Simple Tax Question Pls Help!

[Luke741]

Hi all. I need to know, is it ok to not pay taxes on a weekly basis, but instead keep all of the money and then at the end of the financial year pay all of your tax in a lump sum?

It's because I'm working just part time, with very different hours each week, and my boss.. who isn't the sharpest tool in the shed.. is taking out heaps of tax, and telling me "don't worry, you'll get it back at the end of the year."

But I get this feeling I am being screwed over in some way. Example, this year I have earned only $3000, and I have paid $500 tax !! Yet if I look at the tax rate, if I earn less than $6000 I shouldn't have to pay any tax. And this is a possibility since I'm studying and might just quit this job... Then what happens to my $500 ????

I just want all of my money every week, then later I can work out the tax. Is that possible?

Thanks a lot

 

[TigerCraig]

Hi all. I need to know, is it ok to not pay taxes on a weekly basis, but instead keep all of the money and then at the end of the financial year pay all of your tax in a lump sum?

It's because I'm working just part time, with very different hours each week, and my boss.. who isn't the sharpest tool in the shed.. is taking out heaps of tax, and telling me "don't worry, you'll get it back at the end of the year."

But I get this feeling I am being screwed over in some way. Example, this year I have earned only $3000, and I have paid $500 tax !! Yet if I look at the tax rate, if I earn less than $6000 I shouldn't have to pay any tax. And this is a possibility since I'm studying and might just quit this job... Then what happens to my $500 ????

I just want all of my money every week, then later I can work out the tax. Is that possible?

Thanks a lot

No, you pay as you earn. Your tax rate is paid by your employer based on your annual salary. If you quit your job and don't work again this financial year, and have earned less than $6000 you will get all your tax back as a tax refund.

Self employed is different.

 

[Qsaint]

You will get it back because every week you are taxed as if you earn than much for 52 weeks. Anyway just think of it as enforced savings

 

[Luke741]

Well this is very gay news indeed. But thanks for your fast and knowledge replies, I appreciate it

Luke

 

[RoosterLad]

If you are self employed you can use PAYG Instalments but when you are on a salary & wage job you do have to pay each week.

Tax time is good when you are young and working part-time as you get a nice lump sum when you get your tax return.

 

[SriLankanCat]

There is a thing called a PAYG witholding statement taht u can get for FREE from any newsagency, it tells u exactly how much tax should be taken out depending on how much u earn. Make sure u grab the weekly one as there are oens for fortnightly and monthly.

Rememebr if ur under 18 there are different tax rates

 

[TurboHead]

isn't there some form you fill in that results in not paying tax on the first $100 you earn each week (basicallycovering the tax free 6k you can earn each year)... I remember filling one in years ago when I had 2 jobs and I needed to select which one I wanted to be taxed less on.

Ring the ATO - I'm sure someone there could help.