A lot of people pay unwanted taxes every year. This is because they do not understand the Australian tax system. You need to understand the Australian tax system to avoid paying unwanted taxes, such as the tax-free threshold. It is even better to hire a registered tax agent in Perth to help you lodge your tax return.
What is a Tax-Free Threshold?
It is the amount of money you can earn every fiscal year without paying any tax on it. You will not have to pay any tax on the tax-free threshold. The Australian Taxation Office (ATO) sets the tax-free threshold as $18,200. Therefore, the first $18,200 of Australian residents is tax-free.
What is Included in the Income list?
- Foreign income
- Business partnership and trust income
- Investment income, such as rent, dividends, interest and capital gain tax
- Government payments and allowances
- Employment income
You must also declare the earning or money you receive from personal services income, the sharing economy and tax, and crowdfunding.
How Can I Claim Tax-Free Threshold?
It is easy to claim the tax-free threshold. Once you begin a new job, you will fill out a tax file number declaration. You will just need to answer ‘yes’ to this question; ‘Do you want to claim the tax-free threshold from this payer?’ When you start a new job, you can claim the tax-free threshold on your tax file number declaration form.
What Happens If I Don’t Claim the Tax-Free Threshold?
If you decide not to claim the tax-free threshold, you will have to pay tax on your earnings, even if you earned under $18,200. You can even decide not to claim the tax-free threshold to help you save money since some Australians use this strategy.
Contact Perth Mobile Tax to Get a Customised Solution
It is much better to hire a registered tax agent to make sure you do not pay unwanted taxes. If you are looking to hire a tax accountant or tax agent in Perth, Western Australia, then contact Perth Mobile Tax.
Related Posts:
– Tips for Getting Ready for Your Tax Return
– What All You Can Claim on Your Tax Return?
