ATO Community

What is a financial year?

Newbie

Views 737

Replies 3

The last fortnight of the 19-20 was paid on the 1st July. My employer is trying to convince me that because it was paid on the 1st it goes towards the 20-21 financial year. But here is the kicker, not all the amounts, only 3 days (which were first 3 days of the second week Mon, Tues, Weds in the fortnight and not the Thurs or Fri). The PAYG tax went into the 20-21 year, but not my HECS tax.
Am I making sense?
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee

Replies 2

@AbbyC 

 

The financial year is a 12 month time period that is used for tax purposes, and for us here in Australia the financial year starts on on 1 July and ends on 30 June. 

 

I think I understand what your saying, but your employer is correct .... if they pay anyone on or after the 1st July then it all goes in that financial year which is the 2021 financial year in this case ... 

 

As the HECS was repaid in the 2020 financial year then it stays in that financial year... 

3 REPLIES 3

Most helpful response

Devotee

Replies 2

@AbbyC 

 

The financial year is a 12 month time period that is used for tax purposes, and for us here in Australia the financial year starts on on 1 July and ends on 30 June. 

 

I think I understand what your saying, but your employer is correct .... if they pay anyone on or after the 1st July then it all goes in that financial year which is the 2021 financial year in this case ... 

 

As the HECS was repaid in the 2020 financial year then it stays in that financial year... 

Newbie

Replies 1

Thanks for the reply,
OK - I would understand if all of my pay got recorded in the one spot.
I get paid fortnightly. In my fortnight I work 10 days. I am full time.
The fortnight period I do not understand is for the 15/6 to the 28/6. This whole period was paid on the 1 July.
But pay for the 15, 16, 17, 18, 19, 25 and 26 was recorded in the 19/20 financial year.
Pay for the 22, 23, 24 has been recorded in the 20/21 financial year. I took carers leave on these days.
If all of this fortnight was paid on the 1 July why has it been separated across financial years?
How come they get to decide what days go where?

Devotee Registered Tax Practitioner

Replies 0

But pay for the 15, 16, 17, 18, 19, 25 and 26 was recorded in the 19/20 financial year.
Pay for the 22, 23, 24 has been recorded in the 20/21 financial year.

 

Not sure what you mean by "recorded"  and the relevance.

 

Paid in July means taxed in July, even if back pay from 2 years ago.