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Re: student loan

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I'm new

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I currently have about 72k of student loan, however I began paying it off since this year march, by ticking yes in Q 10 of the Tax Delcartion form. However I have noticed that each time I lodge my tax return I seem to always OWE money to the ATO, why could this be? I am always OWING them, is this due to my student loan? 

 

Secondly, what dose the Frienge benefit ? 

and lastly, how dose Salry Scarificing at work affect workers during end of finacial year, dose it put them in a position where they are likely to owe money to the ATO? I have called ATO many times to have this explained in detail and clear to me, mhowever non one has been able to do that, so I hope I eventually get the answer here!

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ATO Certified

Devotee

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I am going to take a stab in the dark here and make a few assumptions.

 

Is fringe benefits a significant part of your income? This may affect how much tax is withheld from your pay. My spouse works for a charity where a significant part of her income was in the form of fringe benefits. Fringe benefits while they were not included in taxable income and for them not taxed, they are included in the calculation for working out how much hecs you are required to pay each year.

 

The unfortunate thing is this is not included in the tax withheld from your pay. That only looks at your taxable pay and exluceds the fringe benefits. So in effect not enough tax is being withheld. You can adjust your payg to have more taken otu to cover this https://www.ato.gov.au/Individuals/Working/In-detail/PAYG-withholding/PAYG-withholding---varying-you...

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Taxicorn

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No idea why you should 'Owe' money.

If you ticked Yes at question 10 then work should be withholding extra money based on your projected yearly earnings and that should cover it.

 

Perhaps you are working substantially more than what was 'projected' and work hasn't taken out enough?

 

Or you are earning 'other income' that hasn't been taxed?

 

"Secondly, what dose the Frienge benefit ? "  - not sure what you mean here?

 

Are you asking "what is a Fringe Benefit and how does it work?"

 

And finally " how dose Salry Scarificing at work affect workers during end of finacial year, dose it put them in a position where they are likely to owe money to the ATO?"

 

Salary sacrificing will save you additional tax as you reduce your taxable income and pay less tax.

 

Salary Sacrificing amounts count towards a Help debt repayment threshold. 

 

 

 

Highlighted

Best answer

ATO Certified

Devotee

Replies 0

I am going to take a stab in the dark here and make a few assumptions.

 

Is fringe benefits a significant part of your income? This may affect how much tax is withheld from your pay. My spouse works for a charity where a significant part of her income was in the form of fringe benefits. Fringe benefits while they were not included in taxable income and for them not taxed, they are included in the calculation for working out how much hecs you are required to pay each year.

 

The unfortunate thing is this is not included in the tax withheld from your pay. That only looks at your taxable pay and exluceds the fringe benefits. So in effect not enough tax is being withheld. You can adjust your payg to have more taken otu to cover this https://www.ato.gov.au/Individuals/Working/In-detail/PAYG-withholding/PAYG-withholding---varying-you...