If a student over the age of 21 has only income from a bank account will he be taxed the same as a working person working part-time or full-time? I know it is different if his age is under 18 but would like to confirm the first $18,200 is not taxed for a person aged over 21. Thanks.
Income tax rate for students over age of 21
ubor on 25/11/2013 - 20:27
Comments
Make sure your bank has your tax file number or they may still withhold the tax and you would need to claim it back on your tax return.
There is no difference in tax rates based on age…only if you are a resident or not…if you are a resident you get the tax-free threshold…otherwise…lots and lots of tax.
also…you only get to claim the tax-free threshold on your first job…not your second…even if you don't earn less than $18,200 across both jobs…there's a declaration on the TFN form you sign with your employers. If you don't supply your TFN to the bank, they will take out withholding tax - which is pretty much max tax rate and then you can claim it back at the end of the year.
You are now allowed to have more than one tax free threshold tax declarations as long as
your total estimated income for the year is below $18200.There is no difference in tax rates based on age
This is not correct, there are special rules for the income of minors ie under 18's ATO
The rule is for under 18's only.
So in this case a 21yo will be taxed the same as a working person.
Yes income under $18,200 is tax free as far as ATO is concerned