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Re: Starting a New Job in the Middle of Tax Year

Newbie

Views 285

Replies 2

Hello,

 

As a fresh immigrant, I started my first job ever in Australia in the middle of the current tax year for an annual salary of $100.000. As I received my first fortnightly payment ($2884.15) I saw my after-tax salary is calculated as if I had started at the beginning of the tax year, hence my income would spill into the %32.5 tax band (Which will not since there are only a few months till the end of the tax year). Has my company made a calculation error, am I going to receive the taxes that are paid in my tax return or am I missing something?

 

Regards,

Abasi

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 1

Hi @wederama,

 

When an employer taxes your income they will refer to the relevant tax tables based on your income for that pay period whether it be weekly, fortnightly or monthly. There are a few facts that determine at what rate they will tax you at. 

 

A few of these deciding factors are, If you are claiming the tax-free threshold or a Working Holiday Maker. I will link information bellow for these categories.

 

Any excess amounts of withholding tax deducted from your pay throughout the financial year, will be refunded to you when you lodge your Income tax return at the end of the financial year.

 

Links

tax tables

Working Holiday Maker

2 REPLIES 2

Most helpful response

ATO Community Support

Replies 1

Hi @wederama,

 

When an employer taxes your income they will refer to the relevant tax tables based on your income for that pay period whether it be weekly, fortnightly or monthly. There are a few facts that determine at what rate they will tax you at. 

 

A few of these deciding factors are, If you are claiming the tax-free threshold or a Working Holiday Maker. I will link information bellow for these categories.

 

Any excess amounts of withholding tax deducted from your pay throughout the financial year, will be refunded to you when you lodge your Income tax return at the end of the financial year.

 

Links

tax tables

Working Holiday Maker

Newbie

Replies 0

@RenATO Thanks, when I enter the respective amounts into the Tax Tables, the resulting figure complies with the amount I received from my company. So, there's no calculation error and seems like the extra amount will be paid back to me as a part of my tax return.