All Australian employees have been asked this question on their Tax File Number Declaration form.
And it stumps many. We are often asked "Do I write no?" This is one of the most common questions asked to the Payroll office.
If you're an Australian resident for tax purposes, for a full year you pay no tax on the first $18,200 of your income. This is called the tax-free threshold. If you earn under the tax free threshold, you will not pay tax on that income.
When should you tick yes?
Whether you answer yes or no the tax-free threshold on your withholding declaration depends on your individual circumstances. If you are only going to be receiving one taxable income from a single employer, then you will select “Yes”.
What if you have more than one job?
This is when you decide on which employer's form you select yes and which is no. If you select yes to both employers, you will likely receive a tax bill when completing your tax return, this is because not enough tax has been charged against you.
If you have two jobs and receiving a taxable income from both, you would select the highest paying job as your tax free threshold payer.
Only one employer and want to select "No"?
Some do this for forced savings. Any tax withheld above the determined amount of tax payable when you complete your tax return, will be refunded to you.
For further information, visit the ATO website.
Commentaires