chessp

I am at the moment trying to figure out how tax is calculated in Aus- PLEEEEAAAASSSSEEEE help. I just don't get it. Firstly, my salary package is divided into two elements salary and then this 9% super thingy. So for tax calculations do you add on the 9% to the salary or do you just take the salary. Secondly medi care which figure is it calculated on? Sorry for asking such a thick question but have been on several web sites and still can figure it out.

Any help is much appreciated- its really annoying me!!!

Kalenge

Have you been on the Aus goverment taxation website ? You should find all the answers to your questions there.
http://www.ato.gov.au/

There's also various tax calculators that you can do online on their website. This is the simple one...
http://calculators.ato.gov.au/script...xCalc/main.asp

JAJ

The ATO website is http://www.ato.gov.au

A general rule in Australia is that non-cash benefits are not taxable to the employee, and instead the employer pays Fringe Benefits Tax. The 9% superannuation is treated differently, but you don't include it in your tax return as far as I know.

MartinLuther

Hello,

You calculate tax against your salary - you do not include the employer super contributions (the 9% thingy).

The employer super contributions are similar to the employer NI contributions in the UK (not to be confused with the employee NI contributions) with the major difference that in Aus the employer's contribution goes into your own personal pot whereas in the UK the employer's contribution (less 2% if you contract out) goes into the government's pension pot. This is why employees in Aus are more interested in this contribution.

Just so you know, the super contribution is taxed at 15% when it goes into the super fund. You don't have to do anything about this as this will be handled by the super fund and is not related to your personal tax. When the money comes out the other end you get a 15% tax credit (if you play by certain rules).

ABCDiamond

Just to confirm, this 9% super is NOT part of your salary.

It is an "Employer cost" on top of your salary, and the % is dictated by the Government, as a COMPULSORY payment by the employer, and it is in Addition to your salary. You can also choose which Super fund it goes into, if you wish.

As said by MartinLuther, "similar to the employer NI contributions in UK"

Tax
Super/Pension

Kiwipaul

I agree it's taxed at 15% going in BUT it's also taxed at 15% when you withdraw it (not a 15% tax credit) and any income it generates in the super is also taxed at 15% (which the super fund takes care of).

To the best of my knowledge anyway.

chessp

Thanks everyone. I can stop scatching my head now.