Withholding Taxes | 2023 Gotax

Can I claim the tax that was withheld on my savings accounts?

Yes, you can claim the withholding tax on your interest savings.

This occurs as a result of NOT providing your Tax File Number to the bank your institutions that are holding your deposits.  

Let's see how all this withholding tax works. 

Let’s say you are an Australian resident and you have a savings account with an Australian bank. If you do not provide your Tax File Number (TFN) to the bank, they are required to withhold tax from the interest earned on your savings account at a rate of 47% under the Pay-As-You-Go (PAYG) withholding regime. This means that if you earned $100 in interest over the course of a year, the bank would withhold $47 and send it to the Australian Taxation Office (ATO) on your behalf. You would then receive the remaining $53 as interest income.

However, if you provide your TFN to the bank, no tax would be withheld from your interest income.

To claim this tax, you can use an online tax service like GoTax. GoTax provides a simple and easy way to file your tax return and claim any overpaid tax. All you need to do is enter your income, tax withheld, and deductions, and GoTax will calculate your estimated refund. If you are unsure about what deductions you are entitled to, GoTax can guide you through the process and help you maximize your refund. So, if you want to claim the withholding tax on your interest savings, head over to gotax.com.au and get started!