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Tax ReturnPublished 7 November 20244 min read

Worked a Few Months? You Still Must Lodge

Even a short working stint usually needs a tax return, and short stays are often over withheld, so lodging pays. The rules and the non-lodgment advice.

Quick answer

Yes, almost certainly. The obligation to lodge follows income, not length of stay: two weeks of wages creates the same requirement as two years. Short stays are also where the refund percentages are highest, because withholding assumed a full year that never happened.

What triggers the obligation?

Earning wages in Australia during a financial year, which runs 1 July to 30 June. The duration, the visa and the amount change nothing, and the ATO already holds the employer's report of what you were paid.

  • A two week casual role
  • A single harvest season
  • Brief contracting under an ABN
  • Cash work that should have been reported

Cash work is the one people assume falls outside this. It does not. The income is taxable whether or not it was reported, and our guide to lodging with cash income covers reconstructing a period with no payslips.

When might you genuinely not need to lodge?

The exceptions are narrow. If you earned no Australian income at all, there is nothing to lodge. If your only income was a small amount of bank interest with the correct withholding applied, a non lodgement advice may be the right answer instead.

That is close to the whole list. A non lodgement advice is a formal statement to the ATO, not a decision you make privately by doing nothing.

Why are short stays where the refunds are?

Because withholding is calculated as though each pay period repeats for the whole year. Three months of work is taxed as though it were twelve, so the total withheld is measured against a liability you never incurred.

Eight weeks of harvest, taxed week by week at working holiday maker rates, commonly leaves most of the withheld tax recoverable, and the amounts run into four figures.

What else lifts a short stay refund?

Three items, and the first two are the ones nobody claims on their own. A period before your TFN reached the employer, withheld at 45% instead of 15%, is 30 cents in the dollar waiting to be claimed. An employer not registered with the ATO as a working holiday maker employer withholds at foreign resident rates, a separate over-withholding.

The third is Medicare. The 2% levy applies to people entitled to Medicare, so someone whose passport gives no entitlement should not be paying it, and reclaiming it needs a Medicare Entitlement Statement from Services Australia. That is worth about $500 on $25,000 of earnings, and our guide to the Medicare levy covers who qualifies.

Can you lodge after you have gone home?

Yes, and most short stay returns are. Income statements come from ATO systems rather than former employers, which matters when the employer was a packing shed you left in March.

The standard deadline is 31 October after the year ends, and returns lodged through a registered agent generally carry an extended deadline into the following May. The refund pays into an Australian bank account, so keeping that account open is the practical constraint.

Should you lodge early if you are leaving mid year?

Possibly. Someone leaving Australia permanently part way through a financial year can lodge an early return for the part year rather than waiting for the following July.

It is not automatically better. An early return is prepared before employer reporting is finalised, so the figures come from your own payslips, and it has to be amended if you come back and work again in the same year.

What decides whether it is worth doing?

Whether anything was withheld. A short stay with tax withheld at any rate almost always produces something back, and one where the employer withheld at 45% throughout almost always produces a lot.

The years that go unclaimed are the ones people talk themselves out of: three weeks of promotional work, a month of packing, a single season. Those are precisely the years with the highest proportion of over-withholding. If you worked in Australia at all and never lodged, the tax return for that year is still open, and there is generally no penalty where a refund was owed rather than a debt. Our guide to late returns explains where the penalties actually apply.

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