Why did I still get taxed when I claimed the tax-free threshold?

Tax withholding is mandatory under Australian tax law, even when the tax-free threshold has been claimed. 

Payroll calculates tax each pay based on the amount paid, so some tax may still be withheld depending on the earnings for that pay period. 

If your total earnings for the financial year are below the tax-free threshold, any tax withheld may be refunded when you lodge your tax return. 

For advice regarding your personal tax circumstances, please contact the Australian Taxation Office (ATO) or a tax professional.