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Re: Only worked 5 months - Can I claim Tax Free Threshold for full year?

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Newbie

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Replies 2

Arrived from abroad and started work in Feb. I believe I can claim the Tax Free Threshhold for the full year but don't know how to do that.

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Most helpful response

Community Support

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Hi @Samdec,

 

Thanks for getting in touch.

 

If you moved to Australia with the intention of residing here then you are able to claim the tax free threshold for the time you were in Australia.

 

When you go to lodge your tax return and you reach the Personalise your return page you need to select no to the question "were you an Australian resident for tax purposes from 1 July 2019 to 30 June 2020"

And then you will be asked the question "If you were a resident for part of the year, only enter the dates when you were a resident (otherwise leave blank)." input the dates that you were in Australia as a tax resident so from February through to 30 June 2020.

 

When you do this it will calculate the amount of tax free threshold you are eligible to receive. As your adjusted tax free threshold is made up of two parts:

  • a flat amount of $13,464
  • an additional $4,736 – apportioned for the number of months you were in Australia during the income year, including the month you arrived.

So yours would be approximately:

= $13,464 + (($4,736 × 5) ÷ 12)

= $13,464 + $1,973

= $15,437

 

Hope this helps,

 

JacquelineATO

2 REPLIES 2
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Taxicorn

Replies 0

@Samdec 

 

When did you arrive and become an Australian Resident for tax purposes?

 

You can claim it on your tax file declaration but when you come to lodge a tax return it will be adjusted to the number of months that you were here.

 

 

 

Highlighted

Most helpful response

Community Support

Replies 0

Hi @Samdec,

 

Thanks for getting in touch.

 

If you moved to Australia with the intention of residing here then you are able to claim the tax free threshold for the time you were in Australia.

 

When you go to lodge your tax return and you reach the Personalise your return page you need to select no to the question "were you an Australian resident for tax purposes from 1 July 2019 to 30 June 2020"

And then you will be asked the question "If you were a resident for part of the year, only enter the dates when you were a resident (otherwise leave blank)." input the dates that you were in Australia as a tax resident so from February through to 30 June 2020.

 

When you do this it will calculate the amount of tax free threshold you are eligible to receive. As your adjusted tax free threshold is made up of two parts:

  • a flat amount of $13,464
  • an additional $4,736 – apportioned for the number of months you were in Australia during the income year, including the month you arrived.

So yours would be approximately:

= $13,464 + (($4,736 × 5) ÷ 12)

= $13,464 + $1,973

= $15,437

 

Hope this helps,

 

JacquelineATO