Tax-Free Threshold What That Means? Lets Find Out
When you are living in Australia and working there, you will be earning some income. Any income that you earn falls under the scanner of the taxation department and you might need to pay some tax. But you might be aware of the tax-free threshold of $18200. This means that your income amounting to this value isn’t taxed. But it’s not that simple as it looks. That’s why there’s this quick guide to help you understand the tax-free threshold and how to make the most of it.
The Tax-free Threshold
The first $18200 that you are earning from your job isn’t taxable. That’s a straight calculation of $1517 per month or $350 per week. But this doesn’t apply directly to your total income from multiple sources. So, if you are earning a total of $18200 from multiple jobs, you might still be liable for some tax on your income.
Applying for Tax-free Threshold with Multiple Jobs
As soon as you start your first job, you are required to apply for the Tax File Number. This number is your identification for the ATO and it includes all the details of your earnings, deductions, and taxes. And while applying for the TFN, you can apply to claim for a tax-free threshold.
Here, you need to apply for the threshold for only one job if you are earning from multiple sources. Those who apply for the tax waiver for multiple jobs end up with tax debt. And failing to pay tax can land penalties. However, making calculations and understanding what job to consider can be easy (consider the highest paying one) and difficult (consider future growth potential). But a professional tax accountant in Toongabbie can help you make the right choice and file accurate taxes every year.