Author: BlakeATO(Community Support)Community Support 10 Mar 2022
Hi @RaelaSavchuk
Your end of financial year tax owing as an employee and from your business isn't calculated separately. Once you work out your income from both sources, it combines to one figure of taxable income. Your employer withholds tax on your income and this is credited on your tax return.
Once you lodge your return, all your combined income eventually shows as one figure. The tax you've paid through your employer shows as PAYG withholding. If you're also paying PAYG instalments (quarterly tax on your business and/or investment income), those tax credits would be included too.
Your notice of assessment breaks down your tax return. It shows your taxable income, tax payable on that income, then tax credits and rebates or offsets you get. The tax credits from your employer will show under PAYG withholding.
To give an example, say you're paid $40,000 from your job, and $25,000 from your business. Your employer withheld $5,000 from your salary. Your notice of assessment would look something like this as an Australian resident:
Taxable income: $65,000
Tax on your taxable income: $11,592
Less Pay as you go (PAYG) credits and other entitlements
(eg tax deducted by your employer or bank): $5000
Result of this notice: $6,592 DR (owing).
Keep in mind this example doesn't include Medicare levy, rebates, or offsets you might be eligible for.
You can read about your notice of assessment on our website.
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