Salary Problem - Amount Of Tax Deducted

Lbaldur on 27/09/2016 - 17:01
Last edited 27/09/2016 - 17:28 by 1 other user

Hello People, I'm not sure whether this is the correct thread but i am giving it a go.

I work casually. I work for 38 hours a fortnight. First my tax cut was almost 40 per cent, because in the TFN declaration form, I answered no to the question "are you a resident for tax purposes". Then I noticed that rectified the form and submitted it to my employer.

2 weeks ago tax rate was 10 percent on my payslip. Today i got my latest payslip and it was 28 percent cut out of my gross salary. Like I said, my amount of working hours don't change, it is fixed.

But what happened again I didn't understand. I can't ask the officer until next week as she works a couple of days a week. Do I need to call the taxation office now? How can I get this problem solved?

Thanks in advance for your answers.

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  djsweet on 27/09/2016 - 17:33

  +5

  Your employer calculates your tax and pays it based on the information you provide. To find out what is going on you will need to talk to your employer not the ATO.
  I'm not sure what you can do in the interim, but at the end of the financial year it will all be sorted out by your tax return.

  • 

    baldur on 27/09/2016 - 18:07

    yes you are right. i researched a bit. i think i am not losing anything. because i chose no tax free threshold choice in the tfn declaration form. i will change it to tax free threshold.

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  loke on 27/09/2016 - 17:42

  +3

  Have a look at a copy of the fortnightly tax tables :

  https://www.ato.gov.au/rates/fortnightly-tax-table/

  https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/F… USE THE PDF

  The PDF should be the correct copy (the webpage link is for 1 Oct 2016 onwards), make sure the correct amount (ideally you should be using the real numbers and not a %) is withheld if their system isn't automated.

  Was the 10% for the pay period due to an adjustment for the previously withheld 40%?

  • 

    baldur on 27/09/2016 - 18:10

    i think it most likely was. because she said she would adjust in the next salary payment. but the thing is what i chose in the tfn declaration. so i will change it to the tax free threshold.

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  CheapskateQueen on 27/09/2016 - 20:33

  Are you sure you're a non resident for tax purposes? If you're a non resident you don't get the tax free threshold

  • 

    baldur on 27/09/2016 - 23:46

    i am an international student and it is considered that i am resident for tax purposes. its not about being permanent resident.

    • 

      CheapskateQueen on 28/09/2016 - 07:02

      Sorry i misread what you said. Didn't realise you fixed your form

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  djmatt24 on 27/09/2016 - 21:23

  +2

  Sounds like you need to pay closer attention to forms you fill out!

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  Stewardo on 27/09/2016 - 23:46

  It will all be resolved at the end of financial year.

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  dasher86 on 28/09/2016 - 10:18

  Are you being paid a wage or a salary?
  Casually you should be paid a wage.
  As an international student how many hours a week are you allowed to work?

  • 

    baldur on 01/10/2016 - 13:38

    20 hours a week during course periods, if it is holiday periods, we are allowed to work full time.
    as this is my first job with taxes, I don't know about the difference between salary and wage. I signed a contract which says casual employment when I started.

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  foxmulder on 28/09/2016 - 17:29

  +1

  Weekly or fortnightly tax deduction is not based on whether you are still under 18000 income a year. It is calculated on weekly or fortnightly based on the payment you received on that week. The more money you receive in one period the more tax you received regardless you still under that free tax threshold. For example if you earn less than $200 you will notice that you almost pay nothing on tax as it is assume annually you get 200x 52 weeks= 10k thus way below tax free threshold. However if you earned say 1100 a week you get around $250 in tax as that 1100 assume you get 1100 x 52= 57000. You get money back anyway on tax return if your total income is below the tax free bracket.