Tax-Free Threshold Explained

What the $18,200 tax-free threshold means in Australia, when to claim it, and what happens if you have multiple employers.

Key Points

• Amount: The first $18,200 of income each financial year is tax-free.
• Claiming: You claim it on your Tax File Number Declaration (TFN form) with your employer.
• Multiple jobs: Only claim it with one employer to avoid an underpayment at tax time.
• Not claiming: If you don't claim it, tax is withheld from the first dollar at the no-threshold rate.