Tax-free threshold
The first $18,200 of income you can earn tax-free.
The tax-free threshold is the amount you can earn each year before any income tax applies — $18,200 in Australia. You claim it from one employer so that first slice of income isn’t taxed. Earn under the threshold overall and you generally pay no income tax.
Try the income tax →Grounded in ATO guidance. General information, not tax advice.
Related terms
Marginal tax rate
The tax rate on your next dollar of income.
Medicare levy
A 2% levy on most taxable income that funds public health.
CGT discount (50%)
Hold an asset over 12 months and only half the gain is taxed.
Franking credits
A credit for company tax already paid on your dividends.
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