How much tax should I be deducting from my job seeker payment?
Job Seeker Tax
tomk1234 on 01/05/2020 - 18:50
Comments
It depends what your marginal tax rate is/was while you were working. A safe bet would be to add the expected JobSeeker income to the employment income you've made this financial year. That total will put you in one of these brackets:
https://www.ato.gov.au/rates/individual-income-tax-rates/
And use the corresponding %. For example, if your total income is $50,000 your marginal tax rate will be 34.5% (including Medicare Levy). So ask Centrelink to withhold 34.5%.
At the end of the day it'll "come out in the wash" and won't make a difference after your tax return is done. You'd rather not get a big tax bill though, which will happen if you don't withhold any tax and haven't prepared for it.
Isn't JobSeeker tax exempt?
no, income support isn't
If jobseeker your only income for the financial year it would be tax free.
But if you earn $1 from a job in the financial year then the entire jobseeker payment becomes taxable income and counts at tax time.Lol
Where you got this? First you never get jobkeeper if you had never worked.
2nd thing all income follow tax table which can be any government support add up to tax table if you not hit that first exempt tax table you do not pay tax..The question was about jobseeker not keeper.
If you ONLY income is a government payment then it is NOT taxable (usually because it falls under the threshold) but even if it goes over it is not taxable until you earn income from another source.
Read the tax code it’s literally clear as a bell!
@jimbobaus: Lol have you ever file tax return? You must be Centrelink guy who live on our tax paid money but I know that,
Whenever you apply tax return you need fill up form any support you got from Centrelink it's add up in income, may be not all payments so stop mis guiding people.
https://www.ato.gov.au/individuals/income-and-deductions/inc…
No lol. It the same as everybody else. Once you earn over $18200, then you pay tax.
Unless the government payment is your only income.
It’s in the tax code if your only income for the entire financial year is a government payment or pension then you are exempt from tax. You would need to lodge a notice of intention to no lodge a return for that year however.This is why Centrelink suggests deducting tax from your payment if you have worked. They even state on the form that if the unemployment payment or pension is your only income this financial year you are not liable to pay tax
Back when the threshold was 6k it was still exempt income unless you earned money from another source within the fin year.
@jimbobaus: Pretty sure jobseeker payments are still considered taxable income even if you don't end up paying tax on it. It's still included in the same $18,200 tax-free threshold that everyone gets.
https://www.abc.net.au/news/2020-04-28/federal-government-co…
@jimbobaus: Reason have you pull out table of government support vs tax table?
Most of payment not crossing $18200 that's why if you get only get government support no other income stream very less likely you will cross $18200 but still you need declare their payments in case you cross first table then they can give you penalties for misinformation for not paying your tax.
JobSeeker is part of your taxable income so it would depend on your marginal tax bracket for the financial year
How much have you earnt fytd