Tax can get complicated quickly, even for individual taxpayers. Changes as simple as starting a new job or changing your private health insurance can affect how much tax you need to pay.
The good news is, there's a handful of things you can check now to help avoid an expensive surprise after June 30:
- If you have a study or training support loan (e.g., HECS, HELP, VET Student Loan), make sure your employer is aware of it and is withholding the correct amount from your pay.
- If you have more than one job, make sure you are only claiming the tax-free threshold from one employer. Don't worry, the ATO looks at your whole income at the end of the year so you don't actually pay more tax in total than if you earned the same amount from a single job.
- Check whether the Medicare Levy Surcharge will apply to you this financial year, and if you don't have private health insurance consider if it might be the right choice for you.
- If you have private health insurance, make sure your income tier is correct for the rebate. You can often do this via your insurer's online portal.
- If you have other income sources like investments or a side business, consider voluntarily entering PAYG instalments and pre-paying tax throughout the year to avoid a large tax bill at tax time.
If you need help understanding any of these factors or estimating and planning for tax bills ahead of time, we can help! Feel free to contact our office on (03) 8390 5440 or book an appointment online to get started.