Whilst the ATO publishes that the tax-free threshold is $18,200, income earners can actually earn more than this before they have to start paying tax.

The Low Income Tax Offset (LITO) is a $445 tax offset available to Australian residents who earn less than $37,000. This means that eligible taxpayers can earn up to $20,542 before they have to pay any tax.

Similarly, the Seniors and Pensioners Tax Offset (SAPTO) is an offset available for those eligible for the Age Pension (over 65 years old). When SAPTO is combined with LITO, eligible taxpayers can earn up to $32,279 (for singles) or $28,974 each (for a couple) before they have to pay any tax.

 

Source: David Stone, WLM Financial Services