The tax-free threshold is set as a yearly figure, $18,200, but most people are paid weekly or fortnightly. So what does it mean for each pay, and what happens if you earn less than $18,200 in a year?
This guide converts the threshold into weekly, fortnightly and monthly amounts, shows what the 2026-27 weekly tax table withholds with and without it, and explains how students and part-time workers get tax back when they earn under the threshold. Figures were checked against the ATO weekly tax table and the ATO lodgment rules for 2026.
It is written for students, casual and part-time workers, and anyone starting their first job. If you are juggling two jobs, our second job tax guide covers that case in depth.
Key takeaways
- The $18,200 yearly threshold is about $350 a week, $700 a fortnight or $1,517 a month.
- With the threshold claimed, payers withhold nothing until pay passes about $363 a week, $726 a fortnight or $1,573 a month.
- From 1 July 2026, $500 a week has $21 withheld with the threshold and $90 without it.
- If tax was withheld and you were a resident all year, you must lodge a return to get it back.
- Earn under $18,200 for the full year as a resident and your income tax is nil.
- Claim the threshold from one payer unless your total income will be $18,200 or less.
The tax-free threshold by pay period at a glance
| Pay period | Threshold equivalent | Withholding starts above (threshold claimed) |
|---|---|---|
| Year | $18,200 | – |
| Week | $350 | $363 |
| Fortnight | $700 | $726 |
| Month | $1,517 | $1,573 |
Source: ATO how to claim the tax-free threshold and ATO multiple jobs or change of job, checked 9 October 2026.
Why does withholding start above $363 a week, not $350?
Spread over 52 weeks, $18,200 is $350 a week. But the ATO tax tables also build in the low income tax offset, which wipes out tax on income a little above the threshold. That is why the ATO says that, once you claim the threshold, your payer withholds tax when you earn above $363 a week, $726 a fortnight or $1,573 a month.
The threshold itself is the same in 2025-26 and 2026-27. What changed from 1 July 2026 is the rate on the next band, which fell from 16c to 15c per dollar on income from $18,201 to $45,000. See the ATO resident tax rates or our older tax brackets article for how the bands have moved.
How much tax is withheld each week with and without the threshold?
These figures come from the ATO weekly tax table for payments made from 1 July 2026. Column 2 applies when you claim the threshold, column 3 when you do not.
| Weekly earnings | Withheld with threshold | Withheld without threshold | Difference per week |
|---|---|---|---|
| $300 | $0 | $52 | $52 |
| $400 | $6 | $72 | $66 |
| $500 | $21 | $90 | $69 |
| $600 | $42 | $120 | $78 |
| $700 | $65 | $152 | $87 |
| $900 | $106 | $217 | $111 |
| $1,000 | $138 | $249 | $111 |
The amounts do not include study loan repayments, which are withheld separately if you have a HELP or similar debt. Your payer may also use the fortnightly or monthly tables listed on the ATO tax tables page, which give the equivalent result for those pay cycles.
Who should claim it on a student or part-time job?
Students and part-time workers get the same threshold as everyone else if they are Australian residents for tax purposes for the full year. The ATO explains this on its starting your first job pages. Residency is tested under ATO rules, which you can check through the ATO tax residency guidance.
- One job, resident: claim it. Most students on modest hours will have little or nothing withheld.
- Two jobs or a job plus a taxable Centrelink payment: claim it from one payer only, unless you are certain your total for the year will be $18,200 or less.
- Working holiday maker: do not claim it. The 2025-26 working holiday maker rate is 15c per dollar up to $45,000.
- Income rises later in the year: if you claimed from two payers and now expect to pass $18,200, give one of them a withholding declaration to stop the claim.
Step-by-step help with the form is in our guide on how to claim the tax-free threshold. For the rules behind who qualifies, see what the tax-free threshold is.
Can you get a refund if you earn under $18,200?
Yes, if tax was withheld. Under the ATO lodgment rules for 2026 returns, you must lodge if you were an Australian resident and tax was withheld from your pay. If your taxable income for the full year was $18,200 or less, no income tax is payable, so the tax withheld generally comes back as a refund, less any amounts you owe the ATO or other agencies.
If no tax was withheld and no other lodgment reason applies, you may not need to lodge a return. In that case the ATO asks you to lodge a non-lodgment advice unless an exception applies. For 2025-26 returns due by 31 October 2026, our tax return guide explains how to lodge and our tax return checklist lists what to gather. Our guide to how long refunds take covers timing.
Worked example: a student who did not claim the threshold
Mia, a full-time university student and Australian resident, works at a cafe in 2026-27 and earns $300 a week for 40 weeks. She ticks No to the threshold on her TFN declaration by mistake.
Tax withheld: $52 a week (weekly tax table, no threshold) x 40 weeks = $2,080.
Her income for the year: $300 x 40 = $12,000. That is below the $18,200 threshold, so her income tax is nil.
When Mia lodges her 2026-27 return, the $2,080 withheld is refunded, assuming no other income or debts. Had she ticked Yes, the table shows $0 withheld and she would have had the $52 in each pay instead.
Rule of thumb: Divide by 52 for a quick check. If your regular weekly pay is under about $363 and this is your only job, claiming the threshold usually means nothing is withheld.
Common mistakes with the tax-free threshold and pay
- Ticking No on your only job: you get the tax back, but only after you lodge, so you go without it all year.
- Ticking Yes on two jobs with income over $18,200: each payer withholds as if it were your only job, which leads to a tax bill. See our second job explainer.
- Not lodging because income was low: if tax was withheld, you must lodge to get it back.
- Relying on old figures: the earlier version of this guide showed weekly amounts that did not match the current ATO tax table.
- Forgetting study loan repayments: HELP and similar debts add extra withholding on top of the amounts in the table.
FAQ about the tax-free threshold and your pay
How much is the tax-free threshold per week?
The ATO says the $18,200 annual threshold is about $350 a week, $700 a fortnight or $1,517 a month. If you claim it, the 2026-27 tax tables show no withholding until your weekly pay goes above about $363, because the tables also allow for the low income tax offset. Above that, withholding starts at small amounts.
I earned under $18,200 but tax was taken out. Can I get it back?
Usually, yes. If you were an Australian resident all year and tax was withheld from your pay, you need to lodge a tax return. Your taxable income under $18,200 means no income tax is payable, so the tax withheld is generally refunded, less any debts you owe to the ATO or other government agencies.
Do students get a different tax-free threshold?
No. A student who is an Australian resident for tax purposes for the full year gets the same $18,200 threshold as anyone else. The difference is that students often earn under the threshold, so claiming it on their only job usually means little or no tax is withheld. Different rules apply to income that is not salary or wages for people under 18.
Should I claim the threshold on a casual job?
If it is your only job and you are an Australian resident for tax purposes, generally yes. If you have another job or a taxable Centrelink payment, claim it from only one payer unless you are certain your total income for the year will be $18,200 or less. Working holiday makers should not claim it.
Do I need to lodge a return if I earned under $18,200?
It depends. If tax was withheld from your pay, you must lodge, and that is how you get the refund. If no tax was withheld and none of the other lodgment reasons apply, you may not need to lodge, but the ATO asks you to lodge a non-lodgment advice unless an exception applies.
Talk to specialist before it costs you
15-minute discovery call. No obligation, no jargon.
Talk to a registered tax agent
Earned under the threshold but had tax withheld, or not sure what to tick on a new job? The registered tax agents at Nanak Accountants can check your withholding and lodge your return to get back what you are owed. Call 1300 626 258 or book a discovery meeting.
This article is general information only and is not personal tax or legal advice. Figures and rules were checked against the ATO tax-free threshold, multiple jobs, weekly tax table (payments from 1 July 2026), resident and working holiday maker rates, withholding declaration and 2026 lodgment pages on 9 October 2026. Rates and thresholds change, so confirm the current position before acting.
