babysinead

Can anybody help?? My husband and I flew over from the UK 3 weeks ago, he started a job last week and gave the payroll department his tax file number on friday last week.

He double checked with the payroll department yesterday as he had a funny feeling he was going to get taxed (she said she had not had his tax file number when he checked) I am on the understanding that we are at the end of the tax year and you have $6k of tax free allowances before you start to pay tax ??????????

Therefore he should not be paying any tax, but his wages went into our bank account yesterday and they have taken $400.

My question is, will they refund this amount back through his pay next week, or will he now have to claim this back from ATO ???????????

knockoff nige

He'll claim it back from the end of June. When you get paid, a yearly estimate is calculated and you are taxed on that. If you over pay, you claim it back at the end of the tax year. It takes a couple of weeks to come through if you post it off.

babysinead

How do we claim it back? Is their a form i need to complete? can i do it on line and do we need to wait for my husbands end of year statement?

Sorry for all the questions, we are new to this

knockoff nige

Thats ok. You can download a software app onto your computer, fill in a stupid sized form, print it off and then wait for the refund. It asks you for details on amount of interest you've earned (the banks dont pay tax on that for you), entitlements and all sorts.

Or you can hire an accountant to do it for you.

bcworld

You claim it back on your tax return, which you can start thinking about completing after Jun 30.

However, the tax free allowance is pro-rata so he is not entitled to $6k of tax free earnings this year, more like $6000/12 = so $500, and if you arrived after Jun 1 potentially not even that, it could be $0 according to advice I was given doing my first tax return.

knockoff nige

I dont think its pro-rata

babysinead

We dont have a printer....only laptop, can i get the forms in the newsagents/post office?

If he has overpaid by $400.00 surely he can claim the whole lot back? I feel quite annoyed as he gave them his tax file number and they didnt use it

bcworld

http://www.taxassistant.com.au/Return2011/Help/a2.htm

knockoff nige

They would have used his tax file number. You cant work without one. Get him to print it off at work, if he can.

knockoff nige

Hm, must be new.

bcworld

Well it was the case when I did my first tax return in 2006. I remember having the discussion about whether I could count the month in which I arrived in the part year tax resident number of months.

fish.01

Payroll depts usually work out tax on each pay as if you are earning the same all year. They take the tax free threshold into account when deciding the amount of tax in each pay - assuming the employee ticks the box to claim the tax free threshold on the TFN declaration form filled out when starting a job. I imagine to do otherwise would mean complicating it by having to examine each employees circumstances...ie have they changed from another job and used up their allowance already, do they have other sources of income etc.

The only difference handing over your TFN might make is the rate of tax charged. If not handed over they would have been obliged to tax him at a penalty rate of 46.5%...either way some tax is charged and the excess tax would need to be claimed at tax time.

Swerv-o

Yes, I had those games. they didn't want to count it for my allowance, but did want to count it for my interest income.

In the end, bizarrely, they decided to go with the way that got them less...


S

sa2uk2oz

mine was also worked out pro rata. I started work in Sep 2007 and by the end of that tax year did not get the whole $6000 rebate, only 10/12 of it.

Rambi

The tax free allowance is pro-rata. Not new as well. It was pro-rate 7 years ago when I arrived.

I don't think LITO is.