Calculating & understanding income tax could be complicated. However, this topic will help you understand Australian taxation system
Do you have to pay income tax?
The 2017 individual tax-free threshold is $18,200. The tax-free threshold is the personal income or earnings, which you can enjoy tax-free. Anything over and above this income is subject to taxation. However, there are a number of factors determining your actual taxable income.
It is known as the goods and services tax. It is a value added tax of 10% on most goods and services. It is calculated on the selling price. It is also levied on a lot transaction in the production process but is finally refunded to all the parties. However, it is not refunded to the end consumer.
How much tax should be taken from my pay?
There are numerous calculators available to calculate tax deductible from the income of an individual. These calculators aid you to calculate the income tax you owe to the ATO (Australian Taxation Office) on each taxable dollar that you earn.
The eventual income tax that you pay depends on various factors like your taxable income, Filling status, Adjustments, Exemptions, Tax deductions and Tax credits.
By understanding all the factors and their impact on your income can help you understand the accurate amount of tax that you need to pay.
Income tax returns
Tax refund refers to the money given back at the end of the year. Tax payers can get a refund on their income tax by filling a tax return form by paper mail or online. It helps you to calculate your tax liability or request refunds as the case may be.
The process of filing a tax return may take a lot of time and energy, however the money saved out of it correctly is well worth it.
Please contract our head office at 03 9740 0997, if you are not sure how Australian Taxation system works. We are more than happy to have one on one session to help you understand the basics.
For further information or your any bookkeeping/accounting needs, please contract Reliable Bookkeeping Services on 03 9740 0997 or visit our website www.reliablebookkeepingservices.com.au