income tax

[Guest ASPIS4]

Can anyone explain the tax system, I understand that everyone wether self employed or not claims back tax etc at the end of the year, unlike here you claim tax back only for self employed, confused:mask:

[Life on easy street]

I am a electronics Technician

 

I worked on a temp contract and the tax was taken at the end of each week.

So I guess it is very similar to the U.K.

[Guest fatpom]

Can anyone explain the tax system, I understand that everyone wether self employed or not claims back tax etc at the end of the year, unlike here you claim tax back only for self employed, confused:mask:

Check out the ATO web site.

At the end of each tax year everyone (including employees) submits a tax declaration to the ATO declaring all earnings etc. Most people expect a tax rebate and a decent tax agent or accountant will often get you something of a rebate. Although mine is rarely worth the effort.

 

If you need more advice, you'll need to talk to an austrlian accountant because as in all tax issues, its very complex (and boring ).

[Quoll]

We have pay as you go tax so your employer will calculate how much tax you need to pay on the salary that you earn. In July, you will complete a tax return form where you can claim certain things to offset against the tax you have paid so it might be work related mileage or uniform cleaning, membership of professional organizations or attendances at conferences etc etc. There are a whole raft of things you may be able to claim for. In addition, you also have to declare any interest on savings which is technically part of your income. You also have to work out whether you have to pay more than the 1% medicare levy. With luck the nett result will be a few dollars refund but sometimes they whack you with a bill! It is worth keeping all the receipts for work related expenses, mileage logs (not to and from work but if you are required to go between places in the line of work.

 

You can avoid some tax by salary sacrificing and your employer will tell you what things can be sacrificed against like a car for example but that is another whole complicated area!!!

[Guest Liam]

Tax rates 2007-08

 

Taxable income

Tax on this income

$1 - $6,000

Nil

$6,001 - $30,000

15c for each $1 over $6,000

$30,001 - $75,000

$3,600 plus 30c for each $1 over $30,000

$75,001 - $150,000

$17,100 plus 40c for each $1 over $75,000

$150,001 - over

$47,100 plus 45c for each $1 over $150,000

 

The above rates do notinclude the Medicare levy of 1.5%

 

These are the personal tax rates. You use your gross salary/earnings to work out your base tax paybale. If you earned extra income from savings and investments then this must be added to the total before applying the tax rate.

 

Now if you had work related expenses like Course fees or investment related expenses like interest on an investment mortgage the these costs can be deducted from the totals before working ou t the tax.

 

In relaity your employer deducts tax on the gross wage so you pay tax on that total. When you do your tax return at the end of the year and claim for expoenses you can then get a refund of the extra tax paid from your wage. On the otherside if you have earned a lot of money from savings or investments throughout the year, you may have to pay extra tax.

 

It is always and I mean always worth seeing a Tax Accoutant. IT may cost you $80-$200 bucks but I almost guarantee they will save you that as a minimum!

 

Last year I was going to do my ownm tax an worked out my own figure which showed a refund of over $3,000. I was delighted but got worried so I had my accountant check my figures.......got $9,000 back through her! Well worth the $150 fee.

 

hope this helps

 

Liam

[Guest ASPIS4]

thanks for all the info