Part-Year Tax-Free Threshold – Explained Simply

What’s the Part-Year Tax-Free Threshold?

If you become or stop being an Australian tax resident partway through the year, you don’t get the full $18,200 tax-free threshold. Instead, you get a smaller version, based on how many months you were a resident.

How’s It Calculated?

You get:

• $13,464 flat amount, plus

• $4,736 × (number of months you were a resident ÷ 12)

Tip: Count the month you arrived or left as a full month.

Example:

You became a resident in October. That’s 9 months (October–June).

Tax-free threshold: $13,464 + ($4,736 × 9 ÷ 12) = $13,464 + $3,552 = $17,016

You only pay tax on income above $17,016.

What If You Were a Resident for Only Part of the Year?

• You get the part-year threshold for the months you were a resident

• For any non-resident period, you pay tax on every dollar earned (no threshold for that bit)

What You Need To Do

When doing your tax return:

• Enter the date you became or stopped being a resident

• The ATO will calculate your part-year threshold automatically

FAQ – Real Questions, Real Fast

Q: I arrived in March. How many months do I count?
A: March to June = 4 months (count March as a full month).

Q: I left in December. How many months?
A: July to December = 6 months (count December as a full month).

Q: I was a non-resident all year. Do I get any threshold?
A: No — you pay tax on every dollar earned in Australia.

Bottom line:
If you’re only a resident for part of the year, your tax-free threshold is trimmed down. But don’t stress — Gotax handles the maths. Just make sure you enter the right dates.

Let GoTax Keep It Easy

Moving countries is tricky enough — let GoTax handle your tax return. We’ll apply your part-year threshold correctly, so you don’t overpay.

Start your return now: www.gotax.com.au/guest-user