How to Claim Tax Free Threshold Australia

2012-2013 Tax-Free Threshold Australia

Luckily, the first $18,200 of your income is tax-free.

The tax-free threshold has more than tripled since 2011-2012 at $6,000 to a whopping $18,200. This threshold currently remains for the 2017 tax year.

Australia’s progressive tax code is divided into five different income brackets, each with its own tax rate.

The tax rate for the lowest income bracket, that which falls between taxable incomes of $0 and $18,200, has a tax rate of 0%. The $18,200 upper limit of the lowest bracket is what’s known as the tax-free threshold because the first $18,200 of your income is not taxed.

This means that you only pay tax on the income that falls above this lowest bracket. If all of your income is within this first bracket, you pay no tax at all. And even if your total income falls into a higher bracket, you still pay no tax on the first $18,200 of your income. When you factor in the Low Income Tax Offset (LITO), you can earn up to $20,542 without paying any tax.


How to Claim tax-free threshold Australia

When you claim the tax-free threshold, you reduce the amount of tax withheld from your wages over the course of the year. In terms of PAYG withholding, claiming the tax-free threshold can amount to an extra

  • $350 per week
  • $700 per fortnight
  • $1,517 per month

If you are an Australian resident for tax purposes, you must let your payer (including Centrelink) know that you wish to claim the tax-free threshold by marking “Yes” when you fill out your Tax file number declaration. If you have more than one payer, it’s generally best to claim the tax-free threshold from the one that pays you the most.


Part-year residents

If you are a part-year resident or a newcomer to Austrailia, your tax-free threshold will be adjusted to the flat amount of $13,464 or the remaining $4,736 for how many months you resided in Australia during the income year; including the month you arrived. This will apply to you if you:

  • entered during the year to reside in Australia, and
  • left Australia with the intention to stay overseas during the year

However, not everyone gets to claim the full tax-free threshold of $18,200, including those who:

  • left Australia permanently during the year, and
  • are not an Australian resident for tax purposes


The tax-free threshold is just one of the many benefits you can take advantage of when you lodge your return. Take advantage of E-Lodge to make sure you maximise your refund.

 It’s Easier With E-Lodge™

Photo via adesigna on Flickr.

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153 Responses to “How to Claim Tax Free Threshold Australia”

  1. Darren edmondson says:

    Hi I’m tiring to do my daughters tax return she just started to work this year so this is her first return she has not need to pay any tax us she doesn’t earn enough when I tried to send it wouldn’t send. Regards Darren

  2. Tax Advisor says:

    Hi Darren,

    This tool from the ATO might be helpful for figuring out if your daughter needs to lodge a tax return:

  3. Astrid Harris says:

    At the end of the year I made roughly $11000 from one employer and had the tax free threshold for this job… What percentage of that should have been taken out for tax?? I only had $800 tax witheld and this seems to me to be too low.

  4. Tax Advisor says:

    Hi Astrid,

    It depends on whether you’re a resident for tax purposes or not. If you are a resident, you actually won’t end up owing any money on that income because it’s all below the tax-free threshold.

  5. Glenda says:

    Hi, I’m currently studying full time and I work 2 casual jobs. Am I able to claim the tax free threshold from both employers if my income is still less than $18,200?

  6. Tax Advisor says:

    Hi Glenda,

    If you are certain your total income for the year will be less than $18,200 you can claim the tax-free threshold from each payer.

  7. Tanya says:

    Can I change it if I ticked the no tax free threshold box once the new financial year has started. What would my employer need to do ?

  8. Tax Advisor says:

    Hi Tanya,

    You should fill out a new Tax file number declaration and give it to your employer.

  9. Nadia says:

    Hi I paid $36278 tax from one employer and $4846 tax from another employer,what do recon I do or do you think I will get any money back??

  10. Tax Advisor says:

    Hi Nadia,

    You should use our tax calculator:

  11. Alex says:

    Hi I earned approximately $24,700 in this finacial year with $1300 in tax taken out, but Etax is estimating my return to be approximately $150. How is it that I will get so little back this year even though I applied for the tax free threshold when I obtained my TFN? Was I meant to apply for it in every consecutive year?

  12. Tax Advisor says:

    Hi Alex,

    That refund amount is taking into account the tax-free threshold. The amount of your income that was over the tax-free threshold was $6,500. That means you owe 19% of this amount in taxes. That adds up to $1,235, just barely less than was withheld. The only way to increase your refund would be to reduce your taxable income with deductions or reduce your tax liability with offsets.

  13. Jamie says:

    My daughter would be lucky to make $4000 a yr at her part time job . Would she claim the tax free threshold ?

  14. Tax Advisor says:

    Hi Jamie,

    If that employer is your daughter’s only payer then yes, she should definitely claim the tax-free threshold and she won’t owe any tax on that income.

  15. Anthony says:

    i get taxed a lot. $9000 in the first year and $14000 in the second. i got back $5000 and around $7000 for those years. did i fill in anything wrong for the tax free threshold and if so does it affect how much child support i am paying?

  16. Tax Advisor says:

    Hi Anthony,

    I can’t say if you filled in anything incorrectly with the tax-free threshold. Both of those refund amounts seem really high though. Ideally, you want your refund to be as close to $0 as possible, so that you can spend that money over the course of the year. Are you sure that you have claimed the tax-free threshold from one of your payers? Not claiming it could explain the high amounts withheld.

  17. Gail says:

    Hi I am 64 years old and work as a retail assistant earning between $350.00 and $400 a week do I have to pay tax on that

  18. Tax Advisor says:

    Hi Gail,

    You will only have to pay tax on your income if it is greater than $18,200, which is the tax-free threshold. To find out if you have to lodge a return, use this tool on the ATO website:

  19. Jorge says:

    Hi, the deadline to lodge the tax return is 31st.of October 2013 but if it is prepared by a tax advisor, when is the deadline to lodge it without penalties?
    Thanks and kind regards.

  20. Tax Advisor says:

    Hi Jorge,

    You should ask your tax agent what their late lodgement date it.

  21. Dotty says:

    Hi I wrk with 2of my friends.same hours.they both got 4000 tax return and I got 1200.why would tht b

  22. Tax Advisor says:

    Hi Dotty,

    You should talk to your tax return preparer. I can’t possibly know why that is.

  23. Nele says:

    I just lodged my tax return with a tax accountant in australia, i was there 2012/2013 for 10 months on a working holiday visa. I got the tax checklist back with the final numbers, and it says that my Estimated tax refund will be 91 Dollars. I am quite frustrated and concerned about that and would like some help and answers if that could even be possible? and if not, how can i claim my money back rightfully?

  24. Tax Advisor says:

    Hi Nele,

    Obviously I can’t really give you any information without knowing your situation in greater detail, but I can say that this likely comes down to an issue of residency. Did you lodge as a resident or a nonresident. Many nonresidents assume that they will get all of their tax back, but that’s not necessarily true. In fact, they generally pay a higher tax rate than residents as they cannot take advantage of the tax-free threshold.

  25. Christopher Esguerra says:


    My wife has 2 jobs, a part-time permanent and a casual. Based on your guidelines tax- free threshold should be claimed to the one you are earning most. But in my wife’s case she do not claim it in the job where she earn most and in the other job that she earns less she then claiming the tax free. Will there be a problem when she lodge the tax return? Combined earnings for those two jobs will be more than $18,200.

    Thank you

  26. Tax Advisor says:

    Hi Christopher,

    It should still be okay when she prepares her taxes. The ATO just recommends that you claim the threshold at the higher paying job because it makes your withholding closer to your overall tax liability. Claiming the threshold for the lower paying job may just mean that your refund/tax due is higher than it otherwise would have been.

  27. Margaret says:

    if you are a high income earner with total income of around $75,000 – $85,000 do you still qualify for the $18200.00 tax free threshold

  28. Margaret says:

    If you need to talk to someone in person regarding your tax who can you contact in Adelaide

  29. Tax Advisor says:

    Hi Margaret,

    All Australian residents can take advantage of the tax-free threshold – it is built into the tax rates themselves.

  30. Tax Advisor says:

    Hi Margaret,

    If you are lodging your taxes with E-Lodge you can speak to our accountants by phoning 03 5174 0961 Monday – Friday 10:00 AM – 4:00 PM AEST.

  31. caroline says:

    hi im starting to partime jobs will be working around 22 hours in each job what do i tick when filling out my tax form i am a resident for tax? will i be paying a lot in tax for the second job?

  32. Tax Advisor says:

    Hi Caroline,

    You need to fill in all of the income information for each of your jobs. If you are preparing your taxes through E-Lodge, there will be an opportunity to enter two different jobs.

  33. gizzard says:

    I have virtually no income. My partner (not de facto) is in a higher income bracket. They have a large amount of money in savings. Can they gift me the money into an account that I own so that the interest is part of my income in the tax-free threshold? I’m assuming that if I was to gift any interest earnings back then this would be considered tax avoidance on their part.

  34. Amina says:

    Hi. I am a resident for tax purposes. My gross income per fornight is around $3200 and the tax witheld is always 24% and I only have 1 employer. Is this right? I am supposed to have this much deduction evry forfnight? On the previous financial year my annual gross income was 63,000 and I only got 1500 tax refund. I was on a working visa that time. Does the tax witheld change when you become a Permanent resident. As I just got my residency lately. Thank you.

  35. Tax Advisor says:

    Hi Amina,

    Yes, the amount of tax withheld should change when you become a resident for tax purposes, as residents and nonresidents are taxed at different rates. To figure out if your tax withheld is correct, you can try using these calculators on the ATO website:

  36. gizzard says:

    Hi Tax Advisor
    Are you able to comment on my query of 15 October? If not through the web page then by email?


  37. Lenore says:

    Hi there, I was on the disability support pension for the last 12 months. ($18857.00) I earned $1,737.00 from a part time job (with $70.00 tax withheld) , $400.00 for being a movie extra and $920.00 for some small sewing jobs. I was told that the disability pension is non taxable income , and that I don’t need to put in a tax return this year because the rest of my income is way under the limit……. Is this correct?

  38. Tax Advisor says:

    Hi Lenore,

    I suggest using the ATO’s online Do I need to lodge a tax return? tool –

  39. Mike says:

    Gizzard asked you a question that I too would like to know the answer. Are you able to provide one? It could be really useful to me.

  40. Gaye says:

    My 15 year old daughter has just started working partite at KFC and they are taking tax out is that right she earned $82.82 gross and paid $17 is that right cheers Gaye

  41. Tax Advisor says:

    Hi Gaye,
    It depends. The employer is the one who decides how much tax to withhold based on information provided on the Tax file number declaration and withholding declaration. Here is a link to a more in depth answer to this question on the ATO website.

  42. Douglass says:

    I’m a self funded business owner/manager. If I earn less than the tax free threshold, should I still have to pay child support?

  43. Tax Advisor says:

    Hi Douglass,
    It depends. To find out, you will have to go to the Payment estimator on the ATO’s website. Here is the link;

    Simply fill in your information and you will find out if you need to pay child support and if so, how much.

  44. saranga says:

    Hi. I am a PR holder in Australia & 1st time I came in 2009 & stayed for 2 weeks. Hope to come in 2014 & settle down permanently. I would like to am I residence for tax purposes at present? Also would like to know is my worldwide income now I am earning is going to be taxed?

  45. Tax Advisor says:

    Generally, the rule is you have to be a resident of Australia for 6 months to be considered a resident for tax purposes. This link to the ATO website may help you with your question.,-income—tax-returns/What-is-the-tax-free-threshold-/

  46. Andrea says:

    I have just started casual work. With the tax free threshold does that mean no tax should be taken out until I have earned the $18200.00. I’m really confused on how this all works. I have been employed now for 4 weeks. My first 2 pays I earned roughly $630.00 and was taxed approximately $65.00 on each pay. My 3rd pay I earned $368.00 and was taxed $4.00 and then my last pay I earned $659.00 and I think it was $72.00 that was taken out for tax. Should I be taxed this amount if I requested the tax free threshold or am I wrong in thinking no tax is taken out at all until I have earned the $18200.00. Also can’t understand hy I was only taxed the $4.00 on my 3rd pay. I know I only earned half the amount of the other 3 but the way my employer has been taxing me it doesn’t make sense to me that it was only $4.00 compared to te others. Any help would be greatly appreciated.

  47. Tax Advisor says:

    Hi Andrea,
    When you file your taxes, you will report the income you are receiving for the year. Since you have been paying taxes out of your paycheck then you’ll most likely receive a tax refund when lodging from the ATO.

    I would ask your employer about the varying amount of money being taken out from your check. It should be somewhat consistant.

  48. Andrea says:

    Thank you so much for your very quick reply. You have been really helpful.

  49. chris says:

    Hi I just Stared my new job as a casual, I got paid $707 and taxed $197 over 21hs of work, just wondering why it’s so high?But i have another job I work once a week and hardly get taxed.

  50. Tax Advisor says:

    Hi Chris,
    Hi Chris,
    It depends on how much you are making. How many days a week do you work at the job where you make $707? The job where you work once a week is not withholding any amount, and the other job is.

    It many situations, the primary job, the withholding tax rate is lower because of the existence of a tax-free threshold. All other work has tax withheld based on a rate that excludes the tax-free threshold. However, it all depends on how much you are making. If you have taxes withhold that should not be withhold, you will end up getting a tax refund when lodging your taxes.

  51. Elaine W says:

    Hi there, I hold a 457 visa and currently a housewife. I am thinking of looking for a part time/casual job. Will I be taxed if I earn says $300 a week? How does the tax works for 457 visa holder on part time job? Please advise. Many thanks.

  52. Tax Advisor says:

    Hi Elaine,
    It will depend on if you are considered an Australian resident for tax purposes or not. This link to the ATO’s website will help you determine if you are considered a resident for tax purposes; Here Residency for tax purposes is not the same as citizenship. If you are a resident for tax purposes, you can take advantage of the tax-free threshold, meaning the first $18,200 of your yearly income is not taxed.

  53. John says:

    I am currently working as a casual earning 45,000 before tax and claiming the tax free freshold. I am thinking of taking up a second casual job that would have me earning 15,000 before tax. How much tax would i have to pay on the new job?

  54. Tax Advisor says:

    Hi John,
    For individuals earning between $37,0001 and $80,000, the tax rate is $3,572 plus 32.5% on everything you earned over $37,000. That means for the two jobs you would pay around $11,000 in taxes. For the second job alone, taxes would be around $4875 (if you consider you are paying 32.5%).

  55. Mary says:

    Hi there, just got a permanent job recently. In my tax declaration i ticked No in question “do you want to claim tax free threshold”. And tax deduction from my pay is too high. Like if my gross is $1,928 in a fortnight including overtime, i pay tax for $570. Is that right or should i get a refund when i file my tax at the end of financial year? Thank you.

  56. Tax Advisor says:

    Hi Mary,
    Great question. You will most likely receive a refund for the tax deducted from your pay, when filing your taxes (up to the income threshold). You’ll be granted this refund as long as you remember to indicate you are an Australian resident for tax purposes when filing.

    Australian residents for tax purposes can take advantage of the tax free threshold which means the first $18,200 of their income is not taxed. That means, for the tax taken out of your taxes, you will be refunded for on your tax return, up to your first $18,200 of income.

  57. Victoria says:

    Hi, I just started a new full time job and I need to fill in the part about the tax free threshold. Do you tick yes or no? I ticked yes and the boss is saying this is wrong and I have to say no. Can you please advise what I should put.

  58. Tax Advisor says:

    Hi Victoria,
    It’s up to you. Australian residents can take advantage of the tax free threshold , the first $18,200 of your yearly income is not taxed. If you pick “yes” then the first $18,200 of your income will not be taxed from your paychecks. However, if you click no, then you will be taxed much more from your paychecks and later when lodging your taxes, will receive a refund on the tax you paid and not required to pay.

  59. Ksk says:

    I hold a 457 visa and am intended to stay for more than a year here on my full time employment. Have checked the link in this blog and am satisfying “Resident of Australia for Tax purpose”. I have started employment in February, am I eligible for entire $18,200 threshold?

    Also, I have dependant spouse(not working) and kid. Am i eligible for claim family tax benefit or dependant spouse benefit?

  60. Jason says:

    Hi I am on a 457 visa and have paid 11000 in tax to date. Friends have told me that I will get all the tax back but this does not sound correct to me. Just wondering if this is true

  61. Ben says:

    Hi, if Im under 18 and work part time and earn over $18,200 a year and pay 31.5c to the dollar (after the employer equating my annual pay would fall into that tax bracket), will I get roughly the one-third of taxable income under the tax free threshold back?

  62. Tax Advisor says:

    Hi Ben,
    It depends on how much your total income is. I would suggest learning more about how income on individuals under 18 on the following ATO page;

  63. Tax Advisor says:

    Hi Jason,
    When lodging your taxes, keep in mind that generally if you’re in Australian working and living for at least six months, you’re considered a resident for tax purposes. If this is the case, you’ll be able to claim the tax-free threshold meaning the first $18,200 of your income is not taxed. In that case, any extra tax you have paid will result in a tax refund when lodging your taxes.

  64. sheila says:

    Hello. This is my first time filling a tax. Well actually 2nd time. I moved here last year on 1st June, and lodge a tax return for that one month. I got back the while amount which was just $780, this year I have made more than $50000 in my income and my tax is somewhere $13000 that was cut from the whole year. I am on a 457 temporary visa. I am not sure if I had checked yes for the tax free threshold on the TFN declaration. I am not sure if I will get it or not. I have been told that I will get back the first $6000 of my wages. Confused here. How much do you think I will get back? Do I mark yes on I am a Australian resident for tax purposes? Thanks.

  65. Kris says:

    Dear Tax Adviser,
    2 years ago when I started a new job, by mistake I answerd “No” to the question if I want to claim the tax-free threshold from this payer, dispate I was eligible to do so. I didn’t realise my mistake (I’m doing my tax returns by myself) until now.
    Is it possible and how I could recover that money?

  66. Tax Advisor says:

    Hi Sheila,

    You may want to refer to our Tax Calculator. This will give you a fair estimate once you enter your information into the six provided fields.

  67. Tax Advisor says:

    Hi Kris,

    You will most likely (or already did) receive a refund for the tax deducted from your pay, when lodging your taxes (up to the income threshold). You’ll be granted this refund as long as you remember to indicate you are an Australian resident for tax purposes when filing.

    Australian residents for tax purposes can take advantage of the tax free threshold which means the first $18,200 of their income is not taxed. That means, for the tax taken out of your taxes, you will be refunded for on your tax return, up to your first $18,200 of income.

  68. Craig says:

    Hi Tax Advisor,

    I’m on a 457 visa (which i believe is permanent resident for tax purposes), on my certificate this year and last payslip for the year, it indicates my full gross for the year was taxable. (around 80,000 for the year and I have paid tax around 20,000). Does this mean i can claim my tax back from the first 18,200 of my gross pay? If so, do I need to indicate this to the tax agent I use? Is it possible to claim for previous tax years at this point?

    If this isn’t the case, can you explain why please? As it appears to me that I have paid tax on my whole gross pay and I doesn’t appear like I have received my tax free threshold.

  69. Tax Advisor says:

    Hi Craig,

    I suggest taking a look at the Australian Government website for further information about temporary work visas (subclass 457). There is also contact information on that website in case the information they have provided does not answer all of your questions.

  70. Martha says:

    Dear Tax Advisor,

    I am a resident for tax purpose. In this (2014-2015) tax year I am about to have gross income $39,520 annualy. Is it more beneficial to claim tax-free threshold or not. If I claim tax-free threshold will I be obligated to pay anything at the end of tax year or after $18,200 the tax will automatically increase? And also could I change tax-free threshold claim by completing the ‘Withholding declaration’ if I said ‘No’ on Taxation Declaration form?

  71. Tax Advisor says:

    Hi Martha,

    I suggest taking a look at the “Tax-Free Threshold” information page on the ATO’s website. This gives a detailed guide that should answer your questions.

  72. Branden says:

    Hi there,

    My wife did not earn anything this year at all. She just received the Private Health Insurance Statement of which she was under my name with Medibank – I however did not claim this when I lodged my tax return.
    Does she have to complete a tax return to put the health insurance info on it or does she not have to complete a tax return because of the no income earned?

    Also should I have claimed her as a dependant considering she earned no income? She is not a student or sick or anything of the sort and we are both 22yrs of age.


  73. Tax Advisor says:

    Hi Branden,

    I suggest taking a look at the ATO’s tool to find out if you need to lodge a tax return. This tool only takes a few minutes to complete and will give you the best decision based on the information you provide.

    Also, the ATO has specific rules and regulations for who qualifies as a dependent for tax purposes. This is based on several different factors including their income, how much you help them with living expenses, etc.

  74. Katrina says:

    I am permanently employed by the DEC as a teacher and am currently working part time . I have been doing casual teaching at the same school but getting taxed as a second job. This doesn’t seem fair as it is the same job. Is this correct?

  75. Tax Advisor says:

    Hi Katrina,

    You may want to speak with your payroll department about this specific issue.

  76. Beatrice says:

    Hi Tax Advisor
    My salary is $55,000 a year (for half of the past financial year my salary was $50,000) , I have a HELP debt and get paid monthly. Every month when I get my payslip I make sure the correct amount of tax is being taken out by checking on the ATO’s tax witheld calculator and it is always correct.

    I have just done my tax return and have been told I need to repay $1000. Would you be able to explain to me why? I don’t understand when every month I am paying the exact tax amount the ATO is advising for my income and HELP debt, yet I now have to pay more?

    Thanks so much

  77. Tax Advisor says:

    Hi Beatrice,

    I suggest contacting the ATO since it seems that they have not advised you correctly.

  78. Matt says:

    hi there, i earnt $13212 and paid $2383 in tax, i left the country part way through the tax year. am i able to claim any of the tax paid back? would the tax free threshold apply?
    i appreciate your thoughts.

  79. Tax Advisor says:

    Hi Matt,

    Please take a look at the ATO’s guide for claiming the tax-free threshold.

  80. Charlie says:

    Hi, I am currently working 2 jobs, I’m earning 35000 gross a year for my first job and 4800 for the second one. I just want to know if I need to pay tax for my part time (second) job? And if I will receive tax refund at the end of the year?

  81. Tax Advisor says:

    Hi Charlie,

    I suggest taking a look at the ATO website where they discuss the tax-free threshold amounts and requirements for individuals.

  82. Joanne says:

    Dear Tax Advisor,
    I’m so frustrated, can you explain why tax withheld from my employer is correct (have checked against fortnightly tax table – incorporating Medicare levy) yet on my notice of assessment an additional levy of $1081.30 is added. I have private health insurance, and all very similar to last year, with a $400+ return. Phoned ATO, not sure? Not enough tax withheld ? Pay offices (local & head) checked, they say correct tax withheld ! So why $940 tax debt ? Have to pay by 1 December, just want to know why, & do I need to get more withheld & why??

  83. diakko santaali says:

    i just start working in australia and this is my first year of working in here unfortunately i did not know many things and i was getting pay from the centrelink also but i just stopped that and i reported that i got a job and i stopped getting pay from them so my question is do i take back all i payed as tax in the first year of starting work in australia?

  84. cynthia says:

    Hi. Just started my job and I’ve realized after my first pay I’ve ticked no to the tax free threshold instead of yes. Can I change this and is there a way to get the money back?

  85. Tax Advisor says:

    Hi Joanne,

    That is extremely frustrating. I suggest using the ATO Tax Withheld Calculator to see the amount that should be withheld. Once you have this amount, I suggest speaking with your payroll department about the situation. They may be able to offer a bit more detailed information about your specific situation.

  86. lauren says:

    If work a full time job and earn $37000 a year and then work weekends (saturday at a casual job) will i be taxed 50%

  87. Tax Advisor says:

    Hi Cynthia,

    You must let your payer (including Centrelink) know that you wish to not claim the tax-free threshold on your TFN declaration. They will then be able to tell you how to proceed.

  88. Hayley says:

    Hi Tax Advisor,

    I am 24 yrs old and I’m working 2 jobs but I will be earning less than $20,542 a yr so can I claim the tax free threshold from both jobs? And will I be taxed anything? Thanks

  89. Tax Advisor says:

    Hi Hayley,

    It would benefit you most to claim the tax free threshold at the job that serves as your main source of income. You may end up having a tax bill if you claim it at both. Also, if you decide to claim it at only one place of employment, be sure to notify your other employer to make it clear that you won’t be claiming it there as well.

  90. ashish says:

    hi there , my taxable income till june 2015 is 49000 and my tax is 11000. how much tax can I get back?

  91. Terressa Elliott says:

    Hi there I earn $21,000 a year for a part-time job (tax free threshold), and have been offered another part-time job of about $2,000 a year. Will I pay very heavy tax on that money, and if I have lots of deductions, can I claim back some of this. I am just weighing up if its worth taking on the extra work if I have to pay too much tax.

  92. Tax Advisor says:

    Hi Ashish,

    How much money issued back to you will depend on a few more key factors. I suggest taking a look at our Tax Calculator tool. This will allow you to enter more of your information and give you an accurate idea of the amount you will receive this year.

  93. Tax Advisor says:

    Hi Terressa,

    Congratulations on the new job offer!

    The first $18,200 of your annual income will not be taxed since that is the tax free threshold. Since you are making over the tax free threshold at one place of employment, the other source of income ($2,000/year) and the $2,800 from the original job would be taxed at the higher ‘no tax-free threshold’ rate.

    Therefore, to answer your question, you will be taxed at a higher rate for the second job since you will not be eligible to claim the tax free threshold after exceeding it with your first job income.

  94. Stephen says:

    I have recently started a part time job and claimed the tax free threshold. I have been on newstart payments from centrelink all year and i still receive part payments for low income and i might just go over the $18,200 tax free threshold.

    My question is do i need to change the withholding declaration to not claim the tax free threshold.Does it matter if i don’t claim the threshold from either centrelink or my job and still not be taxed under $18,200 when i do my tax return?

  95. maria Tiliacos says:

    Although I am an Australian citizen, I am a non-resident for tax purposes. I have approximately $500k on term deposit and pay 10% withholding tax. Does my tax position change if I switch to shares and bonds which pay better than 3.2% interest? I am confused as I read somewhere that non-rsidents pay 29cents in the dollar which is at odds to the 10% withholding tax. Is it one or the other or both?

    I have an old TFN (about 30 years old). Can this still be used to invest?

  96. Dominica says:

    My friend transferred 6300AUD to me as a gift. Will I need to pay tax for it? Thanks in advance.

  97. Tax Advisor says:

    Hi Dominica,

    Gift tax may seem tricky. Unless the money is payment for work done, it would seem that the lump sum could be received by you tax free. This would be a case in which case the giver may be claiming a tax deduction.

    It would be a different matter if it was an income stream as it may be taxable but the actual tax payable would depend on the nature of the payment. For example, if you started to consistently receive large sums of money overseas from the same source, it may imply that a business deal is in place.

  98. Bob says:

    My daughter is only 15 and makes roughly $250 gross/fortnight. They still take about $50 out. Of course she can claim that back come tax time but it greatly decreases her take home pay. I would expect her employer to apply the tax free threshold (as there is no chance she would earn more than 18.200/ann ) and not withold any tax at all. Am I correct in thinking they either didn’t apply the form correctly or my girl didn’t tick the right box?
    Thanks so much. Most helpful.

  99. Jenna says:

    I’ve used several tax return calculators to estimate my tax return. I’ve earnt $69000 this year, and paid $14700 in tax. I have a HECS debt but I’m still unsure as to why the calculators are saying I have a $4000 tax debt payable this financial year?

  100. Tax Advisor says:

    Hi Jenna,

    Have you tried the E-Lodge tax calculator? We allow you to calculate your refund amount or tax due based on other factors such as dependents, income, offsets, etc. If you try ours and are still confused, feel free to contact us via email, phone or live chat and we would be more than happy to help you find your answers.

  101. cassandra says:

    Hi..I want to pay tax on the tax free threshold as a way of enforced I contact human resources where I work or the ATO..thankyou..

  102. Tax Advisor says:

    Hi Bob,

    You are correct in assuming that either your daughter did not tick the YES box for Question #8 or that her employer did not apply the tax free threshold claim. Either way, you or your daughter will need to bring this up with her employer and proceed in updating this form so that the tax-free threshold will be applied for her.

  103. Tax Advisor says:

    Hi Stephen,

    You should claim the tax-free threshold. Once you earn over $18,200, you will be responsible for paying tax on your income earned. This will automatically be applied although you should have an idea of approximately when you are going to hit that threshold amount.

  104. Tax Advisor says:

    Hi Cassandra,

    You should contact your human resources department prior to the ATO. Typically, they will be able to handle the update for you. You will only need to complete an updated document for them to submit.

  105. Kelly says:

    I know you can’t give me an accurate answer without all details, but if last year my gross was around $54000 and I usually get a annual return between $500-$900 and then this year my gross was just over $6000 and am expecting a return between $100-$200, what could have caused such a dramatic decline in return. All other details are the same (medical, banking) and I haven’t claimed any extras at all.

  106. Tax Advisor says:

    Hi Maria,

    When it comes to term deposits versus shares/bonds, a big difference is the interest rate. The interest rate on a term deposit will remain consistent for the length of time that you have it while the interest rate on bonds with increase and decrease often. You would still continue to report bonds and shares on your tax return.

    As far as your TFN goes, it will never expire. After a long period of time, it will automatically deactivate. You can simply contact the ATO to reactivate it with them. This phone call should not take more than 10 minutes.

  107. Ashleigh says:

    Hi there,

    I am currently receiving Centrelink (Youth Allowance) as well as a casual job. I received my payment summary for the 14/15 financial year and no tax was withheld from my Centrelink payments, does this mean I claimed the tax free threshold from them? If so, how do I change that, as I will be earning more money from my casual job.

  108. Giuseppe says:

    I make less than $300 p/w.
    Do I have to pay any tax? If I’m resident for tax and put tax free.

  109. Tax Advisor says:

    Hi Giuseppe,

    The tax-free threshold amount is $18,200. If you earn less than the tax-free threshold amount throughout the income year, you do not need to pay tax on that income. Keep in mind that you must apply to claim the tax-free threshold with your employer otherwise you will not be eligible and you could be taxed on the income you earn. Any income earned over $18,200 will be taxable income.

  110. Tax Advisor says:

    Hi Ashleigh,

    Something to keep in mind with Centrelink payments is that certain types are not taxable. You didn’t mention how old you are above but depending on your age, you may not be taxed on your Youth Allowance payments. Take a look at the Australian Government website page on taxing Centrelink payments. I think you will find this useful once you apply your specific situation to the information provided.

  111. Tax Advisor says:


    The decline of your gross income could be the reason ($54,000 to $6,000). Please advise if this was a typo. Assuming you meant $60,000 you may want to double check that you entered all information correctly with your tax preparer.

  112. Ella says:

    So I’m a full time university student. I’m 18years old. I have had a job for 3years. I have been offered to return to a Christmas casual position. I don’t want to quit my first job as I know the second job is just for the Christmas period. Do I have to pay tax on one of the jobs?

  113. Julie Neal says:

    I am an a pensioner. My income for last totalled 36555 and this year was 35081. Last year i receivd a refund due to franked dividends and this year etax says i have to pay 868. Have I done something wrong

  114. Tax Advisor says:

    Hi Ella,

    This will depend on the income amount you are earning from each place of employment. If both jobs earn you less than the tax-free threshold of $18,200 in total, than you will not be taxed on either income.

  115. Tax Advisor says:

    Hi Julie,

    Based on the information you have provided, I am really unable to verify why you not have an amount due as opposed to the refund you were issued last year. It could have easily been a mistake on Etax’s part. I do suggest taking a look at our tax calculator for the financial year if only to just compare the information you are entering and see if there is a great difference.

  116. Amelia woods says:

    Hi there, I’m currently working a casual job while at uni, but have a full time job that starts in January. Is it ok to claim the tax free theeshold from my casual job now, and then change it to my “2nd job” and claim the tax free threshold from my full time work next year?

  117. Tax Advisor says:

    Hi Amelia,

    Congratulations on the new upcoming position!

    You can do that as long as you do not reach the threshold amount while employed at your current position. Be sure that you make the necessary arrangements with both employers and complete the paperwork required.

  118. Bert grommen says:

    I am married and my wife is a Australian Citizen. I am a permanent resident living in Australia for 34 years. I have a few investment houses in Australia. We are getting about $32,000.00 a year from the rentals. Are we entitle to the tax-free threshold?

    Bert Grommen

  119. Hayden says:

    Hi I have started a new job recently and forgot to tick the tax free threshold. Am I able to change that so I am claiming it

  120. Tax Advisor says:

    Hi Hayden,

    Since you have just started the new job, speak with your employer about updating the Tax File Number declaration (or NAT 3092). On the declaration, just make sure to tick the YES box for question 8, “Do you want to claim the tax-free threshold from this payer?”

  121. Tax Advisor says:

    Hello Bert,

    The tax free threshold applies to your annual total income. When you claim the tax free threshold, the first $18,200 of your total income earned will not be taxed. Keep in mind that this threshold amount may be updated from year to year. You will be taxed on the income earned after that threshold amount is reached.

  122. Linda says:

    Hi, I am about to start 2 jobs, both are casual positions. One I will work 38hours a week and will pay tax. The second jobs is teaching at night and will make approx. $8,000 for the year. The second job will be under the tax free threshold, but combined with my day job, I will be taxed on that $8000 won’t I?

  123. Tax Advisor says:

    Hi Linda,

    You will not be taxed on income up to the tax-free threshold amount. Income earned in excess to that threshold is liable to be taxed.

  124. briggs sharlane says:

    HI there, I have been in australia working full time for eight months by time the financial year is up I would have been here ten months. The tax I have been paying is very high will I get most of it back

  125. Tyler Moey says:

    Hello i am an Australian citizen, Ive recently been traveling and im back in Australia for 4 months only and ill be making 20,000 for the work can i claim tax free for most of this?

  126. Tax Advisor says:

    Hi Briggs,

    I suggest checking out our tax calculator for the financial year. This will allow you to enter in your information to get an accurate idea of the amount you will get back for the year. It will also provide you with a breakdown of how we reached that amount. It’s completely free so you don’t need to create an account or even provide your name to use the tool.

  127. Maria says:

    Hi, got 2 questions.
    This financial year I’ve been a resident for 6 months. What would be my tax free threshold? I know there’s a calculation. Is it 18,200 % 2 = 9,100? Or is it more complex?
    the other question, When I filled my TFN declaration for my employer I put ‘yes’ on the tax free threshold claim. They have been witholding around 19% of my gross salary with every pay. My total income is barely above the threshold. Will I get a tax refund?

  128. Tax Advisor says:

    Hi Tyler,

    This will depend on whether or not you meet the ATO tests to be considered an Australian resident for tax purposes. Once you are certain of that, you will be able to refer directly to the ATO website page HERE. This will explain all up-to-date rules on claiming the tax-free threshold when you aren’t in the country for the entire year (with examples included).

  129. Tax Advisor says:

    Hi Maria,

    To answer your first question, I suggest checking out the ATO website page covering detailed information about claiming the tax-free threshold in your tax situation. This page provides examples for how you will calculate the amount.

    As for your second question, we have a free tax calculator on our website that will help you to calculate how much you will owe or get back.

  130. Tina says:

    Hi, Tax Advisor– awesome site!

    I need help figuring out why my tax deduction is so high.
    I’m on a part-time job working 40 hours per fortnight (or 20 hours a week) and I get paid an hourly rate of 22.77 AUD. Every payout I see on my slip that the tax deducted for the 40 hours I’ve worked is 230.00 AUD. Is this right? I’m an Australian Resident for Tax Purposes 🙂

    Looking forward to your very helpful response.

  131. Shae says:

    Hi, My 16 yo son has just started his second part time job. He is still a full time high school student also. He is currently claiming the tax free threshold from both employers. Is this correct, or should he change this with one employer?

  132. Tax Advisor says:

    Hi Shae,

    He can continue to claim the tax free threshold from both employers as long as his total income amount is less than that threshold amount. Otherwise, he should update to claim it from only one employer as it wouldn’t be in his best interest.

  133. Tax Advisor says:

    Hi Tina,

    Great to hear that you are enjoying our site!

    Based on what you have stated above, the amount being deducted does seem a bit high. This may have to do with some other factors in your tax situation. Take a look at the ATO Tax Withheld from Individuals Calculator. This will take into account some of those other factors that may be affecting your pay.

  134. Britt says:


    I started a new job last year august. Before then I have 3 jobs (2 part time and 1 casual) I no longer work at those 3 and only have my 1 full time job. Will i be expected to pay more tax to the government at tax time as earning over $60,000 (adding in the 3 jobs i no longer at) or will I get all that tax back as i have left those jobs? I just can’t afford to pay more at tax time I’m barely scraping it with my new job (as I’m earning $6000 less than what i was earning with 3 jobs).

  135. Alex says:

    Hi …

    My wife just started a casual job and they have deducted the PAYG withholding. Up to end of June 2017 she just earns ~$9000. Question is: Is she going to get back the PAYG withholding? Does she need to do tax return or this will happen automatically?


  136. Mary says:

    I was injured at work and has spent the entire year being paid by my insurance company under my income protection insurance. I received a PAYG payment summary that shows $ 16500 gross income with no tax withheld. Should I believe that, as no tax was withheld I do not need to lodge a tax return for this year.?

  137. Priscilla says:

    Hi there,

    After 5 months working in a restaurant I have just realised that I made a mistake when I filled my Tax file number declaration. I put NO instead of YES to the question: Do you want to claim the tax-free threshold from this payer.
    Is it too late to change?
    Also, the restaurant will close in two weeks so I will have to fill a new tax file number declaration with a new employer very soon.
    What can I do?

  138. Emily says:

    I did my pay slip wrong and my boss told me to do tax return. So I tried to do it online but it says there’s no tax return found. What should I do? I don’t even need to pay tax.

  139. Tax Advisor says:

    She will need to file a tax return to receive the withholding.

  140. Paul says:

    Hi …

    From 1982-2003 I worked full time as a High School teacher and my tax free threshold was on this income.

    From 1990 – 2017 I taught casually for TAFE and paid full income tax on this income.

    From 2003-2017 my sole income has been with TAFE. During this time i never amended my tax free threshold to reflect that my TAFE INCOME had become my sole source of income.

    I have not lodged a tax return since 1995.

    When I lodge my outstanding returns and pay any fines for such … will I be able to retrospectively amend the tax free threshold to reflect the fact that since 2003 I have been paying too much tax????

  141. charlie says:


    i just started a new job and my first payslip for working two days came up as $251.28, but in my payslip the “current” and YTD show the same and it shows that i am not being taxed, i called the company and asked why i am not being taxed on this payslip and their reply was that because i made less than $350 on this pay(weekly) i do not have to pay tax? are they right?

  142. Tax Advisor says:

    This is correct, since you are within the tax fee threshold.

  143. Tax Advisor says:

    Hello Priscilla,

    You may contact your Payroll Department to get more details on this issue.

  144. Tax Advisor says:

    According to the ATO, if you made under $18,200 dollars, you will not need to lodge a return. It is only when your taxable income exceeds the tax-free threshold that you will need to lodge a tax return.

  145. Tax Advisor says:

    Every return takes into calculation your total income, deducting your tax-free threshold amount with it to determine your taxable income. The purpose of the tax-free threshold is so that you can use as much of your income that you have earned throughout the year, during the year. Otherwise you would be receiving your return for what you overpaid for during the years you did not claim the threshold.

  146. luke says:

    So I earned 11200 from one of my jobs with 556 tax deducted and 9800 from another job with 1500 tax deducted within the financial year. i was wondering whether i get any tax return?


  147. Tax Advisor says:

    If you are an Australian Resident, it is very likely that you will be getting a return, as the first $18,200 dollars that you have earned for this recent tax season is tax-free. You can see the breakdown of your tax return through our website, without having to make a payment for it until you are ready to lodge.

  148. Maria says:

    Is it worth including tax deductions, if my total income is under the low income threshold? I was taxed at over 30% when I received a lump sum on leaving my previous job, but haven’t earned much income since thence I’ve recently re-entered the work force very part-time. I have possible deductions but wonder if they equate to anything?

  149. Tax Advisor says:

    Hello Maria,

    Adding deductions should benefit you and you can find out by entering these figures into our application to determine if they make a difference. This would be the only way to determine if the deductions equate to anything.

  150. Michelle says:

    Hi, my daughter is turning 15 soon and starting her first part-time job. She wont earn anywhere near the tax free threshold so I want to know whether we actually need to get her a tfn at all? Can we just fill in the tax file number declaration form “I am claiming an exemption because I am under 18 years of age and do not earn enough to pay tax” ?

    Also do you know if the employer needs to pay super ? and if so do I need to get her a TFN for that ?

  151. Josh says:

    I made just over 40k this financial year and paid around 7k in tax. My notice of assessment is telling me I now have a 6k debt. Did I do something wrong somewhere ?

  152. Tax Advisor says:

    Hello Josh,
    Review your notice of assessment. If you think anything is incorrect, contact the ATO.

  153. Tax Advisor says:

    For your daughter, claiming the tax-free threshold may be in her best interest if she will not be earning more than the threshold for the financial year. You may have to file if any of the income is withheld when you receive your group certificates.

    For the superannuation, your employer must withhold income if you are 18 years of age or over, with $450 or more before taxes in a calendar month. This is also applicable if you are under 18 years old and being paid $450 or more before tax in a calendar month and work more than 30 hours in a week.

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