boganbear Posted October 4, 2011 Share Posted October 4, 2011 I've just received a strange letter from the ATO and even phoned them and am none the wiser. It was like talking to a robot. Basically, I have to pay tax on my savings in advance, paying every quarter about $250 at a rate of 32%. I don't earn megabucks and neither do I have millions in the bank. It's just my savings for a house deposit. They won't let me sort it out and pay off any money if I owe them any when I do next year's tax return. No one at work has heard of this so has anyone here received a similar letter or can explain it in plain English!!! Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted October 5, 2011 Share Posted October 5, 2011 Sounds like you have entered the PAYG Instalments system. You can vary the instalment rate if it is appropriate to do so. Consider engaging a tax accountant if you are not clear about what is required - or do-able. Best regards. Quote Link to comment Share on other sites More sharing options...
boganbear Posted October 5, 2011 Author Share Posted October 5, 2011 Thanks for your reply. I don;t really have a choice about it so I;ll have to pay more tax upfront. At least when I do my tax return I shouldn't end up owing them money but the problem was mostly caused by a former employer underpaying tax. I can understand the situation more if i earned a lot of money but I don't and its not as if I have megabucks -= just savings for a deposit for a house! Quote Link to comment Share on other sites More sharing options...
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