Savings and Interest
Jan 22nd 2011, 3:25 am
#31
Forum Regular
Joined: Jan 2010
Posts: 188
Re: Savings and Interest
If I wanted to live off the interest of my savings, I'd want ALL the interest without tax being deducted to live off - maximising my income.
Then, I'd hopefully get a job and pay the tax owed on the interest at the end of the year.
Hopefully that's a bit clearer - as it's not against the law to withold your tax file number.
Then, I'd hopefully get a job and pay the tax owed on the interest at the end of the year.
Hopefully that's a bit clearer - as it's not against the law to withold your tax file number.
Correct,it is not against the law to withold your TFN,but if you do not give it then you are taxed at the highest rate + medicare levy.The bank will withold that money and you would need to claim it back at the end of the tax year.
Geordie downunder
Jan 22nd 2011, 3:50 am
#32
Forum Regular
Joined: Jan 2010
Posts: 188
Re: Savings and Interest
Thus, say your tax bill is 10K,at 6% you will get interest of $600 for the year.At the end of the year you will pay $180 in tax leaving you $420 better off simply by having use of that money.
Unless laws have changed and you do not have the lump sum you can make weekly or monthly PAYG payments just as an employee is taxed.
The best way to earn money in OZ is through dividend payments,max tax 15% +medicare levy,or CGT,max tax 22.5% + medicare levy.
geordie downunder
Jan 22nd 2011, 8:47 am
#33
BE Forum Addict
Joined: Mar 2004
Location: Sydney
Posts: 1,628
Re: Savings and Interest
if you are living in Australia definitely best to get your TFN to the savings provider asap to reduce the amount of tax withheld.
