Welcome to Part Two of your crash course on why you can a get a tax bill ...
There could be a number of reasons why you haven't had enough tax withheld - we have compiled a list below, (these are just some of the reasons):
It could be as basic as an employer error.
Your employer could have looked up the wrong tax tables and not taken out enough each week.
If you had multiple employers during the year.
If you had more than one job either at the same time or from one to the next, then between them they may have not withheld enough tax. In particular, you should make sure you only claim the tax-free threshold from one employer.
If you have a HECS/HELP debt and did not inform your employer.
If you go over the repayment threshold and your employer did not know you had a debt, then they would not have been withholding extra to cover the compulsory repayment.
If your pay is not the same amount each pay, and it jumps around with overtime/bonuses etc.
This can impact the amount of tax withheld.
As well as the above reasons the following will also impact your etax income tax return.
If you have some cash in the bank and they actually paid you some interest. This is income added to your etax return that generally has had no tax withheld during the year. So, when you do your etax return the taxation office wants its piece of it.
If you had a rental property that was positively geared (earns more than it costs). Then you will need to pay tax on the profit.
If you did a bit of work under an ABN.
If you went over the Medicare levy surcharge threshold and didn’t have private health cover. This will mean that you are charged Medicare surcharge and can turn your refund into a payable (yuk).
Remember the above reasons are not the only ones, and in some situations, it can be a combination of reasons. We know this won’t soften the blow of getting a tax bill however it may help you to better understand why.
Note that the information provided is general in nature and subject to change, please contact one of our professionals who can evaluate your circumstances and provide more accurate advice to your current situation.
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