Tax Free Thresholds – 2009

The Tax Free Threshold, thats the first $6,000 earnt that you don’t pay tax on… right?

Wrong…. ???

There are many tax free thresholds, your situation governs the amount of threshold you receive.

  • Non-Residents, their threshold is nil, they pay tax on $1
  • Minors, people under 18 who have unearned income their threshold is $2,667. Unearned income is, bank interest, share dividends, trust distributions and is not salary or wages.
  • Low income earners, under 55 who receive the low income tax offset of $1,200 can earn $14k before tax is paid.
  • Low income earners, over 55 and working who receive the low income tax offset of $1,200 and the mature age worker tax offset of $500 can earn $17333 before tax is paid.
  • If you receive the Australian Government Pension your threshold are;
    • single person $25,299
    • married but had to live apart due to illness $24,272
    • married person $21,692
  • If you did not receive the Australian Government Pension and eligible to receive the Senior Australians Tax Offset your threshold are;
    • single person $28,867
    • married but had to live apart due to illness $27,600
    • married person $24,680

These thresholds cover most cases, but there are others, recipients of centrelink payments can receive more than $6000 threshold.

As you can see, the older you are, the more you can earn before paying tax, a plus for the retiries.