A mortgage broker should be well versed in information about taxes in Australia to successfully assist any clients that may have questions and concerns regarding this topic. The tax-free threshold for 2022 in Australia is $18,200. This indicates the amount of income an individual will not be required to pay tax on. Income equaling up to more than the tax-free threshold will be subjected to taxation.
However, there are multiple different types of income that are not taxable in Australia, including the following examples:
- Certain types of lump sum payments that a beneficial owner of an insurance policy receives upon surrender, including payments for permanent work-related injuries, mortgage protections, and terminal illnesses
- Certain types of educational payments from the Australian government, including payments for Commonwealth secondary education assistance and allowances paid to students under the age of 16
- Certain types of pensions paid by the Australian government, including disability support pension payments and service pension payments made to veterans under pension age
- Certain types of allowances and payments made by the Australian government, including carer allowance payments and child care subsidy payments
- Various funds gifted by friends and family members for special occasions
- Various funds received through raffles or lottery draws
- Various funds received through child support payments or spousal maintenance payments
Income earned yearly that is considered taxable in Australia is as follows:
- Fringe benefits
- Tips
- Wages and salaries
- Bonuses
- Investment income
- Commissions earned