Reduced Tax-free Threshold

The Reduced Tax-free Threshold screen is used to calculate the tax-free threshold that will be used when calculating tax on taxable income or any offset that requires part-year calculations.

Threshold category: Select one of the entries from the list:

• commenced residency (in Australia), or

• stopped residency (in Australia).

Enter Relevant Date: Enter the applicable date. For example, if the taxpayer commenced or stopped residency, enter that date. The date must be entered in the format DD-MM-CCYY.

Number of Months: The system calculates this number from the values entered in the two previous fields. The maximum number of month’s reduction is 11 and the any part month date is taken to be a whole month.