Pay Less Tax With The Tax Free Threshold
Australian and New Zealanders who reside and work in Australia are able to receive the first $18,200 income tax-free. This is known as the Tax Free Threshold. The $18,200 is the total amount you can receive tax-free which also includes most government pensions and allowances. Generally speaking, most employers will include this in their payroll calculation if you are working for them the following tax year.
Issues can arise when you also receive another government pension or allowance without tax withheld (Yes you can contact the relevant government department to have tax withheld). Another issue arises when you change employers during the tax year and if you have already claimed the tax free threshold with the previous employer. Claiming it again will inadvertently create a tax issue in the future. So to avoid
Avoid This Tax-Free Threshold Mistake
If you receive a government pension or allowance and also work as an employee; inform your employer you are not eligible for the tax-free threshold. Alternatively, contact the relevant government agency and ask they withhold tax on the payment.
If you change employment during the year or have received a government pension or allowance; inform your now employer you do not wish to claim the tax free threshold.
If you have multiple jobs during the year, you can only claim the tax-free threshold once. Generally, it is best to claim it on your main job.
Need Some More Help?
We can a tax calculator to help you estimate your tax return. With this calculator you can easily get an estimate of your tax return. Once complete, you have the option to create a One Click Life account, which will give you to option to lodge your Tax Return.
If you need help, you can login to One Click Life for support.