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_jfc50832(I'm new)I'm new
8 June 2021

I arrived in Australia on a working visa last year in August. I will be filing my returns for the first time.

Income tax is deducted from my salary by my employer.

A friend informed me that there is a provision where first time eligible filers can claim back their whole tax paid.

I believe that the amount is $18200 that you are exempted as per my reseach on the internet. In this regard, my question is:

- for the financial year (july - june), if my total income is $80,000 then since it is my first time, is tax payable on the full income or do I deduct $18200 and tax is payable on the balance amount?

- or do you only get a return if the total taxable income for the financial year is upto $18200?

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Most helpful replyATO Certified Response

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

All replies

Most helpful replyATO Certified Response

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

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