Aussies Set to Get $1500 Less Back in Tax Returns This Year

pr0o on 29/06/2023 - 12:49
Last edited 29/06/2023 - 13:25 by 1 other user

Aussies set to get $1500 less back in tax returns this year

With the expiration of the Low to Middle Income Tax Offset, plus a series of new crackdowns announced by the ATO, some Aussies are set to get less back in their tax return this year.

Hey guys,

What tax return can I expect this FY? Made $58k, and paid around $12k of tax. WFH 50% of the time. I know it changes, but can someone give me rough estimate?

How much are you expecting for yourself? Please mention occupation, gross, and withholding tax :D

Financial Tax Return

Comments

  • CrowReally on 29/06/2023 - 12:56
    +13

    I can have a rough go - can you just pop across to this page and put the numbers in and let me know what the answer is?
    https://www.ato.gov.au/Calculators-and-tools/Income-tax-esti…

    • pr0o on 29/06/2023 - 12:57

      It doesn't show for 2022-2023 :(

      • CrowReally on 29/06/2023 - 12:58
        +11

        I have a great mathematical trick that allows you to do the calculation that includes a $1,500 offset but then convert it to a calculation that doesn't include the $1,500 offset.

        If your calculator has a minus and plus button and the 1, 5 and 0 keys I think we can workshop a good guess.

        • pr0o on 29/06/2023 - 12:59
          +1

          i will keep you updated with my findings

        • pr0o on 29/06/2023 - 13:02
          +1

          it says $5745 so $5745 - $1500 = $4245

          is that what you meant?

          • CrowReally on 29/06/2023 - 13:04
            +2

            @pr0o: Sort of. Is it saying $5,745 payable or $5,745 refundable? If it's refundable yeah, you've made a good estimate of what your tax refund will be.

          • brendanm on 29/06/2023 - 16:54

            @pr0o: How did you come to the $5800 amount? Between what you have paid, and what you should pay, I got around a grand.

        • GheeButtersnaps on 30/06/2023 - 10:27
          +2

          My calculator only has one "0" key, but I need two to enter the number "$1,500". 🤷‍♂️

          • CrowReally on 30/06/2023 - 10:43
            +3

            @GheeButtersnaps: Buy a second calculator and then you'll have two 0 buttons.

            Today is the last day of the financial year, make sure you buy it today and keep the receipt for a 2022-2023 tax deduction!!!

  • Chandler on 29/06/2023 - 13:04
    +1

    I know it changes, but can someone give me rough estimate?

    Pretty sure you can find tax calculators online, which say you should have paid $9,317 in tax. So you should get back $3k + whatever deductions/offsets you get for WFH.

    #notfinancialadvise

    • freefall101 on 29/06/2023 - 15:47
      +3

      Medicare levy is payable, so about $10,500.

  • Drakesy on 29/06/2023 - 13:04
    +11

    Laughs in highest tax bracket.

    But yeah whilst big businesses rake in massive profits, anyone with a debt is getting shafted right now.
    Boomers are laughing all the way to the bank whilst they buy up stressed properties.
    Oh and don't forget the lowering of tax for the top 10% - classic

    Paycalculator.com.au is your best bet.

    • xuqi on 29/06/2023 - 14:19
      +5

      Can't wait for the tax cut to kick-in…..finally…

      • Sal in SA on 30/06/2023 - 10:20

        Will be nice, not life changing but nice.

    • moar bargains on 30/06/2023 - 13:30
      +10

      Boomers are laughing all the way to the bank whilst they buy up stressed properties.

      Boomers:
      - get free University
      - Graduating/starting work in the best economic conditions the world has ever seen with 40+years of declining interest rates and global economic liberalism leading to huge prosperity
      - Form a big enough voting bloc that governments give them negative gearing and franking tax credit refunds
      - Highest rates of home ownership in Australia
      - Use super to massively reduce their tax
      - Build massive wealth just by virtue of having bought a house
      - Potentially about to get a huge funding boost for their aged care, courtesy of those who don't yet have the luxury of retiring, and are simultaneously getting slammed with the highest inflation in 30 years, leading to massive rises in mortgage costs, falling real wages, rising education debt and enormous migration influx into the worst housing crisis in living memory

      Also boomers: BuT wE hAd 20 pEr CeNt InTeReSt RaTeS!!! (For a relatively short time, on a property worth 3-4 times your annual salary rather than 14 times, while your wage was also increasing 15% a year)

      • Drakesy on 30/06/2023 - 14:42
        +2

        Summed up beautifully.

      • garddn on 30/06/2023 - 16:39
        -5

        Don't fall for the politics of envy. Times change, Don't be a victim.

        • moar bargains on 30/06/2023 - 16:56
          +4

          I can't afford to be a victim. Boomers have driven the price up too much

          • garddn on 01/07/2023 - 09:14

            @moar bargains: Might not be able to afford to be one but you sound like one.
            I'm not a boomer, i don't wallow in victimhood. I make the most of what i have got.
            Don't fall for the politics of envy.

            • moar bargains on 02/07/2023 - 14:32
              -1

              @garddn:

              Don't fall for the politics of envy.

              The problem with politics these days is there are too many other emotions clouding things. I say it's time to Make Envy Great Again!

              • garddn on 05/07/2023 - 19:31

                @moar bargains: Make merit and hard work great again

                • moar bargains on 07/07/2023 - 10:19
                  +1

                  @garddn: The problem with hard work is that it's too difficult. It's much easier to pretend to be someone on the internet.

      • BigBirdy on 30/06/2023 - 21:13
        -4

        Hmm, this boomer graduated from uni into a recession (1982-83). Eventually got a crappy job, stepped up thru a few other jobs, had kids and got a huge mortgage. Then came another recession in 1991-92, causing a 20% drop in property prices while mortgage rates were 17%.
        How many recessions have you had to deal with?

        But yeah, I agree with most of the rest of your rant.

        Worst thing is the structural problems (aggravated by covid assistance) caused by having so much wealth in the hands of asset owners, resulting in many of them choosing to no longer work, and putting the tax burden on those left relying on paid work. ie the working poor are funding the services for the wealthy, self-funded, often relatively young retirees, as well as keeping the economy running 😃

  • toniyellow on 29/06/2023 - 13:07
    +7

    https://paycalculator.com.au/ is pretty thorough

    • Cabrinha on 29/06/2023 - 13:09

      Was just about to say this

  • onetwothreefour on 29/06/2023 - 13:42

    You guys get $1500 back? I usually only get a couple of hundred.

    • Almost Banned on 29/06/2023 - 14:25

      Ever hear of a charitble donation???

    • Jimothy Wongingtons on 29/06/2023 - 14:33
      +3

      havent had a positive return in years..stupid younger me and hecs debt

      • onetwothreefour on 29/06/2023 - 15:38

        I don't have a hecs debt because I didn't go to uni, I guess that makes me the stupid one?

    • coffeeinmyveins on 29/06/2023 - 15:00
      +1

      I always owe few thousand…

    • Sal in SA on 30/06/2023 - 10:21

      closer to 5k more than not.

  • juzza87 on 29/06/2023 - 13:45
    +7

    In the most perfect scenario you should get back $0 and owe them $0, they're literally holding onto money you're entitled to and earning interest off it for 364 days a year.

    • GG57 on 29/06/2023 - 13:50
      +1

      Even if that were true, it wouldn't be for 364 days a year as the tax withheld by employers isn't all paid to the ATO at the start of the year.

    • azngamer on 29/06/2023 - 14:08
      +6

      Isn't the most perfect scenario have no money paid to ATO thoughtout the financial year, place your money in an offset and only pay for your tax March the following year?

      • DiscountForThee on 29/06/2023 - 15:02

        Tax noob here - is that something that all business have to offer? Or is it up to their choice whether they allow something like that?

        Would you just opt out of PAYG and ask them for the full pay every week?

        • azngamer on 29/06/2023 - 15:11
          +1

          Sorry, I've not actually done it and just wondered why I have never looked into it.

          CrowReally provided a link below. At work now so I can't go into detail.

          But be warned that you would really need to set the money aside and not accidentally spend it

        • CheapskateQueen on 29/06/2023 - 21:28

          lol no

      • BigBirdy on 30/06/2023 - 08:24
        +1

        From the ATO

        What happens if you underestimate
        When you vary your PAYG instalments, it is important to not underestimate your instalment amount or rate.
        If you underestimate, you could be left with a substantial tax bill when you lodge your tax return at the end of the year.
        Also, when we receive your tax return, we compare your actual instalments to the total tax payable on your instalment income for the income year.
        If your varied instalments are less than 85% of your total tax payable, you may have to pay a general interest charge on the difference, in addition to paying the shortfall. Depending on the circumstances there may also be penalties.
        If you are not sure, it is best to not vary your instalments. Any overpaid instalments will be refunded to you after you lodge your tax return.

        • Mad Max on 01/07/2023 - 09:06

          So when they take more than due from you they just give you a refund after you lodge a tax return. And you are very happy with that.
          When you give them less than due they want the difference AND they charge you interest on the difference…

          • BigBirdy on 01/07/2023 - 09:28
            -1

            @Mad Max:

            They take

            Don't you or your employer calculate what you owe the ATO, then pay that?

            And you are very happy with that.

            Say what?

    • Drakesy on 29/06/2023 - 14:28

      I do like the idea of my tax paying off my tax.
      Surely if small businesses can do it we should be allowed to elect to have the gross pay straight into our account.

      • CrowReally on 29/06/2023 - 14:50

        Yeah, I think there's a form for that: https://www.ato.gov.au/Forms/PAYG-withholding-variation-appl…

        • Drakesy on 29/06/2023 - 15:23

          Oooh this looks tempting, do you know if there's rules restricting people from taking home their gross pay?

          • CrowReally on 29/06/2023 - 15:32

            @Drakesy: No idea, I expect there'd be some (or at least incredibly stiff penalties for people who did it and then "forgot" to save up for tax time).

          • CheapskateQueen on 29/06/2023 - 21:35
            +2

            @Drakesy: you can't just take home your full pay. the whole system is built on PAYGW and they're literally focusing on protecting PAGW more than ever after the recent major tax fraud based on PAGW.

            the variation form will only allow you to do a minor adjustment to account for less taxable income than your PAGW is based on.

            you can't say "withhold zero". it may be something like "youre withholding $200 per week but because of XYZ you should only withhold $190 to get me as close as possible to $0 debt/refund when i lodge my tax return"

            if it turns out you're way off the first year doing it, they'll be all over it to get you for the next year.

            • SlickMick on 30/06/2023 - 08:45
              +1

              @CheapskateQueen: Yep. My wife had to pay ~$2000 in extra tax last year, and they immediately put her on a PAYG plan: she just got an advice to pay $655 for the quarter Apr-Jun.
              ATO wants tax in advance.

              • Frozensage on 01/07/2023 - 09:16

                @SlickMick: I had to pay 5k a qtr for a whole year before the next tax return to get it taken off. Thank god for Cole’s mc, got all the extra money refunded back in full so I’ll just see it as a 6-7% hai.

    • coffeeinmyveins on 29/06/2023 - 15:01

      Errr not really.

      If you get interest or any gains in the period you owe tax at the end of the fy so you are in fact getting the "interest free loan"

      • Drakesy on 29/06/2023 - 15:23

        Still, if you chuck it in the offset account you're coming out ahead, not that you're technically making money off it.

    • freefall101 on 29/06/2023 - 15:54

      It's possible OPs employer is withholding too much tax. $58k a year, $1,115 a week, should be withholding $202 a week or $10,500 a year. Which is the tax that would be due on that amount.

      Or more likely due to changing jobs, changing salary and all that kind of stuff that makes it move around. With investment income added and deductions taken out, I always tend to come close to breaking even though.

      • pr0o on 29/06/2023 - 16:20

        change of salary, took paycut due to WFH permanently lol

    • garddn on 30/06/2023 - 16:41

      Correct, it's actually a bit like theft. They keep your money that you worked for, depriving you of using that for any potential investment, and then assess you at the end of the financial year.

  • TheRealCher on 29/06/2023 - 16:21
    +1

    Be really careful about the recent changes to work from home claims amd the proof required
    https://www.ato.gov.au/Media-centre/Media-releases/ATO-annou…

  • Sinnerator on 30/06/2023 - 08:01
    -2

    STAGE 3 TAX CUTS coming your way
    So which of you suckers voted for labor or the coalition - YOU GOT WHAT YOU VOTED FOR
    Increased immigration without housing or infrastructure - check
    BS wage increases - check
    Insane levels of inflation - check
    Police murdering 95yr old women - check
    Free BJs for the rich - check

    • pr0o on 30/06/2023 - 08:44

      I got my PR through labor, so thanks to immigration.

    • CrowReally on 30/06/2023 - 09:02
      +1

      So which of you suckers voted for labor or the coalition - YOU GOT WHAT YOU VOTED FOR
      Increased immigration without housing or infrastructure - check
      BS wage increases - check
      Insane levels of inflation - check
      Police murdering 95yr old women - check
      Free BJs for the rich - check

      The irony was both Labor and Coalition actually listed all those things right there on their pamphlets in exactly those words, so we sheeple really should have known better.

      Next time I'm going to do something more socially responsible, like watch a few hours of conspiracy theories on YouTube and vote for microparties dedicated to single issues like "Abolish Family Law Court", "Australia is Full" and "Give Criminals Longer Sentences"

    • ColtNoir on 30/06/2023 - 11:04
      +1

      I don't even know what the point of this rant is.

    • Frozensage on 01/07/2023 - 09:13

      Flew here on a plane, family got a visa and I grew up with all the white kids thanks to immigration.

    • dm02 on 03/07/2023 - 01:20

      Disgraceful. The poor should get free BJs as well

  • djkelly69 on 30/06/2023 - 19:52
    +2

    Not sure why people don't seem to realise (or just ignore) that owing money to the ATO at tax time is a good thing.

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