what is the tax free threshold 2023
The tax‑free threshold for the 2022–23 income year in Australia is $18,200 for residents.
Quick Scoop: What that actually means
- You can earn up to $18,200 in the 2022–23 financial year (1 July 2022 – 30 June 2023) without paying income tax on that portion.
- Once your income goes above $18,200 , you start paying tax only on the amount over that threshold, at the relevant marginal tax rate.
- The $18,200 tax‑free threshold has been unchanged for multiple recent years, including 2021–22 and 2022–23.
If you started or stopped being an Australian resident during the year, the effective tax‑free threshold can be pro‑rated using a formula (base amount plus an amount per month of residency), which reduces how much tax‑free income you can claim for that partial year.
Key facts at a glance
| Financial year | Tax‑free threshold (resident) | Notes |
|---|---|---|
| 2022–23 | $18,200 | Standard threshold for Australian residents, before Medicare levy or offsets. | [9][1]
Information gathered from public forums or data available on the internet and portrayed here.
