Student Tax Return 101: A No-Stress Guide for Your First Job
Updated: 4 days ago
Quick Answer:
Doing your student tax return for the first time is simpler than it feels. If your employer withheld tax from your pay, lodging your return by 31 October usually gets some or all of it back as a refund. You do not need any accounting knowledge, mistakes are fixable, and Tax Falcon can lodge your student tax return for you in about 10 minutes if you would rather not do it yourself.
What Is a Student Tax Return, and Why Do I Need to Do One?
A tax return is just a yearly summary you send the ATO showing what you earned and how much tax you already paid, so they can work out if you paid too much, too little, or the right amount.
For most students, it comes down to one simple thing: your employer probably took out a bit more tax than you actually owed, so lodging a return is how you get that difference back. It is not a test, and there is no way to fail it.
What Happens When I Start My First Job?
When you start, your employer asks for your Tax File Number and a few details, then takes care of withholding tax from every pay automatically. You do not need to do anything with that part yourself.
This is called PAYG withholding, and it just means a portion of each pay goes straight to the ATO on your behalf, based on an estimate of what you will earn for the year. That estimate is often higher than what you actually end up earning as a part-time or casual worker, which is exactly why a refund is so common.
Do I Need to Do Anything Between Starting My Job and Tax Time?
Mostly no. Just keep any receipts for things you might want to claim later, like textbooks or a laptop you use for a job related to your study.
You do not need to track anything complicated day to day. A simple habit, like taking a photo of a receipt and saving it in a folder on your phone, is more than enough to be ready when tax time comes around.
Am I Going to Owe Money or Get a Refund on My First Tax Return?
Most students end up with a refund, not a bill. If you earned under the $18,200 tax-free threshold and had any tax withheld, you are very likely getting some or all of it back.
A bill is more the exception than the rule for a first-time part-time or casual worker, and it usually only happens if you claimed the tax-free threshold with more than one employer at the same time. If that has happened to you, it is still completely fixable, just less exciting than a refund.
What Do All the Tax Terms Actually Mean?
Tax File Number (TFN): The number that identifies you to the ATO. You get one once and keep it for life.
PAYG withholding: The tax taken out of your pay automatically by your employer before you even see it.
Income statement: A summary from your employer showing what you earned and how much tax was withheld for the year.
Tax-free threshold: The first $18,200 you earn in a financial year, which is not taxed at all for residents.
Refund: Money paid back to you if you had more tax withheld than you actually owed.
What If I Make a Mistake on My First Tax Return?
It is genuinely not a big deal. You can fix a mistake with an amendment, generally within two years, and the ATO is understanding toward first-time filers who make an honest error.
Forgetting a small amount of bank interest, or missing a deduction you were entitled to, are both common and easy to correct. The worst outcome for most simple mistakes is just getting a slightly different refund amount once it is fixed, not a penalty.
How Long Does My First Tax Return Actually Take?
If you do it yourself, plan for somewhere between twenty minutes and an hour, depending on how organised you are. With Tax Falcon, it usually takes about 10 minutes.
Most of the time is spent tracking down details rather than the actual lodging, which is why having your Tax File Number, income statement, and any receipts ready in advance makes such a difference. See our full student tax return checklist for exactly what to gather beforehand.
What Do I Need Before I Lodge My First Tax Return?
Your Tax File Number.
Your income statement from your employer.
Your bank account details for any refund.
Any receipts for things you plan to claim.
You do not have to work any of this out alone. Tax Falcon's Student Tax Return service, from $69, has registered agents who handle your first return for you, answer your questions, and make sure it is done right the first time.
For the ATO's own guidance on lodging your first tax return, see ato.gov.au.
Frequently Asked Questions
Do I really need to lodge a tax return for my first part-time job?
If any tax was withheld from your pay, yes, it is worth lodging so you can get that money back. If nothing was withheld and you earned under $18,200, a simple non-lodgement advice covers it instead.
What if I only worked for a few weeks at my first job?
It still counts. Even a short period of work with tax withheld is worth lodging for, since you may be entitled to a full refund of what was taken out.
Will lodging my first tax return affect my Centrelink payments or family's benefits?
It can factor into income tests for payments like Youth Allowance, so it is worth letting Centrelink know about significant income changes directly rather than guessing how it applies to your situation.
What happens if I never lodge my first tax return?
You simply will not get back any tax that was withheld, and the ATO may eventually follow up asking why nothing was lodged. It is generally much easier to just lodge it than to leave it hanging.
Can my parents help me with my first tax return?
Of course, plenty of students get help from a parent the first time around. Just remember it still needs to reflect your own income and circumstances, not theirs.
Behind on a tax return, or need to fix one you've already lodged? Start My Return with Tax Falcon's Student Tax Return service, from $69, and let its registered agents sort it out properly.
