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boganbear

PAYG tax on savings interest

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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!!!

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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.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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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!

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