When filling in an Australian Tax File Number Declaration, we find the same two questions are asked by most candidates.
1) Am I an Australian resident for tax purposes (question 7)
2) Do I want to claim the tax free threshold (question 8)
In short, here are the answers that you should follow:
Question 7
Are you an Australian Resident for Tax Purposes?
– If you are an Australian resident, you would tick YES.
– If you are NOT an Australian Resident you would tick NO. (this includes candidates on Visa’s)
Question 8
Do you wish to claim the tax-free threshold from this payer?
– Tick YES to get taxed at a LOWER rate and have more money in your bank account each week.
– Tick NO to get taxed at a HIGHER rate and get LESS money in your account each week but more tax back when you do your return.
**Note – You must earn more than $356.00 per week in order to be eligible to claim the tax-free threshold.
**Note – If you have already ticked YES for your current job, you must tick NO for your second job. In other words you can NOT claim it twice.
For a more detailed description, have a read from the ATO website:
https://www.ato.gov.au/Forms/TFN-declaration/?page=3#Section_A__To_be_completed_by_the_PAYEE
