How to claim the tax-free threshold
If you are an Australian resident for tax purposes, the first $18,200 of your yearly income is not taxed. This is called the tax-free threshold. When you start a job, your employer will give you a Tax File Number declaration (NAT 3092) to complete.
To claim the tax-free threshold, you need to place an “X” in the Yes box of question 8 'Do you want to claim the tax-free threshold from this payer?’
You have 28 days to give your employer a completed Tax File Number declaration form or to claim an exemption from quoting a TFN.
After that time, your employer must start deducting tax from your pay at a rate of 46.5%. If you don’t have, or have forgotten your TFN, you can indicate on the Tax File Number declaration that you are making an application or enquiry to get your TFN. This will mean your employer will tax you at the normal rates for 28 days.
What if you have more than one employer?
If you have more than one employer at the same time, we generally require that you only claim the tax-free threshold from the employer who pays the highest salary or wage (this is known as the primary source of income).
If you earn additional income (for example, from a second job or a taxable pension), your second employer is required to withhold tax at the higher 'no tax-free threshold' rate. If your second employer does not withhold a higher rate of tax, this may lead to a tax debt at the end of the financial year.
If you are certain your total income for the year will be less than $18,200 you can claim the tax-free threshold from each source of income.
How do I know if I am 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 you have come to Australia and now live here permanently
- are an overseas student doing a course that takes more than six months to complete
- migrate to Australia and intend to reside here permanently.
If you go overseas temporarily and don’t set up a permanent home in another country, you may continue to be treated as an Australian resident for tax purposes. If you are in Australia on a working holiday visa (subclass 417) or a work and holiday visa (subclass 462) you must place an X in the working holiday maker box. Special rates of tax apply for working holiday makers.
Payment summaries / Group certificates
Commencing from the 2018-19 financial year, Morgan McKinley is no longer obliged to give you an end of year payment summary.
Your payment summary information will be available in myGov at the end of the financial year, therefore your must register for a myGov account in order to receive it. Your payment summary information will be called an income statement in myGov.
The ATO will send a notification to your myGov inbox when your income statement is ‘tax ready’ so you or your tax agent can complete your tax return.
For any copies of income statements, you should contact the ATO directly.
If you are querying your tax rate, please refer to the ATO website or follow up with a tax professional.
I have worked with Morgan McKinley over the last two years, both as the Group Executive, Strategy and Technology at Qantas and now as CEO, Jetstar Group. Over this time Morgan McKinley has consistently provided us with very high quality candidates from the top tier consulting firms for senior level strategy vacancies. They have successfully sourced talent from local and international markets for "Head Of" level roles. I would highly recommend Morgan McKiley to any business looking for the best candidates in the market for their strategy teams.Read More
Leading Travel Company
In terms of the role Morgan McKinley have just placed, I was very impressed with the service provided and the candidates submitted. The Hiring Manager and the Head of Supply Chain have also given feedback that they were impressed with the shortlist you sent through. Great work!Read More
Leading FMCG Company
Morgan McKinley is one of a few agencies that I have consistently received high quality candidates from, particularly in the Business Analyst space. They actively engage with the brief and are not afraid to ask clarifying questions, leading to a better resultRead More
Leading insurance Company
The candidates provided by Morgan McKinley for positions within IT and Business Transformation are always excellence. In addition to finding candidates who are technical extremely competent, including looking outside Australia for the relatively scarce competency that I need. Jonty has taken the time to get to know both myself and the organisation I work for. He has grasped our culture and only sends candidates who will be a good fit. This considerably reduces the cycle time to fill placements, and reduces the effort required on my part to do so.Read More
Leading Telecommunications Company
Strong execution and change management is in real demand by our business right now and as a result, we want to partner with people who understand the space and, in turn, attracts the right talent. Morgan McKinley has been an excellent partner in this regard. They have a sound appreciation of these capabilities, are thorough in their approach with us and potential candidates and ensure that we are put in front of the right people at the right time.Read More
Business Services Cooperation