Does someone (not working) need to lodge a tax return?
Circumstances: Over 65 and retired. Approx. $10,000 of investment income (including franking credits) plus an additional $10,000 of assessable capital gains (after 50% discount).
So, with SAPTO and LITO, they won't have to pay any tax. But, their total income is over the $18,200 tax free threshold.
On the ATO website on the 'do you need to do a tax return' tool, one of the things says "Does dividends and distributions exceed $18,200"? and if you pick yes, then it says you do need to do a tax return. Dividends/distributions haven't exceeded $18,200 but they've had a capital gain that has resulted in taxable income being over $18,200.
So, do they need to lodge a return or can they just submit a franking credit refund form for their franking credits?