THE AUSTRALIAN TAX OFFICE (ATO) handed out refunds totalling more than $38 billion to 10.8 million Australians in 2022. It was a bumper year that saw the average refund top $3000 – extra cash that many of us will be sweating on this year. While the end of several pandemic tax breaks could slim down your 2023 refund, there’s still time to get the max back on tax.
HOW YOUR REFUND IS CALCULATED
Let’s strip away the mystery of tax refunds. The tax you pay each year is based on your “taxable” income. That’s assessable income (such as wages, salary, government payments and investment returns) less allowable deductions. Not all income is assessable. A lottery win, for instance, is usually treated as a windfall gain.
On the flipside, you may be able to claim deductions relating to your job or investment portfolio that help to lower your taxable income.
Once your taxable income is sorted, the ATO calculates your tax, deducts any offsets and tacks on the 2% Medicare levy to reach your final tax bill. If it’s less than the tax your employer deducted through the year, you’re due a refund.
The bottom line is that maximising your tax refund is all about (legitimately) minimising assessable income and making the most of allowable deductions.
WHAT IS MY MARGINAL RATE?
The marginal rate is the highest tax rate you pay. Australia has a progressive income tax system, meaning higher rates apply as your income rises (see table, right).
هذه القصة مأخوذة من طبعة May 2023 من Money Magazine Australia.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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هذه القصة مأخوذة من طبعة May 2023 من Money Magazine Australia.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
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