The Pulse

Hi All,

With the recent May 2012 Federal Budget, the government announced that the tax free threshold for Australian residents will increase from 1^st July 2012 to $18,200. This should see a nice saving of tax for low income earners.

What you may not realise, is if you are “certain” your income from 2 or more jobs in total will not exceed $18,200 for the financial year, you can claim the tax free threshold on each job. Previously you were only allowed to claim the tax free threshold on your main job.

Not only will low income earners receive more in their pay each week, it means they potentially do not have to lodge an income tax return (I suggest double checking with your accountant before deciding not to lodge an income tax return).

Don’t take my word for it, check out the ATO page below, updated on 31^st July 2012.

http://www.ato.gov.au/content/23070.htm

Have a great day.

Richard Puffe | Product Manager, LiveAccounts | MYOB