How much can be earned without having to pay tax?
For the 2018 to 2019 tax year the tax free threshold for resident taxpayer individuals is $18,200 per year in taxable income. That means earning under this amount results in no income tax payable.
However, a taxpayer could earn slightly more than this and pay no tax because of 2 rebates that are available:
- The Low Income Tax Offset of $445, and
- The Low Mid Income Tax Offset of $255.
This means that an individual resident individual could actually earn $21,885 per year and not have to pay tax.
However, if the individual is eligible for the Seniors and Pensioners Tax Offset (SAPTO) they could potentially earn up to $33,000 per year and not have to pay tax.