Every year between July and October, millions of Australians lodge their tax return — and for Nepalis living here, it's often one of the first big admin tasks that feels confusing. The good news: most Nepalis who worked during the year will get money back. The process is free, and once you know how it works, it takes under an hour. This guide walks you through everything.
Key dates you need to know
- →1 July — The new tax year begins. The previous year's tax return can now be lodged.
- →31 October — Deadline to lodge your own tax return if you don't use a registered tax agent.
- →15 May (following year) — Extended deadline if you register with a tax agent before 31 October. Using a tax agent gives you more time.
- →Tax year in Australia runs 1 July to 30 June — different from Nepal's Baisakh-to-Ashadh financial year.
Tip: If you miss the 31 October deadline and haven't registered with a tax agent, lodge as soon as possible. The ATO rarely penalises first-time late lodgers, but do not ignore it.
Who must lodge a tax return?
You must lodge a tax return in Australia if any of the following apply:
- →You earned any income during the financial year — employment, ABN work, Uber, Airtasker, rental income, or bank interest above $18,200.
- →Tax was withheld from your pay (shown on your payslip or PAYG summary) — you must lodge to get it back.
- →You had a Higher Education Loan (HELP/HECS) debt and earned above the repayment threshold.
- →You received any government payments (Centrelink) — you must declare these.
- →The ATO has sent you a notice to lodge — you must comply even if you earned nothing.
You may not need to lodge if you earned less than $18,200 and had no tax withheld and received no government payments. But if any tax was deducted from your wages, always lodge — it's the only way to get that money refunded.
What is the tax-free threshold?
The tax-free threshold is $18,200 per financial year. This means the first $18,200 of your income is tax-free. If you earn above that, you pay tax only on the amount over $18,200. When you start a job, you can claim the tax-free threshold on your Tax File Number (TFN) declaration — this means less tax withheld each pay. Only claim it from one employer at a time.
Important: If you hold two jobs and claim the tax-free threshold from both, you will likely end up owing tax at the end of the year. Only claim it from your primary job.
What you need before you start
- →Tax File Number (TFN) — if you don't have one, apply at ato.gov.au before lodging.
- →myGov account — create one at my.gov.au and link your ATO account. This is how you access myTax.
- →Payment summaries / income statements — these appear automatically in myTax after 14 July once your employer has reported to the ATO. You do not need to chase your employer for a group certificate — it's all digital now.
- →Bank account details (BSB + account number) — for your refund to be deposited.
- →Records of any deductions you plan to claim — receipts, invoices, or bank statements.
How to lodge using myTax — free and online
myTax is the ATO's free online lodgement tool. It's the recommended option for most employees. Here's how to lodge:
- →Log in to myGov at my.gov.au and click on the ATO tile (link your ATO account first if you haven't).
- →Go to Tax → Lodge return → start for the relevant financial year.
- →myTax will pre-fill most of your income data from your employer, bank, and government agencies. Wait until after 14 July for the most complete pre-fill.
- →Review the pre-filled income — check it matches your payslips. Fix any errors.
- →Add any deductions you are entitled to claim (see below).
- →myTax calculates your refund or bill in real time as you enter information.
- →Review the summary, confirm, and submit. Most refunds arrive in your bank account within 2 weeks.
Tip: Lodge after 14 July — myTax will have most of your income pre-filled automatically. Lodging in early July means you have to enter everything manually.
Common deductions Nepalis in Australia can claim
A deduction reduces your taxable income — meaning you pay less tax and get a bigger refund. You can only claim deductions directly related to earning your income, and you must have records. Common ones for the Nepali community:
- →Work from home expenses — if you worked from home, you can claim a fixed rate of 67 cents per hour (no need to track individual expenses, just keep a diary or calendar records of hours worked from home).
- →Work-related phone and internet — if you use your personal phone or internet for work, you can claim the work-use portion. Most people claim 25–50% depending on usage.
- →Work uniform and protective clothing — if your employer requires a specific uniform (logo, etc.) or safety equipment, you can claim the cost and laundry. Generic clothing is not deductible.
- →Self-education and study — if you studied a course directly related to your current job (not a new career), the course fees, textbooks, and stationery may be claimable.
- →Union fees — fully deductible if you are a union member.
- →Tools and equipment — items purchased specifically for work use under $300 can be claimed in full. Over $300, you depreciate over several years.
- →Donations to registered charities (DGR) — cash donations to Australian Deductible Gift Recipients are deductible. Keep your receipts.
- →Tax agent fees — the cost of using a tax agent last year is deductible this year.
Tip: You do not need to submit receipts when you lodge — but you must keep them for 5 years in case the ATO asks. A photo on your phone is sufficient.
Working Holiday visa holders — different rules apply
If you are on a Working Holiday visa (subclass 417 or 462), you are taxed differently. The tax-free threshold does not apply — you pay 15% tax on every dollar up to $45,000, then normal rates above that. Working Holiday makers can still lodge a tax return to get back any overpaid tax. You cannot claim the tax-free threshold on your TFN declaration as a Working Holiday maker.
Using a registered tax agent
A registered tax agent can lodge on your behalf and often find deductions you'd miss. Fees range from around $100 to $300 depending on complexity. The advantage: you get an extended lodgement deadline (until 15 May the following year) if you register before 31 October. This is useful if your tax situation is complex — multiple employers, ABN income, rental property, overseas income. The fee is also deductible next year. In-person tax agents like H&R Block are available across Australia, including in most Nepali community suburbs.
Common mistakes that reduce your refund
- →Not claiming the tax-free threshold — make sure your TFN declaration for your main job has the tax-free threshold box ticked.
- →Forgetting work-from-home hours — keep a diary. Even partial records are accepted.
- →Claiming deductions without records — the ATO can audit years later. Keep receipts for anything over $10.
- →Lodging too early — pre-fill data from employers may not be ready until mid-July. Lodging on 1 July often means incomplete data.
- →Ignoring bank interest — banks report interest to the ATO. If you have savings, declare the interest — it will show up in pre-fill anyway.
- →Forgetting ABN income — any income from Uber, Airtasker, or other gig work on your ABN must be declared, even if no tax was withheld.
New to Australia? Our Newcomers Guide covers TFN, bank accounts, Medicare, and more.
Go to Newcomers Guide →