Hey all I’m just a bit confused as to how this tax free threshold thing works. I’ve just gotten a job and had to complete a TFN declaration sheet and one of the questions asked if I wanted to claim tax from this payer. I clicked no because apparently if you’re receiving youth allowance then that counts as another payer. Was I correct to tick no or should I have ticked yes?
Tax Free Threshold
Leggsalad on 31/05/2018 - 23:56
Comments
You always say yes to your highest paying job, and no to side jobs, you should not consider an allowance as a primary income, as it can be changed based on your employment income.
Just switch it to a yes later on once your youth allowance stops. in the mean time you will be taxed more upfront but the end of tax year is 1 month away so i wouldn't worry.
don't stress anything can be changed at any time down the track. you haven't signed up to pay "extra" tax for ever
From memory you just need to talk to your payroll and request they change the tax declaration to a yes. No harm, no foul.
You can notify your company payroll and complete the form again.
It just tells them which ATO table to base your withholding tax from. If you do claim the tax free threshold, they'll withhold less and vice versa.
If they withhold too much, you'll get it back again you complete your tax return. If they withhold too little, then you'll end up with a tax bill for the difference.
Shouldve ticked yes as your allowance should be a pre-tax value. You aint claiming any tax on your allowance but your work income is after tax which you will claim.