the first $18,200 of your yearly income isn't taxed. This is called the tax-free threshold. You can claim the tax-free threshold to reduce the amount of tax that is withheld from your pay during the year. When you start a job, your payer (employer) will give you a Tax file number declaration to complete. Centrelink is also a payer and they will give you this form if you apply for their payments.
If ur a Centrelink recipient of a part pension ( portion is taxable) who hasn’t applied to get the tax free threshold.
Would u then qualify for the cash refund from franking credits if you income is below $18,200?
The only difference that I can see, is that a company is a 'payer' who pays withholding tax for the dividends.
Theoretically you are paying tax as it is earned from $1 - $18,200.
If you haven’t elected - was never asked since retiring- for the tax free threshold application form, shouldn’t that qualify for a cash refund. Since it constitutes the default option to pay tax from $1.
The other question that I have is, why did Labor increase the threshold from $6000 and what was lost to afford this higher threshold. There also must have been some administrative saving logic behind this plan.
