I was researching if as an Australian citizen working outside Australia for more than six months a year if I can still claim the tax free threshold? It says the following:
Hello, this is Bing. I searched the web for your question and found some relevant information.
According to the Australian Taxation Office if you are leaving Australia to live overseas, your tax-free threshold for the year will be lower than the threshold available to most taxpayers who are Australian residents for the full year. You are entitled to a tax-free threshold amount of $13,464 plus ($4,736 divided by 12, multiplied by the number of months you were an Australian resident for tax purposes, counting the month you left).
If you are a foreign resident for tax purposes, you are not entitled to the tax-free threshold and pay tax on your Australian income up to $120,000 at a rate of 32.5%2.
Does this mean if I am outside Australia for a little over 7 months I would loose out big time compared to if I was in Australia for a day under 6 months? Would I still get the normal tax brackets or would it change? Anyone good at maths? I assume I wouldn't be considered a foreign resident since I am Australian and have lived in Australia most of my life.
Cheers.
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