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Worried you’re missing part of your refund? Remember, the low and middle income tax offset isn’t a refund on its own – it’s used to offset (or reduce) the amount of tax you pay. The offset amount you may be entitled to is automatically applied and could range between $255-$1080, depending on things like your taxable income and how much tax you’ve paid.
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Re: Tax free threshold

Newbie

Views 229

Replies 1

If I do not claim the tax free threshold and I only have one job, will I claim the tax back at return time or am I better off claiming the tax free threshold? 

1 ACCEPTED SOLUTION

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Most helpful response

Former Community Support

Replies 0

Hi @Rosethorn123 

Thanks so much for your question. It is entirely your decision whether you claim the tax free threshold or not. If you choose to claim this with your employment then you will have less tax withheld each pay cycle as you won't be taxed on the first $18,200. However if you choose not to claim the tax free threshold you will be taxed from the first dollar you earn, meaning you may be entitled to a larger refund when you do your tax return. This is because you would have paid too much tax depending on your other circumstances.

 

Thank you for contacting us and have a nice day!

1 REPLY 1

Most helpful response

Former Community Support

Replies 0

Hi @Rosethorn123 

Thanks so much for your question. It is entirely your decision whether you claim the tax free threshold or not. If you choose to claim this with your employment then you will have less tax withheld each pay cycle as you won't be taxed on the first $18,200. However if you choose not to claim the tax free threshold you will be taxed from the first dollar you earn, meaning you may be entitled to a larger refund when you do your tax return. This is because you would have paid too much tax depending on your other circumstances.

 

Thank you for contacting us and have a nice day!