Tax free treshold

[#1]

Hello! I just learned about tax free threshold now. I have two jobs and last year, I paid too much tax that I even had a big amount of debt to pay to ATO. I want to amend my tax return, is it too late to claim the tax free treshold? Please advise me what to do and how to do it. Thank you very much. 

[#2 · Accepted solution]

The tax free threshold is automatically applied when you lodge your tax return regardless of whether you had claimed it from your employer

[#3]

Oh I didnt know that. Thank you very much. So 11,000$ tax of 62,000 total income from two jobs is right? 

[#4]

Hi @Leaanne

You can use our Income tax estimator on our website to check estimate of tax payable.

Also, if you wanted to start claiming the tax free threshold you can provide your employer with a withholding declaration. I recommend reading the information we have on our website for if you have more than one payer first.

Please follow the links for more information -

Income tax estimator

Withholding declaration

More than one payer

Ari

[#5]

Hi Ari! Thank you for your response. So I just want to know clearly, tax free treshold is automatically deducted whether you apply or not or not really? If its automatically deducted, why did I have to pay 11,000$ tax of my total combined income of 62,000$. Shouldnt it be lower than that if They deducted my tax free treshold? Thanks 

[#6]

Hi @Leanne,

With tax-free threshold, tax payable on $62,000 would be around $11,900 (assuming there are 52 weeks worth of pay - not always the case), but if we hadn't applied the tax-free threshold (for example, if you were a non-resident for tax purposes) you would have $18,200 tax payable on $62,000. 

I used the Excel tool linked at the top of the webpage below to work this out, and multiplied the figures by 52. It gives you two figures - one with and one without the tax-free threshold applied.

Weekly tax table