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  • How much income tax you pay

    The amount of income tax and the tax rate you pay depends on how much you earn. The more you earn, the higher your rate of tax.

    If you're an Australian resident, the first $18,200 you earn is tax-free. This is called the tax-free threshold. If you are a foreign resident, you pay tax from the first dollar of taxable income.

    Claiming the tax-free threshold

    You will get the benefit of the $18,200 tax-free threshold by filling in a 'Tax file number declaration' when you start work or start receiving payments from a government agency such as Centrelink.

    Individual income tax rates

    Tables which show the amount of tax payable in every dollar for each income bracket for individual taxpayers.

    The difference residency makes

    Australian residents are generally taxed on their worldwide income from all sources (but for temporary residents most foreign income is exempt). Foreign residents are generally taxed only on their Australian-sourced income, such as money they earn working in Australia. The tax rates for Australian residents are generally lower than for foreign residents.

    Are you an Australian resident for tax purposes?

    Generally, we consider you to be an Australian resident for tax purposes if you have always lived in Australia or have come to Australia to live. Also if have been in Australia for more than half of the income year (unless your usual home is overseas and you don't intend to live in Australia - for example, you are a working holidaymaker), or are an overseas student enrolled in a course of study of more than six months duration.

  • Last modified: 30 Jun 2014QC 31930