paying too much tax

 Author: PayrollDeanne(Taxicorn)Taxicorn

23 Feb 2023

Hiya @Manishimwe

The rate of tax is based upon a number of factors:

1. Frequency of your pay - eg: weekly, fortnightly, monthly. See relevant tax tables
2. Tax Residency - eg: Australian or Foreign Resident
3. TFN Declaration - eg: the details you provided to your employer to indicate if you are claiming the tax free threshold or not. You may also provide other withholding declarations that indicate you may have a Study and Training Support Loan (higher tax to repay debt kicks in when income thresholds are reached) or claim tax offsets.
4. Medicare Levy Variations - eg: if your personal circumstances warrant a change to the Medicare levy, the amount withheld may vary when income thresholds are reached/exceeded.
5. Specific Professions - eg: there are some specific professions that have their own tax table. If you have changed job within your payer to those specific provessions, a new tax table may apply.
6. Timing of Payment - eg: there are some payments that are taxed differently if they are paid in arrears or if they are a specific type of payment, such as bonuses, where the tax is marginalised.

Sorry, I hope that doesn't scare you! 😟 Tax isn't so simple as a "one size fits all" tax rate 🥴

But the reality is, you need to ask your employer why the tax has changed, as they will be privy to the items I've identified above. There may be some reference on your payslip that may assist with some of those items.

Only your employer can answer your question, no one else.

Deanne