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Tax Free Threshold

Newbie

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Replies 1

Can I claim the tax free threshold on my new job if I am already in a business partnership?

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Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

Hi @Pleasehelp2,

 

You can claim the tax-free threshold at one place of employment. This means if you're not employed elsewhere, you can claim the tax-free threshold at your new job.

 

However, keep in mind that in a partnership, your income tax is not paid before you receive your distributions. If you're not already registered for PAYG instalments, you may want to consider registering. This makes sure you can cover your income tax in more manageable chunks, rather than one big chunk at the end of the year.

 

Alternatively, you may want to choose to not claim the tax-free threshold at your place of employment, even if you can. This will help cover your total tax obligation come the time you lodge (if you choose to not register for PAYG instalments).

 

You can read about claiming the tax-free threshold and PAYG instalments on our website.

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @Pleasehelp2,

 

You can claim the tax-free threshold at one place of employment. This means if you're not employed elsewhere, you can claim the tax-free threshold at your new job.

 

However, keep in mind that in a partnership, your income tax is not paid before you receive your distributions. If you're not already registered for PAYG instalments, you may want to consider registering. This makes sure you can cover your income tax in more manageable chunks, rather than one big chunk at the end of the year.

 

Alternatively, you may want to choose to not claim the tax-free threshold at your place of employment, even if you can. This will help cover your total tax obligation come the time you lodge (if you choose to not register for PAYG instalments).

 

You can read about claiming the tax-free threshold and PAYG instalments on our website.