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.

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