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purpletrees(Initiate)Initiate
8 Oct 2024

Hi,

I am 41 years old. Work full time, no dependents. I took 32k for urgent dental work (this financial year) and cannot get a clear answer anywhere on if I need to be prepared for a large tax bill on the lump sum itself. My income in 84k ( inclusive of Super ) as far as I can tell I will still fall into the same tax bracket even including the Super as part of my income. So I believe my tax rate will be the same as what I am currently being taxed at, but some have said that I will also get hit with an additional tax bill of a % of the 32k. Can any one please help clarify this?

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5 replies
892 views
5 replies

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Most helpful reply

TobyJDodd(Devotee)Registered Tax Professional
8 Oct 2024

Hi @purpletrees


Yes, your lump sum is taxable and will be added to your taxable income and taxed at your marginal rate.


Due to your age, your superfund should have withheld tax from the payment to you.


That tax withheld will be credit and should help offset any tax payable.


Toby



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Most helpful reply

TobyJDodd(Devotee)Registered Tax Professional
8 Oct 2024

Hi @purpletrees


Yes, your lump sum is taxable and will be added to your taxable income and taxed at your marginal rate.


Due to your age, your superfund should have withheld tax from the payment to you.


That tax withheld will be credit and should help offset any tax payable.


Toby



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purpletrees(Initiate)Initiate
8 Oct 2024

Thanks for the reply - I thought they would take out the relevant tax on the lump sum itself but they did not - so in your opinion - I will get an additional tax bill on the amount its self once I lodge tax return (yes I'm understanding that amount will already be included in as part of my salary and will be tax on that accordingly but I will be in the same bracket )Im trying to work out if I will then get a tax bill after I lodge

purpletrees(Initiate)Initiate
9 Oct 2024

Never mind - I logged into my super and they did indeed take out an additional 9k tax so now I'm wondering - if that 9k is included in my taxable income come tax time - if so I do believe this will push me into the next tax bracket

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