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mr_rbman

tax guru's out there

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looks pretty likely i'll be starting a new job in the next month or so.

i have just over 7 weeks annaul leave up my sleeve and i'll be taking a week off between jobs so i'll get paid an extra 6 weeks this financial year in theory meaning i'll get paid 58 weeks this year.

Does this mean i'll get taxed extra on that money and if so will it be now or at tax time?

Some people have said i will and others have said i won't due to the fact i'm on $55k a year and the next tax bracket isn't til $75k?

any help would be appreciated!

 

Cheers!

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Are you going to get your annual leave paid out before the new financial year?? If so then yo will get taxed on it as a lump sum payment if that makes sense.

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You will pay more tax, because you will have earned more income, the proportion of tax payable won't change until you hit the next bracket.

 

See here for brackets:

http://www.ato.gov.au/individuals/content.asp?doc=/content/12333.htm

Each employer will look at the amount you have earned each week and then withhold an amount for tax according to these:

http://www.ato.gov.au/businesses/content.asp?doc=/content/33283.htm

 

So if they pay you 7 weeks annual leave in one go, you will have tax withheld as though you earned this every pay period.(See the above tax table link) You will get this back on your tax return.

 

They do not take into account any money you have earned from other sources.

 

At the end of the year all of the income that you have earned from the separate jobs will be added up as will your tax withheld and the difference between the tax you should have paid and the tax you have withheld will be the resulting tax return/payable.

 

-Kieran

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Sorry to hijck, but i also have a tax Q,

 

Im a normal employee, In a defacto relationship with a uni student. Lived together for 3 year. I am 22.

 

Last week grossed $1143.85, My net was $797.65, meaning tax witheld was $346.

 

I normally gross betwwen $1000-1300pw, depending on how much i feel like working.

 

Is this enough tax?

 

My boss said their was 3 different tax columns within each bracket, and being in a relationship can also have an affect on tax.

 

I have NFI on what he was going on about. I do know that I DO NOT want another tax bill this year.

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You will pay more tax, because you will have earned more income, the proportion of tax payable won't change until you hit the next bracket.

 

See here for brackets:

http://www.ato.gov.au/individuals/content.asp?doc=/content/12333.htm

Each employer will look at the amount you have earned each week and then withhold an amount for tax according to these:

http://www.ato.gov.au/businesses/content.asp?doc=/content/33283.htm

 

So if they pay you 7 weeks annual leave in one go, you will have tax withheld as though you earned this every pay period.(See the above tax table link) You will get this back on your tax return.

 

They do not take into account any money you have earned from other sources.

 

At the end of the year all of the income that you have earned from the separate jobs will be added up as will your tax withheld and the difference between the tax you should have paid and the tax you have withheld will be the resulting tax return/payable.

 

-Kieran

 

 

Cheers Kieran.

Yes it will be paid in a lump sum so basically i will get taxed severely up front but will get it back at tax time?

This years tax should be good as it'll be my first year with an investment property too!

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Sorry to hijck, but i also have a tax Q,

 

Im a normal employee, In a defacto relationship with a uni student. Lived together for 3 year. I am 22.

 

Last week grossed $1143.85, My net was $797.65, meaning tax witheld was $346.

 

I normally gross betwwen $1000-1300pw, depending on how much i feel like working.

 

Is this enough tax?

 

My boss said their was 3 different tax columns within each bracket, and being in a relationship can also have an affect on tax.

 

I have NFI on what he was going on about. I do know that I DO NOT want another tax bill this year.

 

Based only on the income you stated the tax sounds about right. There are variables which can change the taxable amount (eg. Providing TFN, Medicare levy, having a spouse or HECS etc etc). The simple TAX calculator on the ATO website will help you. According to the information you supplied here are the results:

 

Gross Weekly Earnings: $1,143.85

Tax Applicable: $325.00

Net Pay: $818.85

 

If you continue to earn the same amount and have the same tax taken out you will get money back at the end of the financial year.

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