The Tax-Free Threshold & You

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Did you know that regardless of how many jobs you worked over the past year, once your income reaches $18,200, it has crossed the tax-free threshold?

The tax-free threshold is the maximum amount of income you can earn in a year without paying any tax.  Currently, that limit is set to $18,200.

Did you also know that payments from the government could also be counted as taxable income, which contributes to your tax-free threshold?

Like many Australians, you may have found the previous year challenging as the cost-of-living crisis continues and may have required supplemental incomes (such as payments from Centrelink, government support or disaster relief).

Those payments may have pushed you over the $18,200 threshold without realising. This will create an issue, mainly if you failed to elect to have tax withheld from the payments.

This could impact the amount of money you might otherwise receive from your tax return claim, pushing you into a different income bracket for your return.

Centrelink, disaster relief, and government support packages may be taxable income. On top of what you may have earned during employment, the ATO will consider this when calculating your tax return claim. Ensure you report all income earned or consult your tax adviser to provide the best outcome for your tax return.

Want to get the most out of your tax return for this upcoming financial year? Speak with us so we can advise you on any deductions you may try to claim, your taxable income and any other queries you might have that we could help with this coming end of the financial year.

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