Can you lodge a tax return if you worked cash in hand in Australia?

What does cash in hand work mean for your tax?

When you are paid cash in hand:

• No PAYG tax is withheld at the time of payment
• No record exists in the ATO's payroll reporting system
• You receive the full amount, but the tax liability is shifted to you
• You declare the income yourself on your tax return at year-end

This means you may owe tax at the 15% working holiday maker rate on the cash earnings, paid at lodgment rather than through PAYG.

What records should you keep?

Without PAYG records, your own documentation is essential:

• Dates you worked (record each shift)
• Hours worked per shift
• Rate of pay agreed
• Amount received per payment
• Name and contact details of the person or business that paid you
• Any text messages, emails, or roster notifications confirming the work

Photograph or scan these records and save them somewhere secure. The ATO can request them up to five years later.

What about superannuation on cash in hand work?

If you were an employee being paid cash (not a contractor under an ABN), your employer is still legally required to pay 11.5% superannuation on top of your wages. Many cash-paying employers do not. This is a serious breach of Australian employment law.

If you are owed unpaid super:

• Keep all records of your hours and wages
• Get in touch with our team and we can help raise the issue
• We work through the recovery process for our clients regularly

The amount recovered can be significant if you worked for several weeks or months.

What if you were not given a payslip?

Working without payslips is unfortunately common in cash arrangements. To work around this:

• Use your own records as the basis for declaring income
• Be honest and consistent (estimate where exact figures are not available)
• Keep any evidence of the work (bank deposits showing the cash you deposited, text exchanges, photos at the workplace)

An honest return with slightly imprecise figures is much better than not lodging at all. The ATO is far more concerned about deliberate non-disclosure than minor estimation errors made in good faith.

What does our service do with cash-in-hand income?

When you lodge through us:

• We declare the cash income at the correct 15% working holiday maker rate
• We work out exactly how much you owe (if any)
• We claim any work-related deductions to reduce the tax bill
• We can also help recover any unpaid super if you were an employee

Send us your details and we will work out the best way to handle your return, even if your records are incomplete.