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Moving from PAYG to Centrelink

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Newbie

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I will be working PAYG until end of December this year then moving onto 100% Centrelink afterwards. The Ausstudy I get after this period will that go into tax free threshold or will it be combined with my already earnt taxable income from my current role? Trying to keep total income under 37k for tax reasons
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Former Community Support

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Hi @lachlanb20,

 

Welcome to our Community!

 

If you're an Australian resident for tax purposes you're entitled to the tax-free threshold which means the first $18,200 of your total yearly income isn't taxed.

 

Your Austudy payments will be combined with your PAYG income in your tax return at the end of the financial year. If you've had tax withheld from your payments but don't earn more than $18,200 for the year, you'll receive your tax back as a refund.

 

If you earn more than $18,201 but less than $37,000 you'll need to pay 19c for each $1 over $18,200 up to $37,000.

 

Hope this helps,
JodieH. 

1 REPLY 1

Most helpful response

Former Community Support

Replies 0

Hi @lachlanb20,

 

Welcome to our Community!

 

If you're an Australian resident for tax purposes you're entitled to the tax-free threshold which means the first $18,200 of your total yearly income isn't taxed.

 

Your Austudy payments will be combined with your PAYG income in your tax return at the end of the financial year. If you've had tax withheld from your payments but don't earn more than $18,200 for the year, you'll receive your tax back as a refund.

 

If you earn more than $18,201 but less than $37,000 you'll need to pay 19c for each $1 over $18,200 up to $37,000.

 

Hope this helps,
JodieH.