Things that p*** you off/bug you/annoy you

[chrisp]

The old saying, if you're paying tax you're making money.
You just need to ignore everything crisp says and look at ways to minimise it.

As long as ‘minimising tax’ doesn’t involve paying fees and changes that are above and beyond the tax-saving benefits!

And if @losh1971 is paying 40% tax on his extra hours, then he would be in the $120,000+ tax bracket??? Something doesn’t quite sound right. But I’d bet my youknowwhat that their tax accountant is doing very well out of their tax arrangements.

 

[losh1971]

As long as ‘minimising tax’ doesn’t involve paying fees and changes that are above and beyond the tax-saving benefits!

And if @losh1971 is paying 40% tax on his extra hours, then he would be in the $120,000+ tax bracket??? Something doesn’t quite sound right. But I’d bet my youknowwhat that their tax accountant is doing very well out of their tax arrangements.

Not even close, to $100k so I can't understand why even with a tax calculator those few extra hours weren't taxed at 30c in the dollar?

Only the wife uses an accountant I do my own tax, so best not make too many assumptions and at $300 + GST for last years tax return he is hardly getting rich off us.

 

[chrisp]

Not even close, to $100k so I can't understand why even with a tax calculator those few extra hours weren't taxed at 30c in the dollar?

Only the wife uses an accountant I do my own tax, so best not make too many assumptions and at $300 + GST for last years tax return he is hardly getting rich off us.

That’s a good question, but you should be finding out the answer.

I’m trying not to make assumptions, but the 40% figure is perplexing. It does correspond to the $120,000+ tax bracket including Medicare levy. Or is it something like a HECs debt repayment that kicks in?

But, as @AirStrike said, if you’re paying (more) tax, your earning (more) money, and both are good.

 

[Ginger Beer]

Salary sacrificing before tax into your Super reduces your taxable income, and can lower your tax bracket

Yes, you pay tax on it when it comes out, BUT, the tax is alot less

Dropping as much money as you can into a "good" Super fund that shows "good" gains is much better than what a bank would ever give in interest

Last time I checked (a month ago) your taxable amount in your Super gets only a 17% hit, which is alot less than the income tax hit the funds would have seen

Disclaimer: I'm not a financial advisor, so do your own research on what works best for you and your family for your financial security at retirement

Not that I'm counting, but...

 

[losh1971]

No HECS debt as I paid every last dollar up front to put myself through uni. Even the online calculator was correct when i checked my take home against what I earned. I have noticed it before when I miscalculated what I would take home, after getting less than I expected. And with so much tax free income at worst on what I get it should be no more than 30c. The tax calculator is not out as well, surely?

 

[chrisp]

No HECS debt as I paid every last dollar up front to put myself through uni. Even the online calculator was correct when i checked my take home against what I earned. I have noticed it before when I miscalculated what I would take home, after getting less than I expected. And with so much tax free income at worst on what I get it should be no more than 30c. The tax calculator is not out as well, surely?

Sometimes it’s easier to ask the HR or Payroll section what has (or will) be (been) deducted, and why.

 

[AirStrike]

Yeah, I minimise where I can, I already have I think $34k-$35k tax free through salary sacrifice and the tax free threshold. I still didn't know that anything I earn above my 60.8hrs a fortnight was taxed so high. Not sure what I can do about that? I'm not on big money, compared to some people I know but I do get paid ok. I was just expecting more take home pay than what I got.

The tax is calculated on that earnings period based as an annual income, so it may push you into the next tax bracket for the overtime income (especially if you are close to the cap on a particular bracket).
It all balances out in the wash come tax time, you'll just receive it back then. Think of it as forced savings lol

 

[AirStrike]

As long as ‘minimising tax’ doesn’t involve paying fees and changes that are above and beyond the tax-saving benefits!

And if @losh1971 is paying 40% tax on his extra hours, then he would be in the $120,000+ tax bracket??? Something doesn’t quite sound right. But I’d bet my youknowwhat that their tax accountant is doing very well out of their tax arrangements.

A good accountant will make/save you more than they cost, the battle is finding a good one.

 

[losh1971]

Interesting thing is last year I faced a tax bill until I put in my claims which gave me some megear amount that was well under $200. Year before I think I got four figures.

 

[Immortality]

BAhh, all this talk of tax.

It's time for a much more important job, clean the coffee machine so I can make a good cup of Joe!