What is the tax free threshold in Australia?
The tax-free threshold depends on your circumstances: Ordinary tax-payers – $6,000 Children’s investments* – $416 Non Residents – $Nil You also need to take into account the low income tax off-set, which is $600. This means the effective tax-free income is: Ordinary tax-payers – $10,000 Children’s investments* – $1,333 Non Residents – $2,069 There are other tax off-sets and tax deductions that can affect the amount that can be earned before tax is paid. * The higher rate on children’s investment income was introduced to prevent parents placing investments in the children’s names in order to avoid paying tax on the income. Children’s income from employment is taxed at normal rates.
