Tax Information

How to claim the tax-free threshold

If you are an Australian resident for tax purposes, the first $18,200 of your yearly income is not taxed. This is called the tax-free threshold. When you start a job, your employer will give you a Tax File Number declaration (NAT 3092) to complete.

To claim the tax-free threshold, you need to place an “X” in the Yes box of question 8 'Do you want to claim the tax-free threshold from this payer?’
You have 28 days to give your employer a completed Tax File Number declaration form or to claim an exemption from quoting a TFN.

After that time, your employer must start deducting tax from your pay at a rate of 46.5%. If you don’t have, or have forgotten your TFN, you can indicate on the Tax File Number declaration that you are making an application or enquiry to get your TFN. This will mean your employer will tax you at the normal rates for 28 days.

What if you have more than one employer?

If you have more than one employer at the same time, we generally require that you only claim the tax-free threshold from the employer who pays the highest salary or wage (this is known as the primary source of income).

If you earn additional income (for example, from a second job or a taxable pension), your second employer is required to withhold tax at the higher 'no tax-free threshold' rate. If your second employer does not withhold a higher rate of tax, this may lead to a tax debt at the end of the financial year.

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 source of income.