Advice is required on whether the following persons and entities must lodge an income tax return for 2016/17:
1.A resident individual whose taxable income is more than $18, 200.
2.A resident individual aged 23 years whose taxable income is $16,000 and who has had amounts of PAYG withheld from their salary and wages during the year.
3. An unmarried individual aged 17 years at 30 June 2017 who has $400 income from dividends and no other income.
4. A non-resident individual who carried on business in Australia during 2016/17.
5. A resident individual who has taxable income of $12,000 for 2016/17 with no amounts withheld by their employer but whose payment summary shows a reportable fringe benefits amount.
In relation to the persons and entities listed above, the legislative instrument shows:
1. A resident individual must lodge an income tax return if their taxable income exceeds $18, 200(the tax free threshold for 2016/17).
2. A resident individual must lodge an income tax return if they have had amounts of PAYG withheld from their salary or wage income during 2016/17.
3. An unmarried individual aged 17 years on the last day of the year is a “prescribed person” for the purposes of ITAA36 Div 6AA and must lodge an income tax return only if their unearned income (ie other than a certain excepted income) for the year exceeds $416.
4. A non-resident individual who carries on business in Australia is required to lodge an income tax return because the Australian-source income derived from the business would be assessable income of the non-resident and tax is payable from the first dollar.
5. A resident individual who has taxable income below the $18, 200 tax free threshold would not normally be required to lodge an income tax return if no PAYG amounts have been withheld by their employer unless their payment summary shows a reportable fringe benefits amount – if individual’s employer has provided fringe benefits with a taxable value of at least $2,000 to the individual, the gross-up taxable value must be reported on the payment summary and an income tax return lodged.