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Re: When is the base tax paid?

Initiate

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Dear ATO,

I earn approximately $60, 000 annually, therefore my marginal tax rate is at 32.5% and I pay a base tax of $3, 572. When is this base tax of $3, 572 paid? Is it being added to my tax bill at the end of the year is it absorbed into my payslips as $68 weekly? Also, if I were in a higher tax bracket, would I only pay the base tax for my tax bracket or the ones below me also?

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Taxicorn

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@camsook 

 

I think you mean by 'base' rate

https://www.ato.gov.au/rates/individual-income-tax-rates/

 

This 'base' rate is incorporated in your tax that you pay each pay period.

 

This 'base' rate is simply a way to calculate how much tax you pay and you only pay one of them depending on what bracket you are on.

 

On $60,000 per year, you should be paying $9,701.81 Tax :

 

$5,902 + 19c x $19,999 ($60,000 - $45,001) = $9,701

 

and $1,200 in medicare:

$60,000x 2% = $1,200

 

3 REPLIES 3

Most helpful response

Taxicorn

Replies 2

@camsook 

 

I think you mean by 'base' rate

https://www.ato.gov.au/rates/individual-income-tax-rates/

 

This 'base' rate is incorporated in your tax that you pay each pay period.

 

This 'base' rate is simply a way to calculate how much tax you pay and you only pay one of them depending on what bracket you are on.

 

On $60,000 per year, you should be paying $9,701.81 Tax :

 

$5,902 + 19c x $19,999 ($60,000 - $45,001) = $9,701

 

and $1,200 in medicare:

$60,000x 2% = $1,200

 

Initiate

Replies 1

I am only referring to the figure of $5, 902. When is that $5, 902 paid? 

Taxicorn

Replies 0

@camsook 

 

It is included in your tax that you pay each pay period.

 

They estimate your eventual tax bill and divide it by the number of pay periods that you have.