I need to know how much tax I have to pay on my pension as I work 40 weeks per year as well.
I report my earnings every fortnight to Centrelink ($1070 approx per f/n) and pension is around $800 per f/n after I declare my income. I didn't know I had to pay tax on my pension last financial year and got stung with a bill.
Hi @JMPC,
When you receive both employment income and a pension, your total income is considered for tax purposes.
Both your employment income (approximately $27,820 per year) and pension payments (around $20,800 per year) are counted as part of your taxable income. While the first $18,200 of your total annual income is tax-free (the tax-free threshold), any amount above this is taxed at the applicable rate.
Since your combined annual income looks to be around $48,620, this puts you well above the tax-free threshold, which is likely why you received a tax debt last year.
To avoid another unexpected debt, you have several options:
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