Paying tax
When you start a new job, you need to complete a Tax File Number (TFN) Declaration form and give this to your employer. It enables your employer to calculate how much tax needs to be deducted from your pay. The employer is responsible for passing on your deducted tax to the Australian Taxation Office (ATO). If you do not complete the TFN Declaration form, you will be taxed at the highest marginal rate (currently 48.5%).
Information that you need to declare on your TFN Declaration form:
- Your Tax File Number
- Any HECS, PELS or SFSS (Student Financial Supplement Scheme) debts
If you do not have a TFN, have lost it or are not sure what your number is, you will need to complete a separate form called a Tax File Number Application or Enquiry for an Individual which is available from the ATO.
Tax-free threshold
You can elect to claim the tax-free threshold, which means that you do not pay tax on the first $6000 of earnings each year. If you are receiving Youth Allowance or Austudy, then you cannot claim the tax-free threshold for a part-time job, as the tax-free threshold is already taken into account for those payments. If you have two or more jobs, then you can only claim the tax-free threshold on one job only.
If you are not an Australian resident, you are not eligible to claim the tax-free threshold. However, international students who are studying in Australia for more than six months are considered to be residents for taxation purposes. This means that the tax-free threshold can be claimed.
Completing a tax return
You need to lodge a tax return if you earn more than $6000 in the financial year (1 July to 30 June). If your income was less than $6000 but you had tax deducted from your earnings, then you will need to lodge a tax return to get a tax refund.
The Australian Taxation Office (ATO) runs a tax help program each year. If you need to use the tax help program, call the ATO on 13 2861 to find where your closest Tax help office is.
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