How to Report JobSeeker Income if I Haven't Received Payment from Employer?

babylu66 on 23/10/2020 - 10:44

Hi all,

I feel it is a tricky one, wondering if anyone has experience in the past could explain it to me.

I got the job offer not long ago, and the employer asked me to start immediately, which was this Tuesday. The contract has not been generated yet, since he has to sort out with his accountant for this ghost firm (never hired one person prior to me). I am not worried he will not pay me or doge the contract, I have worked for him before, he is nice just very weak at the accounting side…

I have to report my income very fortnight (which I have to do today), and he pays monthly, which means I will not get paid until next month. How do I report my income to Centrelink? Do I say 0 working hour 0 income, or 20 hours no income, or 20 hours with whatever I guess I will be paid… I am very confused, and I asked my employment consultant, don't think she understands my situation…

Thank you guys!

Education & Work JobSeeker

Comments

  • jimbobaus on 23/10/2020 - 10:45

    You have to declare what you have earned even if you have not been paid yet.

    So if for the past 14 days you earned $1500 before tax, you declare that.
    You can use the calculator built in to the lodgement system. Enter your hourly rate and how many hours worked in the fortnight.

    remember its BEFORE tax

    • babylu66 on 23/10/2020 - 10:48
      +1

      I see, that's sad.

      Thank you for clarifying so quickly! :0 30 seconds after posting lol

      • jimbobaus on 23/10/2020 - 10:50
        +1

        yeah it can suck when you are on Monthly salary, but centrelink works to a 14 day period.

        If you were to put 0 hours you would risk a penalty as due to Single Touch Payroll centrelink actually knows what you earn even before you even lodge.
        They will see hours worked and if these do not match you risk a getting a penalty or having to pay funds back.

        Also remember that your ENTIRE jobseeker payment is taxable income now you are also earning other income.
        I recommend requesting a tax deduction from your JS payment ($10 is usually enough) just to ensure you do not end up with a tax liability come tax time.

        if you ONLY income was JS its tax free
        when you also earn income from working the JS income is taken into account in your yearly earnings come tax time.

        • babylu66 on 23/10/2020 - 10:52

          Well said.

          I have reported this morning without thinking. I will need to update this report now!!

          • jimbobaus on 23/10/2020 - 10:53
            +1

            @babylu66: you can call them and request an adjustment.
            explain the situation and they will fix it for you.

            get Netflix running or something as you can anticipate being on hold for a while.

            • babylu66 on 23/10/2020 - 10:54

              @jimbobaus: Thank you, such an expert :D

              • jimbobaus on 23/10/2020 - 11:00
                +2

                @babylu66: Funnily.. from December 7th they are changing the process.

                From Dec 7th you only REPORT money PAID TO YOU during your 14 day reporting period.

                So from then if you are paid monthly you would declare like this (lets say 20 hours a fortnight, $1500 earned before tax)

                fortnight 1: 20 hours worked $0 Paid
                Fortnight 2: 20 hours worked $3000 paid

                So you second fortnight would be your Pay fortnight and this is when you would declare.
                This would mean for example lets say you were entitled to $300 from centrelink based on your income.

                You would get:
                FN 1: $300
                FN2: $0.00 (you are now -$300 due to your declaration of income)
                FN3: $0.00 (you are enitled to $300 but are over $300 as FN 1 was adjusted due to your declared income in FN2)

  • peterpeterpumpkin on 23/10/2020 - 11:06
    +1

    I'm not on JobSeeker, but what confuses me every tax time is the shift in financial years:
    when you work in June and get paid in July, pushing the income into the next financial year;
    you're a landlord and you receive the rent late pushing it into the next year;
    you can chose to pre-pay interest and other expenses up to 12 months on rental properties;
    lump sum payments falling in the next financial year, but then if over 10% of income can be subject to "lump sum payments in arrears tax offsets"
    etc

    Just when I think I know how to calculate things I get confused again.

    • Seraphin7 on 23/10/2020 - 11:50
      +2

      Yep, the greatest single challenge with the tax laws is that there are simply so many twists and roundabouts it is practically impossible to get it right.

      So far as by personal, investment and small business income is concerned, I've always worked on a simply cash basis. Earnings is literally the cash I've received, expenses is literally the cash I've paid out.

      To be fair to the ATO, I think they've actually got pretty good at not jumping on top of people because of "honest mistakes" or anomalies such as that you're referring to. That said, the last week of June is always a fraught time trying to balance exactly what's come in with exactly what you want to go out.

      I've often thought that the tax system would be a lot fairer if it was based on a rolling period of, say, 3 or 5 years. It would allow you to "average out" good and bad years and would actually do away with some of the carry on that occurs every June. This would actually go a long way towards assisting in the debate around parental leave … if you take a year off and could then average your four years' income across five, the savings would go a long way to paying for costs upon returning to work.

    • spal on 23/10/2020 - 13:00

      All your income from employment is already pre-filled by ATO. For rental income get the agent to give you a statement for the financial year. Just plug those amounts in your tax return.

Login or Join to leave a comment
Login Join