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katie_t(Newbie)Newbie
22 July 2023

Hi,


I'm trying to find out why I pay so much tax compared to my colleagues on the same income. Just for reference I am paying 46% tax (~$100k gross) based on my most recent payment summary for the last financial year. I have checked my Tax file declaration and i am an Australian resident for tax purposes. When i look at tax calculators it seems as though i am paying the marginal tax rate instead of the average tax rate compared to my colleagues? What is the difference between the two and is there something i have ticked/not ticked on my TFN declaration to cause this? I do get a tax refund at the EOFY that brings it down to roughly 36% but it still seems excessive. Should i seek advice from an accountant?


Thanks

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1,682 views
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Most helpful reply

Glenn4802(Devotee)Devotee
22 July 2023

You will need to complete a TFN Declaration to have a lower amount of tax deducted from you pay. You may have done this already, but the form may have been missing some information.


When completing the form make sure that you have included your TFN, advise that you are an Australian resident and answer "Yes" to question 9 " Do you want to claim the tax-free threshold from this payer?".


All replies

Jdub(Champion)Champion
22 July 2023

Hi @katie_t,


Always good to get advice from a tax professional when in doubt. The amount of tax you pay is related to your income. You also need to be sure to claim the tax free threshold for your primary job.


There could be a number of things that impact how much you need to withhold, so talking to a professional will give you piece of mind that you're doing things by the book.

Most helpful reply

Glenn4802(Devotee)Devotee
22 July 2023

You will need to complete a TFN Declaration to have a lower amount of tax deducted from you pay. You may have done this already, but the form may have been missing some information.


When completing the form make sure that you have included your TFN, advise that you are an Australian resident and answer "Yes" to question 9 " Do you want to claim the tax-free threshold from this payer?".


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