My taxable income for FY18 was $164,457, and I paid $66,743 in tax. According to the ATO simple tax calculator (https://www.ato.gov.au/calculators-and-tools/simple-tax-calc…), I should have only paid $48,481 in tax.
But when I did my tax return, the estimated return was under $2k.
I had private health insurance all year, so no medicare levy surcharge.
What am I missing?
Gonna say yes to HECS debt.
Payroll Calculator comes to the same figures as the ATO (ie. just under a $2k refund).
https://paycalculator.com.au/#164457|0|2018|9.5|5,250,8,40,50|000100
My taxable income for FY18 was $164,457, and I paid $66,743 in tax
Nice - humblebrag + fitting username combo!
Just kidding. HECS? Honestly these things are so individual-specific that I'm not sure we can help you that much. If it differs form previous years' returns, check those and compare item by item to spot any discrepancies.
It won't calculate
Medicare levy
Medicare levy surcharge
Temporary Budget Repair Levy
Working holiday makers' tax obligations
Higher Education Loan Program (HELP)
Trade Support Loan (TSL)
Student Financial Supplement Scheme (SFSS) liabilities you may have.
If you need a detailed calculation, you can use the Income tax estimator.
You might like to to check all the details you have entered.
Yeah that's weird, i earn 200k and only pay 1 dollar in tax.
wait…
You my friend need to see an accountant.
With all your deductions for financial advice from your partner who is a financial planner, combined with your share portfolio those average plebs can't afford, you should be getting a tax credit based on your franking credits
chumlee speaks the truth
Medicare levy
With that income, you could pay an accountant!
yeah was going to say the same thing….sounds like the only thing missing is an accountant.
Sounds like a cheapskate
You filled out the simple one. Try this one: https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=TW…
I thought the same and have similar income - got slugged 3k medicare levy.
got slugged 3k medicare levy.
Everyone gets slugged. Nothing to complain about and it's not like we're funding death and destruction with the levy.
You forget to tick the "Please don't tax me so much" check box. Common mistake.
I think the only thing more OP would've gotten by ticking that would be a hearty "HAHAHAHAHAHAHAHA" from the ATO.
These comments about how tax returns are so subjective based on the individual aren't valid because any investments, capital gains/losses etc will be taken into account in the net taxable income figure that OP has provided.
It will be medicare levy which is 2% of your taxable income. This is different from the medicare levy surcharge which is only payable if you don't have appropriate level of hospital insurance, and HECS repayments which at your income level would be 8% of your taxable income. I doubt you're a regular PAYG employee but if you are, you might want to consider getting your employer to deduct both of these items from your pay so you don't get a surprise at year end.
Punch your details into here and it gives a tax payable figure of $64.8k which explains why you got a $2k return on paying $66.8k.
Great, thank you very much for the help and information spiff.
I've got lots to learn.
I'm an accountant (not a tax accountant though) and if you're interested in where your own money goes then I'd encourage you to do the research into the tax rules that affect you, so you don't have to pay an accountant to do it for you. As you said below you're a PAYG employee, so between the ATO website, your payslips/payment summary and added verification from paycalculator.com, it's not too hard to figure out. Being tax deductible isn't an argument to incur a cost that you don't necessarily have to. I would recommend only getting an accountant for:
1) learning purposes so you can understand it and DIY next time
2) point 1) also applies if you have change in circumstances e.g. start earning foreign income
3) you have investments or businesses on the side
4) you have no interest in your own money
What did your accountant say ?
if your making that kind of money you should 100% have an accountant, all charges are 100% tax deductible.
Earns $164,457 and can't even calculate your own tax. EVeryone pays for medicare! Just because you have private health insurance doesn't mean you don't have to pay for our subsidized healthcare system.
lol
Earns $164,457 and can't even calculate your own tax.
Income earned and knowing how to do your taxes do not correlate. There's people who earn a lot of money and know how to do their taxes as well as those who don't. There's people who earn close to no money but know how to do their taxes and there's also those who don't.
EVeryone pays for medicare! Just because you have private health insurance doesn't mean you don't have to pay for our subsidized healthcare system.
He punched his pre-tax income into the Simple Tax Calculator on the ATO website which does not include medicare, medicare levy surcharge and potentially HECS. Very easy to make this error.
I don't think it's fair to be too critical of OP. His calculations may be simple and missed bits and pieces but at least he's asking for help.
OP you need to factor in tax for medicare, HECS/HELP and SFSS if you have any. Your taxable income also includes any investment income, bank interest etc which you need to factor in on top of the income from your job, which may be why you're required to pay more tax.
Income earned and knowing how to do your taxes do not correlate.
That's why this world is doomed. Paying too much to people who can't count.
A person earning 164k a year could be working in an industry that doesn't need to know how to count like politics or poledancing. And even if you know how to count, taxes is much more complicated than that.
taxes is much more complicated than that.
True. I got knocked back for an RPG I tried to claim through tax. They said they want a receipt but I said they don't give receipts at Khyber Pass.
@fossilfuel: Thanks mate. First time this year I've tried to do my tax return by myself. Numbers and tax laws are definitely not my strong suit.
Not sure why people like smuggler seem so salty. I'm not even in the top income bracket, and there are lots of OzBargainers that are (e.g. the web developer AMA the other day).
@Haters.Inc:
Given the questions you are raising here (eg. am I paying the right amount/getting the right deductions, etc), you should be seriously considering a tax accountant (if in doubt ask a professional);
On top of that, your income would make the accounts fee a minuscule cost for potentially saving you a lot of either deserved deductions/mistakes risking audits;
In any case you get most of that accounting cost back from the ATO, I know numerous people earning ~1/3 of your income who use a tax accountant to save them money;
However, if they don't save you anything after a couple of rounds, and they don't suggest any improvements to your tax return, they likely aren't worth your time, look for another tax agent the next year.
@krzystoff: Thanks krzystoff. That makes a lot of sense.
I was just being lazy. And my tax affairs are usually quite straightforward. I'm just a regular PAYG worker, no dependents or real investments.
But I will take the advice you (and many others in this thread) recommended and just go see a tax professional from now on.
Cheers!
Medicare levy surcharge is different from the normal Medicare levy.
Those who earn over a certain level of income must pay this surcharge if they don't have an appropriate level of private health insurance (which I do, hence the comment).
See:
https://www.ato.gov.au/individuals/medicare-levy/medicare-le…
You should be happy with $2k tax return. That seem's quite high. if you can send me a few details like name, bank account details and tfn i can prob look into it for you.
everyone pays Medicare surcharge, its 2% of your income. I would be happy getting a return on such a high wage. Normally with that wage, most would have to pay the tax man a bit more.
No not everybody, you are referring to medicare levy which everyone pays 2% however.. if you dont have private health insurance and earn more than 90k single/180k couple then you are liable to pay levy surcharge which is an additional 1-1.5%
Semantics
That is a lot of tax for an ozbargainer.
You should have more say in how your taxes are spent.
I don't mind paying tax. It pays for so many essential services in this country we are lucky to call home. I'm very glad we have things other countries don't, such as decent public schools and Medicare.
I just didn't want to feel like I made a mistake in my return, and overpaid what I was meant to.
Assuming you had hospital cover all year for all dependents (and not just extras), common reasons would be:
- medicare levy not included in the calculator
- HELP/SFSS debt
- other ATO debts
- other government dept debts
I have always completed my tax returns myself, but have sometimes resorted to calling the Tax Office for advice. Have always found them to be very helpful and obliging. If you cannot find an obvious error I would ring them to ask if they can have a quick review, perhaps even make an appointment with them specifically for this purpose. Take all relevant documentation and id's (this and previous returns) with you of course. People make mistakes. May be an idea if you research whether your company offers salary sacrificing too.
What are your not so "real investments"?
You either have investments or you don't.
What are your not so "real investments"?
10,000 Eneloops.
gotta tax those haters hard.
residency question wrong? hecs/help debt?