training loan repayment income and rates
• ATO: Study and training loans, what's new
• ATO: Fixed rate method (working from home)
• ATO: myTax 2026 claiming deductions
• ATO: Standard deduction for work-related expenses
• ATO: Clothing, laundry and dry-cleaning expenses
• ATO: Mobile phone, mobile internet and other devices
• ATO: Self-education expenses
• ATO: Union fees and subscriptions
• ATO: Super guarantee
• ATO: Preparing your tax return
• ATO: Lodge with a registered tax agent
• ATO: Lodge your tax return online with myTax
• ATO: myTax before you begin (pre-fill)
• ATO: Access your income statement
• ATO: Income statement not tax ready
• ATO: Create a myGov account and link it to the ATO
• ATO: How to track the progress of your tax return
• ATO: Why you may receive a tax bill
• ATO: Lodge a non-lodgment advice