This form helps your employer to work out how much PAYG (Pay As You Go) they should withhold from your gross wages based on the ready reckoners as published by the Australian Taxation Office (ATO).
While the form itself is pretty self explanatory, one of the most common questions I get asked is in relation to claiming the tax free threshold.
At present, the tax free threshold is $18,200 for resident taxpayers and you would usually claim the tax free threshold from your primary job.
In the past when the tax free threshold was a much lower $6,000, it was common practice to only ever claim the tax free threshold from one employer. However if you have a second job, and your total combined income is expected to be less than $18,200 then you can claim the tax free threshold from both employers!
BUT BEWARE: If you have income from other sources (such as interest), or your wages end up higher than expected…you may end up with tax to pay upon lodgement of your income tax return – so always seek professional advice (preferably from ME!) if you are ever in doubt.