JaneandJim

I got a bank statement today and saw that they'd deducted $80 tax, which must work out at about 47%. I knew that interest was taxable but thought you declared it on your tax return?

I don't work and the interest I earn won't exceed my personal allowance. Can I claim this tax back at the end of the tax year?

Also, what happens when you have a joint account? Is all the interest taxed at the taxpayers highest rate or just half of it?

Jane

bondipom

Do they have your TFN?

JaneandJim

Yes, the transaction details says "Tax file number tax"

bondipom

On my Oz accounts no tax is deducted. At tax return time the interst is added to my income and I pay the tax on what is calculated at the end.

For the joint account we spit the income so I earn half and the wife earns half.

I have provided my TFN to all the savings acocunt holders.

MrsDagboy

Jane, I would check on that, make sure they actually have it & that its noted on that account. That transaction certainly sounds like they have deducted it because they dont have a record of the tax file number.

Doesnt happen to be the Comm bank by any chance, does it?

Either way, I would either call them or better still go into a branch & ask specifically about the transaction, sounds sus to me. BP is right, the only time that I know of that they deduct the tax from the interest is if you dont decalre a TFN, other times it should be handled on your tax return.

(ps. hope you had a good time on Sunday? Youve been rather quiet since then! )

bondipom

You can claim the tax paid as a tax credit when it comes to return time. In the end it will work out.

JaneandJim

Just called HSBC and they have our TFNs and it looks like the tax was deducted before they loaded them into their system.

I'll just have to claim it back in July.

Thanks for the replies Bondi, thats what I thought.

Mrs D., we've had a fairly stressful couple of days. There was a stuff up with Jim's contract (which I'm not allowed to talk about ) and then we lost out on a house we wanted to buy. My mother is going through a traumatic time (again ) with my sister back home.

On the postive side, Jim's UK contract is just about sorted, so now he has 2 jobs for the next 3 months. And the sun is shining again.

We hide a nice time on Sunday, thank you. Didn't get to talk to many people though. I still can't put many names to faces. I'll have to make more of an effort next time.

Jane

topcat

I got charged withholding tax because even though I'd given HSBC my new australian address and a TFN I hadn't specifically told them I was a resident (for tax purposes).

Not that it matters too much as more will have to be paid in the end, but hey at least I can get interest on the interest (all of 2cents I should think)

MrsDagboy

Jane, good news on the job for Jim, not such good news on the house & your mum .

Glad you enjoyed Sunday, you wouldnt recognise me again now anyway, I went to the hairdressers on Monday & got my hair all chopped off .

TC, is that resident, ordinarily resident, resident for tax purposes, domiciled, claiming split year treatment or working under a double tax arrangement?

kevmitch

I had the same thing happen to me. However, I just let the bank know my TFN had come through and they credited it back within 2 hours. ..and yes, it was the Commonwealth Bank

Kev