ATO’s $70,000 Threshold Change Could Save You Hundreds This Tax Season

The ATO has quietly lifted the income cap for free tax return assistance, opening access to thousands of Australians. This change could mean unexpected savings for many taxpayers.

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ATO’s $70,000 Threshold Change Could Save You Hundreds This Tax Season - Credit: Canva | en.Econostrum.info - Australia

The Australian Taxation Office (ATO) has expanded access to its free Tax Help program, lifting the income threshold from $60,000 to $70,000. This change is aimed at helping a broader group of Australians file their tax returns accurately without incurring additional costs.

The decision comes at a time when the ATO is working to reduce the financial burden of tax preparation. By widening eligibility, the agency hopes to ensure that more individuals with simple tax affairs can benefit from expert guidance provided by trained volunteers.

A Wider Reach for Low and Middle-Income Earners

According to ATO assistant commissioner Rob Thomson, the higher income cap will allow thousands of additional taxpayers to qualify for the Tax Help program. This initiative primarily supports those with straightforward tax obligations who earn $70,000 or less annually.

Available nationwide, the program is staffed by accredited volunteers who undergo extensive training and are authorized by the Australian Taxation Office to provide assistance. Participants can receive help with a range of tax-related tasks, including lodging tax returns, amending previous returns, claiming refunds of franking credits, and notifying IT if a tax return is not required. Volunteers also offer guidance for setting up and using a myGov account, which is increasingly essential for managing tax obligations.

For many taxpayers, this free service represents an alternative to professional tax agents, whose fees can be a significant expense. The ATO notes that more than six million Australians claimed tax agent-related deductions in the 2022–23 financial year, with the average deduction reaching $370.

Important Deadlines for Taxpayers

The ATO has reminded taxpayers that the deadline for lodging their tax return without a registered tax agent is October 31. Those who engage a tax agent must register with the agent before this date to avoid potential penalties.

The agency is also emphasizing the importance of accuracy. Many errors in previous years have been linked to incorrect or incomplete lodgements, which can delay refunds or trigger compliance checks. By using the Tax Help program, the ATO aims to reduce such mistakes.

Alternative Assistance Through the National Tax Clinic Program

For individuals who do not qualify for the Tax Help program, the ATO supports the National Tax Clinic program. Delivered through TAFEs and universities, this initiative provides guidance to those unable to access or afford professional tax services.

These clinics, along with the ATO’s digital tools such as the ATO app, myTax, and the ATO Community platform, form part of a wider strategy to ensure that all Australians, regardless of income level, can meet their tax obligations with confidence and accuracy.

The increase of the income cap to $70,000 reflects the ATO’s commitment to easing tax-related pressures on low- and middle-income earners. By combining volunteer-led support with broader accessibility, the agency is making it easier for Australians to navigate the tax system effectively and at no cost.

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