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Are you a resident of Australia and would you like to know the tax-free threshold? All taxpayers who receive income are expected to pay taxes. However, the first $ 18,200 of your income is not taxable, which is the tax-free threshold.
So if your total income is less than $ 18,200 per year, you are expected to pay taxes. Any amount in excess of $ 18,200 is taxable. To make it easier to understand, the tax-free amount is equal to:
$ 1,517 per month or
$ 350 per week
Once you are employed, you must complete the tax file number declaration form, where the employer will be informed if you wish to claim the tax-free threshold. In cases where you have more than one source of income and the total is more than $ 18,200, you can only claim the tax-free threshold for one job.
Some residents claim a tax-free threshold from all sources of income, which is a serious tax trap. At the end of the year, you will receive a tax debt when you submit your year-end tax return. This is usually a problem for most people as it is determined by the ATO. Ideally, the first job, the highest paying, will have a tax-free threshold. The other jobs are usually performed and you have a tax liability at the end of the financial year.
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Tax-free threshold for residents with multiple jobs
There are a number of possible scenarios that can occur if you have multiple jobs. You may realize that you are getting a lower refund or even have a tax bill when you file your tax return. The possible reason for this is the fact that your employer may have withheld less tax and because of this the discrepancy in the tax return filed. There are progressive tax rates and as such it is advisable to ensure that the tax-free threshold is clearly defined.
To prevent such a problem from recurring in subsequent years, you need to have a clear plan for the tax-free threshold. You need to analyze your jobs and identify the one that should cover most of the tax for the year. You can arrange this with the payroll office in your company. If you are confused about this, you should contact registered tax advisers who will help you make the right decisions. A professional tax advisor can advise you on the income you have obtained from each source and let you make the appropriate adjustments.
Contact Numbers Pro for more information about the tax-free threshold. We will help you determine the best course of action and ensure that you do the tax deductions correctly. You will receive the maximum reimbursement at the end of the year. Call us today and let us analyze your case to help you with the correct tax return.
