The first $18,200 of your income won’t be taxed if you’re claiming the tax free threshold on your 2014 tax return.
As of 1 July 2012, the Australian tax-free threshold increased to $18,200. That means, if you still need to file your 2012-2013 taxes, you might be surprised to see a refund waiting to be claimed.
You’ll also have peace at mind knowing the tax-free threshold remains at $18,200 this year.
In other words, if you’re an Australian resident for tax purposes, you’ll notice when lodging your 2014 tax return that the first $18,200 of your income is not taxed.
The Tax Free Threshold Remains The Same
In 2011-2012, the tax free threshold was $6,000. Thanks to the Clean Energy Future package, that threshold increased to $18,200, starting in the 2012-2013 tax years.
That means, just like last year, if you are an Australian resident for tax purposes, you’ll only pay taxes on your taxable income exceeding $18,200. The higher your income, the higher the tax rate.
Last year, the ATO reported that the $18,200 tax free threshold for PAYG (pay as you go) withholding purposes would be equivalent to you making;