Question 8/9 on the TFN declaration - Do you want to claim the tax-free threshold from this payer? : Teresa Tran & Associates

On the older forms, its question 8.

Now they moved it to question 9.

But the wording is still the same:

When to answer YES if

this is NOT your only job (i.e. your 2nd, 3rd, 4th, etc job). You can only claim the tax-free threshold with ONE employer. All other employers you must tick NO

OR
are not an Australian tax resident. You pay tax at a different rate than Australian tax residents. Thus you do not receive a tax free threshold

OR
if you currently earn an additional of atleast $1000 from other sources of income like trust distribution, your business abn income, etc

Failure to do so will result in a higher tax payable when you do your tax return.

Its a trade off between

- having more net income now and having more tax to pay

- having less net income now and have less tax to pay.

Reference