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Tax-free threshold

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I have been at my current job working as a casual for just over six months now. I work night-shift from 10:30pm Sunday night to 6:30am Friday morning and make $1588.02 for a full week. With every single pay I have always been taxed $238, which left me with a net pay of $1350.02. However, this week I have been taxed an incredible $516 which left me with a net pay of $1072.02.

I called Payroll in regards to why I had been taxed so much. The payroll lady told me that I have earned over $35,000 and for the rest of the year I will be getting taxed at the highest rate as I have passed the tax-free threshold. I understand this; But, my question is: Is $516 the right amount of money I am supposed to be getting taxed? My casual co-workers who have been working longer than I have, do not get taxed $516 after passing the tax-free threshold.

One thing to point out; I am a New Zealand citizen and so I hold the Special Category Visa. Thank you in advance.

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ATO Certified

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Hi @PBoyHoneyBadger,

 

Welcome to our Community.

 

The amount of tax that should be withheld depends on the information you have provided when you completed your tax file number (TFN) declaration for the employer, including whether you’ve selected resident or non-resident for tax purposes.


There are tax tables and tax withheld calculators available on our website to assist employers to determine the amount of tax to withhold based on the information you’ve provided, and your pay cycle. These are also very helpful for employees to refer to.

 

It sounds like you are a temporary resident based on the information you provided, you can refer to our website for more information.

 

If you are not sure you can determine if you are an Australian citizen for tax purposes by using our decision tool on our website. If you have used the tool and still can’t determine if you are a resident for tax purposes you can phone us on 13 28 61 Monday to Friday, between 8:00am and 6:00pm to discuss general residency information with a customer service consultant.


If you think you have completed the TFN declaration incorrectly and you want to change the amount of tax your employer is withholding from your pay, you can complete a Withholding declaration.

 
As @macfanboy has advised we will determine if too much tax has been withheld. Once you lodge your tax return we will work out the total tax payable; your notice of assessment will advise if there is an amount to pay or a refund due.


We can only provide general guidance without knowing all the specifics of your situation.


I hope this helps, SueO 

2 REPLIES 2
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Taxicorn

Replies 1

Looks like they have screwed up.

 

When you check tax amount for $1,588.02 at https://www.paycalculator.com.au/ it shows that you have to pay $386 not $238.

However, if you are classified as a non-resident this changes to $516. (try ticking the box).

 

You shouldn't be classified as a non-resident as per Tax Determination 2012/18

but as a Temporary Resident and as such Your Australian Wages & Salary should be taxed as a Resident i.e. $386, not $238 or $516.

 

When you come to Lodge your Tax Return, make sure that you indicate that you are a Temporary Resident and not a non-resident.  You should receive any excess tax back.

 

Also, make sure that you request to fill in another Tax File Declaration form indicating that you are a resident for tax purposes.

 

 

 

Highlighted

Best answer

ATO Certified

Community Support

Replies 0


Hi @PBoyHoneyBadger,

 

Welcome to our Community.

 

The amount of tax that should be withheld depends on the information you have provided when you completed your tax file number (TFN) declaration for the employer, including whether you’ve selected resident or non-resident for tax purposes.


There are tax tables and tax withheld calculators available on our website to assist employers to determine the amount of tax to withhold based on the information you’ve provided, and your pay cycle. These are also very helpful for employees to refer to.

 

It sounds like you are a temporary resident based on the information you provided, you can refer to our website for more information.

 

If you are not sure you can determine if you are an Australian citizen for tax purposes by using our decision tool on our website. If you have used the tool and still can’t determine if you are a resident for tax purposes you can phone us on 13 28 61 Monday to Friday, between 8:00am and 6:00pm to discuss general residency information with a customer service consultant.


If you think you have completed the TFN declaration incorrectly and you want to change the amount of tax your employer is withholding from your pay, you can complete a Withholding declaration.

 
As @macfanboy has advised we will determine if too much tax has been withheld. Once you lodge your tax return we will work out the total tax payable; your notice of assessment will advise if there is an amount to pay or a refund due.


We can only provide general guidance without knowing all the specifics of your situation.


I hope this helps, SueO