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Ex partner paying too much tax

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Newbie

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Hi,

My ex partner and I are trying to do a property settlement and also child support. He is currently paying more tax than is required as a way to receive a lump sum after EOFY which will fall after our property settlement. This also lowers his income which will affect the settlement and child support. His employer had stated (in writing) that they were willing to help him reduce his income on paper.

Is this against the law or can he breached in any way.
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ATO Certified Response

Community Moderator

Replies 1

Hi @Emma12345

 

Welcome to our Community.

 

@macfanboy is correct. Your former partner is able to increase the amount of tax withheld from their salary and wages. They can arrange this by entering into an agreement with their employer to increase the tax rate or the amount of withholding.

 

For more information about this, you can check out the varying your PAYG withholding page on our website.

 

The link that @macfanboy has provided will take you to a page on the Department of Human Services website. It explains how child support payments are based on adjusted taxable income for the last relevant year.

 

Adjusted taxable income includes a number of income types including taxable income. You can find out more about what is adjusted taxable income on the Department of Human Services website.

 

Your partner's taxable income is their gross (before tax) income minus any deductions that they claim. As @macfanboy has said, any tax that is withheld from their salary and wages isn't a deduction and doesn't decrease their taxable income.

 

You can check out our website for more information about income and deductions.

 

We recommend that you seek legal advice about whether the increased tax withholding will have any impact on the property settlement.

 

Hope this helps.

 

Thanks,

 

ChrisR

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ATO Certified Response

Taxicorn

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You pay tax on your total taxable income, if you have paid more than required then yes you will receive it back.

 

However, paying more tax will not affect the total taxable income for the Financial year.

 

Settlement & Child support payment should be based on the total taxable income for the financial year, not net income each pay period else everybody would do that.

 

 

Most helpful response

ATO Certified Response

Community Moderator

Replies 1

Hi @Emma12345

 

Welcome to our Community.

 

@macfanboy is correct. Your former partner is able to increase the amount of tax withheld from their salary and wages. They can arrange this by entering into an agreement with their employer to increase the tax rate or the amount of withholding.

 

For more information about this, you can check out the varying your PAYG withholding page on our website.

 

The link that @macfanboy has provided will take you to a page on the Department of Human Services website. It explains how child support payments are based on adjusted taxable income for the last relevant year.

 

Adjusted taxable income includes a number of income types including taxable income. You can find out more about what is adjusted taxable income on the Department of Human Services website.

 

Your partner's taxable income is their gross (before tax) income minus any deductions that they claim. As @macfanboy has said, any tax that is withheld from their salary and wages isn't a deduction and doesn't decrease their taxable income.

 

You can check out our website for more information about income and deductions.

 

We recommend that you seek legal advice about whether the increased tax withholding will have any impact on the property settlement.

 

Hope this helps.

 

Thanks,

 

ChrisR

I'm new

Replies 0


@ChrisATO wrote:

Hi @Emma12345

 

Welcome to our Community.

 

@macfanboyis correct. Your former partner is able to increase the amount of tax withheld from their salary and wages. They can arrange this by entering into an agreement with their employer to increase the tax rate or the amount of withholding.

 

For more information about this, you can check out the varying your PAYG withholding page on our website.

 

The link that @macfanboy has provided will take you to a page on the Department of Human Services website. It explains how child support payments are based on adjusted taxable income for the last relevant year.

 

Adjusted taxable income includes a number of income types including taxable income. You can find out more about what is adjusted taxable income on the Department of Human Services website. google street view

 

Your partner's taxable income is their gross (before tax) income minus any deductions that they claim. As @macfanboy has said, any tax that is withheld from their salary and wages isn't a deduction and doesn't decrease their taxable income.

 

You can check out our website for more information about income and deductions.

 

We recommend that you seek legal advice about whether the increased tax withholding will have any impact on the property settlement.

 

Hope this helps.

 

Thanks,

 

ChrisR


Thanks for the thorough explanations, I appreciate it.