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_Peggy94(Newbie)Newbie
26 July 2021

Hello,

I only earned 46,000 for the year and paid around 6,000 tax from my job and received 12,000 single parenting payment plus family tax a+b. I have two dependants aged 4&9. Centrelink know I work and I declare with them my earnings. I have prepared my estimate to see what I would be receiving back, and it says I'm owing 1000 dollars? Do you know why this is. I was expecting to receive a good amount back :(

I know there are fees for Medicare etc etc but I thought being a single mother on a low income, I would not have to pay this?

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3,403 views
1 replies

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Most helpful replyATO Certified Response

JodieR_ATO(Community Support)Community Support
ATO Certified Response27 July 2021

Hi @Peggy94,

We look at your overall earnings for the financial year to determine tax payable. You're also entitled to the first $18200 tax free as an Australian resident. If you had employment income, your employer withholds tax for you. Generally although taxable, Centrelink payments do not have tax withheld throughout the financial year.

Once we determine your taxable income, we may apply the medicare levy. Thereafter you'd have an overall amount of tax payable. If there were not enough tax credits withheld, you would have a debt to pay. Bear in mind you may also be entitled to the low middle income tax offset (LMITO) and LITO. This is applied once you lodge your return.

You will know the final outcome to your return when your notice of assessment issues (NOA). If you still have concerns you can let us know.

All replies

Most helpful replyATO Certified Response

JodieR_ATO(Community Support)Community Support
ATO Certified Response27 July 2021

Hi @Peggy94,

We look at your overall earnings for the financial year to determine tax payable. You're also entitled to the first $18200 tax free as an Australian resident. If you had employment income, your employer withholds tax for you. Generally although taxable, Centrelink payments do not have tax withheld throughout the financial year.

Once we determine your taxable income, we may apply the medicare levy. Thereafter you'd have an overall amount of tax payable. If there were not enough tax credits withheld, you would have a debt to pay. Bear in mind you may also be entitled to the low middle income tax offset (LMITO) and LITO. This is applied once you lodge your return.

You will know the final outcome to your return when your notice of assessment issues (NOA). If you still have concerns you can let us know.

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