In Australia, the tax-free threshold for income is the amount of money you can earn each financial year without having to pay income tax on it.
For Residents: The tax-free threshold is $18,200 per year (from 1 July 2022). This means you can earn up to $18,200 in a financial year without paying any income tax.
For Non-Residents: Non-residents for tax purposes do not have access to the tax-free threshold. They are taxed from the first dollar of their income earned in Australia.
For international students who are considered residents for tax purposes, they can apply for the tax-free threshold when they start working in Australia. This allows them to earn up to $18,200 per year before any income tax is deducted from their pay.
It's important to note that if you have multiple jobs or sources of income, the tax-free threshold applies to your total income across all jobs. If you're unsure about your residency status or tax obligations, consulting with a tax professional or the Australian Taxation Office (ATO) can provide personalized advice based on your circumstances.