Hey guys, fairly straight forward question.

Few weeks ago I should Have been paid about $1300, I received about $1000 (after tax) is this right? $300 in tax?
I'm just wondering whether I got jipped of a few hundred at work (and then tax taken off say $100?)..

Only other question is, any idea roughly how much tax would be for $950 ?

Or better yet, anybody know what the tax rate is after the first $100? ($100 tax free threshold thingy)...

Last 5 years I've been living on $80 - $100 a week and now only getting a hell of alot more so it's all kinda new to me =)

I've been told it would be approx 20%, is this right? It seems to hold up for the $1300 and the missing Simoleans.

[edit] Forgot to mention - this is fortnightly

Cheers guys,

- J

Not too sure
but another question - what is the tax free threshold?

First $100 you don't get taxed on, ever $1 after that gets XX cents tax (depending on your pay bracket?)

I dont know that XX part :\

neg... if it was cash in hand, you can lie and not pay tax on a cent;)

Just wondering what the annual total was - i think the first 100 is if your getting centrelink aswell - you could earn an extra 100 / week before they start reducing your payments.

Just curious on the totals - got taxed 3K in 3 months :S

Well, as far as I know it also depends on how long you've been working (well not really but it helps)...
Because if you've only worked say, 3 months of the financial year - although you're getting taxed out your ass each pay you receive, the total you earn for the tax year is a s***load less than if you were earning that much for the full 12 months, and thus you will get back heaps on tax return because you'll be in a much lower tax bracket...
That's what I'm hoping for anyway, which, if is the case I don't midn too much cause the government would be doing me a favour and putting some money aside for me (whilst taking a little nest egg for themselves :/)

Though like I said, my understanding of tax is small.

Sounds about right.

Welcome to the high tax bracket and getting screwed.

You get taxed at the bracket that that pay would equal if you were on it for the year... basically if you have a big fortnight you'll get taxed at a higher bracket than normally perhaps, but at the end of the financial year if you're still in the lower bracket you'll get it back as part of your tax refund.

And the first six thousand dollars you earn in a year is tax free, you get taxed it.. but you should get it refunded as above. I think below 20k or thereabouts its 14c in the dollar or something, dunno... Dad's an accountant.

Awesome, thanks isaac, sounds like I'll be getting a nice refund at the end of the financial year, definately won't be earning that much when uni comes back around so I should be in a pretty low bracket + I'll only have been working at most 5 months of the financial year...
Hopefully I'll get at least a grand back...
This bodes well =)

Cheers

- J

returning to IT, or something else?

sif ever returning to IT, naw, I'm continuing on with the nursing degree...
How's your new degree holding up to you step? or haven't you finished yet?
or did you change? Don't think I've spoken to you since I would have last seen you at uni =)

Also, if you have HECS debt, that adds a sizeable chunk onto your tax every pay that you earn over the threshold for HECS repayments.

If at the end of fiscal, you havent actually earned the 22,000 or whatever it is for HECS repayments, you'll get it all back. But its probably a good idea to throw that back on your HECS, since you are accumulating interest and that debt's not going away.

Thanks for the extra info Dan - didn't know that either!

Depends on how much a year you earn...Tax rates 2004-05

$0 – $6,000 Nil

$6,001 – $21,600 17c for each $1 over $6,000

$21,601 - $58,000 $2,652 plus 30c for each $1 over $21,600

$58,001 – $70,000 $13,572 plus 42c for each $1 over $58,000

Over $70,000 $18,612 plus 47c for each $1 over $70,000



$650 per week = $33,800pa. So $2,650 / 52 weeks = $51 a week

Then $33,800 - $21,600 = $12,200 taxable income per year.

So 30cents in the dollar on $12,200 = $3,660 per year, or $70.3 a week.

$51 + $70.30 = $121.30 a week, or $242.60 a fortnight.


last edited by möoby at 06:34:57 30/Jan/05

its correct

my pay is some 1200 gross and I get 940 after tax.

Isaac, mooby and dan are all on teh money so to speak.

Ace, i dont think u acheieved a powerful mindset b4 that post buddy.

also, keep your HECS payments as high as pos cos if u do earn enuff during the year, but haven't paid it, we'll catch u at tax time too.

and Billy....(i didnt hear nothing).

yeah, it's too early

hahah acetame 1 hunter 0

also, as everyone else said that sounds about right if you include HECS.

$1300 gross = $650 gross per week. Tax should be around $140 per week and hecs should be around $30 per week.

YOu could just ask for a payslip which will have it all broken down for you?


but put it this way - to earn $1000 net a week your salary needs to be ~$100k a year - death and taxes!

yeap, welcome to tax.

I lost fucloads last year in tax :( its evil, we are the highest taxed country in western society (I think thats what I read)

Interestimgly enough, the other day I read an article about tax reform, there are plans to raise the tax free threshold to $12K - this would cost the givt $4 BILLLION annually in lost revenue.

There is plans to remove the top 2 tax brackets - cost the govt $12 BILLION annually in lost revenue, and they are alos looking to get rid of bracket creep.

Clearly if they are (govt) losing income (tax) they will need to cut back on spending, so I can't see all the tax changes taking place

I saw something else interesting on the news this morning... the federal govt. estimates its missing out on something like $4 billion AUD a year on cash-in-hand transactions which don't forward on the GST. So much for tax reform eh johnny...

woot - found the article

http://www.heraldsun.news.com.au/common/story_page/0,5478,12016741%255E1702,00.html

so I got a few figures wrong, its all good

the $12K tax free threshold = $10billion

cutting 47% tax rate = $3 billion

cutting both 47 and 42% = $13 billion

Ouch thats alot of lost revenue. Though i'd still like to see the tax free threshold to 12K, just recoup the loss of income by increasing the top 2 brackets or so.

Under the desk pay = win

Also illegal

Well unfortunately Australia enjoyed a relatively low (working) population and relatively high standard of social services (yes I did say "relative" so back off!).

Here's a handy calculator for you:

http://www.ato.gov.au/scripts/taxcalc/calc_standard_hire.asp

I just put in your pay (fortnight) and left everything as default (as I don't know your exact situation) and it gave me:

Gross Fortnightly Earnings: $1,300.00
Tax Applicable: $264.00
Less Tax offsets and Family Tax Benefit: $0.00
Less Medicare Levy Adjustment: $0.00
Tax Withheld : $264.00
Net Pay: $1,036.00

So the amoutn deducted sounds pretty close.

Yeah $300 in taxes is a lot especailly when you're used to paying less than that (but on lower income). If you were to continue to get that pay every fornight for the full finacial year, you'd be getting about $33,800.

I've sort of go numb at tax amount taken off my pay these days, I just don't look at it until the tax return time.

My accountant told me to look at it this way, it's better to be able affort to pay high tax bracket than being on the dole. ;) Ok, ok so that might not ease the pain but it's a placebo so take it :)

If i remember right you can get the sheet with all the amounts you pay depending on what you earn from the post office (and i know we used them back in high school).You just look up what you earn,work out if your in the tax free threashold or not,and the figure is there.

Sure its 17c? As mine doesn't add up - 10752 gross - 2146 tax (for this select period). It equates to around 20c.

depends how long the period is, and don't forget hecs.

I lost fucloads last year in tax :( its evil, we are the highest taxed country in western society (I think thats what I read)

Bulls***, try scandinavian countries. Its like 47% no matter what wage you earn. Have to ask merlyn on this to confirm.

If at the end of fiscal, you havent actually earned the 22,000 or whatever it is for HECS repayments, you'll get it all back.

Only if you claim for it on your tax return. You won't automagically get it back, unless you specifically put it on your claim.

If at the end of fiscal, you havent actually earned the 22,000 or whatever it is for HECS repayments, you'll get it all back. But its probably a good idea to throw that back on your HECS, since you are accumulating interest and that debt's not going away.

HECS is the best loan you can ever get!
Interest is calculated at inflation, and banks interest is always going to be higher than that! :D
Spend it up while ya can i say! :)