Did you know, if you’re an Australian Resident the first $18,200 of your income is tax free? This is better known in the ‘tax world’ as a tax-free threshold and reduces the amount of tax you have withheld from your wages during the year.
When you start your new job, your boss will give you what is called a Tax File Number Declaration to complete.
The tax-free threshold equals the amounts below:
$350 per week
$700 per fortnight
$1,517 per month
If your income goes over the $18,200 threshold, you’ll pay tax on the remaining amount.
If you have more than one job and it’s your first tax return, well done! You can only claim the tax-free threshold for one of the jobs. It’s best to claim it for the job with the highest wage, then your other employer will withhold a higher amount of tax with your second job. The plus side is, if they withhold too much tax, you’ll get a bigger tax refund!
Note that the information provided is general in nature and subject to change, please contact one of our professionals who can evaluate your circumstances and provide more accurate advice to your current situation.
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