Tax-free threshold¶

Definition. The tax-free threshold is the part of an Australian resident's yearly income on which no tax is withheld (the first $18,200 of income); an employee can usually claim it from one employer, their main job, on their TFN declaration.

In plain English¶

Most Australian residents pay no tax on the first $18,200 they earn in a year. An employee tells one employer, usually their main job, to apply this on their TFN declaration, which lowers the tax taken from their pay.

Related lessons¶

• The tax-free threshold

General information only — not tax, super or financial advice.