To complete your Tax File Number (TFN) Declaration, you are required to answer the following questions on your uPaged profile so your payer (i.e. your employer) can work out how much tax to withhold from payments they make to you:
- Enter your Tax File Number (9 digits)
- Do you want to claim the tax-free threshold from this payer?
- Do you have a Higher Education Loan Program (HELP), VET Student Loan (VSL), Financial Supplement (FS), Student Start-up Loan (SSL) or Trade Support Loan (TSL) debt?
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What is the Tax-free Threshold?
The tax-free threshold is the point to which if exceeded, your yearly income becomes taxable. It is $18,200. This means if you are an Australian resident for tax purposes, the first $18,200 of your yearly income isn't taxed and any excess thereafter (that is, taxable income that exceeds the tax-free threshold), is taxed.
What does it mean to claim it from this payer?
To claim the tax-free threshold from this payer means you would like to reduce the amount of tax that is withheld from your pay during the year.
If you have more than one payer at the same time (for example, have two or more jobs), the ATO generally requires that you only claim the tax-free threshold from the payer who usually pays the highest salary or wage.
This means that your other payers are required to withhold tax from your income at a higher rate, and reduces the likelihood of you having a tax debt at the end of the financial year.
If you would like to claim the tax free threshold from your employer/s for uPaged shifts, answer Yes.
If you do not wish to claim the tax free threshold, answer No.
Do I have a Higher Education Loan Program (HELP), VET Student Loan (VSL), Financial Supplement (FS), Student Start-up Loan (SSL) or Trade Support Loan (TSL) debt?
To put it simply, if you haven't heard of any of these, chances are you don't have one.
If you have one, answer Yes.
If you do not have one, or you have repaid your debt in full, answer No.
For more information, visit the ATO's websites below and/or seek advice from your accountant.