Hi
Can anyone please explain to me why the tax rates from the ATO webpage
does not match the actual tax tables?Tax rates 2004-05
Annual Taxable income
$0 – $6,000 Nil
$6,001 – $21,600 17c for each $1 over $6,000
$21,601 – $58,000 $2,652 plus 30c for each $1 over $21,600
$58,001 – $70,000 $13,572 plus 42c for each $1 over $58,000
Over $70,000 $18,612 plus 47c for each $1 over $70,000Let’s assume a $600/per week gross income.
According to the tax table “with tax-free threshold no leave
loading” for $600/week, tax would be $115/week. Annually tax this would be $115 * 52 = $5980.So now lets assume $600/week * 52 weeks = $31200 gross/year.
This falls into the $21600-$58000 tax margin therefore $2652 tax need to be paid
plus 30cents/1$ for what ever is over $21600. In this case it would be $9600 * 30cents
which is $2880. So total annual tax is $2880 + $2652 = $5532$5980
-$5532
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$ 448 difference in tax depending which way you use to calculate the tax. Shouldn’t
that be exactly the same?Can anyone please tell me what am I missing?
You can find the tax table here:
http://www.ato.gov.au/businesses/content.asp?doc=/content/12333.htm&pc=001/003/019/001/006&mnu=601&mfp=001/003&st=&cy=1http://www.ato.gov.au/content/downloads/n1005-05-2004.pdf
jsandso
Maybe the Medicare levy 1.5c/$ $468.00 on $31,200
Also bear in mond that there is for most people an extra pay day this year if they’re paid on a Thursday or Friday
crj is correct. The difference is due to the medicare levy of 1.5%.
Say, for example that I am an employer, and that I took out for you $5,532.00 a year as PAYG Withholding Tax.
You would still be liable for the $468 when you lodge the tax return.
So, based on the ATO tables, all the tax liabilities are paid for in advance which should result in a nil or neutral tax position.
Assuming no extra income or deductions, of course. [cap]
Thanks guy’s
you are right it is the medicare levy what I was missing. I should have taken the time to read it properly.
Thanks again
jsandso
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