JMcKie Posted February 19 Share Posted February 19 Hi all, I've been offered to do some contracting work for my old UK employer. I'm trying to work work out how much tax I would have to pay when submitting my tax return. I'm a full-time employee that sits between the $120k-$180k bracket and I'm already accessing the tax-free threshold in my current role. Does anyone know how much I would have to pay back at tax time if I decided to carry out the work? Thanks in advance Quote Link to comment Share on other sites More sharing options...
Marisawright Posted February 19 Share Posted February 19 16 minutes ago, JMcKie said: Hi all, I've been offered to do some contracting work for my old UK employer. I'm trying to work work out how much tax I would have to pay when submitting my tax return. I'm a full-time employee that sits between the $120k-$180k bracket and I'm already accessing the tax-free threshold in my current role. Does anyone know how much I would have to pay back at tax time if I decided to carry out the work? I'm not sure what you're asking. You will add the income you get from this new role to the income you get from your current role, and declare them under "income" on your tax return. You'll then pay tax on that figure. Use any tax calculator to work out what that figure will be. https://moneysmart.gov.au/work-and-tax/income-tax-calculator 1 Quote Link to comment Share on other sites More sharing options...
JMcKie Posted February 19 Author Share Posted February 19 I'm trying to work out if it's worth my time to do the work or not depending on the amount of tax I will have to pay at tax time (I know this isn't always easy to know). Thanks for sharing the link much appreciated. Quote Link to comment Share on other sites More sharing options...
InnerVoice Posted February 19 Share Posted February 19 3 hours ago, JMcKie said: Hi all, I've been offered to do some contracting work for my old UK employer. I'm trying to work work out how much tax I would have to pay when submitting my tax return. I'm a full-time employee that sits between the $120k-$180k bracket and I'm already accessing the tax-free threshold in my current role. Does anyone know how much I would have to pay back at tax time if I decided to carry out the work? Thanks in advance As Marisa has said. You'll pay tax at your marginal rate of 37%, unless the additional income takes you into the 45% bracket. There's also the Medicare Levy (2%), and the Medicare Levy Surcharge (1-1.5%), so you'll be paying at least 40% in deductions on that UK income. However, the new tax rates from 1 July 2024 should soften the blow. Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted February 19 Share Posted February 19 Work out the tax based on just your Aus salary. Work out the tax based on Aus salary plus contracting income. I use www.taxcalc.com.au for this sort of exercise. You might use the extra income to make a personal super contribution? Best regards. 2 Quote Link to comment Share on other sites More sharing options...
InnerVoice Posted February 19 Share Posted February 19 12 hours ago, Alan Collett said: You might use the extra income to make a personal super contribution? That's what I've been doing the last few years to keep my total income under $120k (the 37% bracket). It's a no-brainer given I'm only a couple of years off my preservation age. 1 Quote Link to comment Share on other sites More sharing options...
Jon the Hat Posted February 20 Share Posted February 20 Do check your employment contract to make sure you are allowed to take on additional work. 1 Quote Link to comment Share on other sites More sharing options...
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