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akiralx

Two queries: Medicare levy and Aus CGT

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I have received an ATO demand for the Medicare levy - is it normal for most Australian taxpayers to pay this as a lump sum after submitting their tax return? I assumed it would be deducted from my pay via PAYE (though I work for a large bank so I assume our payroll know what they are doing).

 

This is my first full tax year as a resident. No objection to paying it - but I don't want to be paying it twice over! Note this is about the levy, not the surcharge (which I don't have to pay as our income isn't high enough).

 

Also we are thinking of selling our UK house, which I bought in 1999 and lived in it until Sept 2009, when I came to Aus. It is now let to tenants.

 

I have had it confirmed by HMRC in the UK that there will by no UK capital gains liability if we sell it within 3 years of leaving OR have five full UK tax years after leaving the UK before selling.

 

So if we sell before Sept 2012 we are OK - but what is the situation with the ATO concerning CGT? I assume any liability would only be on any increase in value since 2009 (which would be slight in any event...).

 

Thanks

 

Alex

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Yes, it is quite usual to get a demand from the ATO once you have done your tax return. They generally reckon that it should even itself out once people have made all their work deductions but some occupations dont lend themselves to enough deductions and once you have paid your income tax then the remainder of the demand is, essentially, the medicare levy. If you can rack up work related deductions next year then your deductions should take care of the levy.

 

Cant help you with CGT

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