The ATO advises that if an agent's clients’ taxable income is under the tax-free threshold, there are reasons why they may still need to lodge an income tax return. The most common reasons clients may need to lodge are that they:
- are entitled to the private health insurance rebate
- had pay as you go (PAYG) withheld from payments received during the year
- had a reportable fringe benefits amount on their PAYG payment summary
- had reportable employer superannuation contributions on their PAYG payment summary
- made a loss or can claim a loss made in a previous year
- were an Australian resident for tax purposes and had exempt foreign employment income and $1 or more of other income.
Agents can check if their clients need to lodge an income tax return, by referring to Do you need to lodge a tax return? 2013.
The ATO says where lodgment is not required, agents should update their clients' records to reflect that their income tax return is not necessary.