Most helpful replyATO Certified Response
Author: RachATO(Community Support)Community Support ATO Certified Response9 June 2021
Hi @jfc50832,
The entitlement to claim the tax-free threshold depends on your Australian tax residency status, as it's only available to Australian tax residents. If you're considered a foreign or non-tax resident, then unfortunately you aren't able to claim the tax-free threshold. So, you'd first need to work this out. As tax residency is self-assessed, we aren't able to determine this for you, but the residency tools are available on our website to help you with it.
Not to confuse the situation, but the tax-free threshold can differ as follows:
Individuals who identify as Australian tax residents for the entire year can claim the maximum tax-free threshold of $18,200.
Individuals who are tax residents for only par of the year have a tax-free threshold of at least $13,464, with the remaining $4,736 pro-rated depending on how many months they are a resident.
Using the full year tax residents as an example, individuals who earn less than $18,200 for the financial year do not pay tax on their income. Individuals who earn over $18,200 won't pay tax on the first $18,200, however tax will be applied to the rest of their income.
So in regards to your questions, if you meet the eligibility through being an Australian tax resident, then tax would be payable on any amount you earn beyond the initial $18,200.
Let us know if you need any more help :)
RachATO