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Re: Tax Free Threshold for Casual Employee

Initiate

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Replies 3

Hi,
I have an employee who would like to claim the tax free threshold when working for us.
He works away (Fifo) on a casual basis for a few weeks at a time and when he returns, he works for us on a casual basis for a few weeks at a time.

His main employment is his Fifo work.

When at home, and working for us, he does not receive any employment income from his Fifo job.

When he is is away (Fifo), he does not receive any employment income from us.
Is it okay for him to claim the tax free threshold on both jobs as he is never receiving income from both employers at the same time?

Many thanks for any advice

 

1 ACCEPTED SOLUTION

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Most helpful response

Taxicorn

Replies 2

@elsie 

 

The tax-free threshold is used against total taxable income, not per job.

 

The only way that you could have it for more than 1 job and not suffer any tax payable is if both jobs total taxable income is below the tax-free threshold.

 

3 REPLIES 3

Most helpful response

Taxicorn

Replies 2

@elsie 

 

The tax-free threshold is used against total taxable income, not per job.

 

The only way that you could have it for more than 1 job and not suffer any tax payable is if both jobs total taxable income is below the tax-free threshold.

 

Initiate

Replies 1

Thanks for your reply.

Devotee Registered Tax Practitioner

Replies 0

@elsie @macfanboy 

 

Elsie,

 

I agree with macfanboy.

 

Lets say someone earns $80,000 a year and $20,000 a year casually equally over a year.

 

If the exception was claimed from both employers then there is a potential tax bill of over $6000.

 

The employee may be claiming a personal super deduction for say $15,000 and/or have other deductions/rental losses etc.

In that case, the tax bill of some $6000 may not exist.

 

Most people in my view, prefer not to have a $6000 bill on lodging their tax return.

 

Duncan