Income Tax

Every person who works in Australia has to pay income tax if they earn over the tax free threshold.

Your employer should calculate and withhold the appropriate amount of tax from your pay, and pay it to the ATO on your behalf. Within 14 days of the 30 June each year, your employer will give you a Payment Summary, which tells you how much they have paid you and how much tax they have paid to the ATO on your behalf.

At the end of the financial year (the financial year ends on 30 June), if you have worked, you will need to complete a Tax Return. The information from your Payment Summary needs to be included on your Tax Return, along with any deductions claimable. You must have proof of deductions claimed. Depending on your income and the amount of tax paid, you may receive a refund or a tax bill.

FYI – If you are receiving Centrelink payments and you work at the end of the financial year you may owe the ATO money if no tax is withheld from either of those payments. To avoid this you should consider having tax withheld. You should speak to Centrelink about this.