Carey Group Quarterly Newsletter

Avoid tax time shock

Here’s how to stay on track:

1. Notify Your Employer of Study or Training Support Loans: If you have a HECS, HELP, or other study-related loan, inform your employer so that they withhold the appropriate amount for your repayments. This can prevent unexpected debts from accumulating.
2. Claim the Tax-Free Threshold Correctly: Ensure you’re only claiming the tax-free threshold from one employer. Claiming from multiple employers can lead to under-withholding and a tax bill at the end of the year.
3. Review the Medicare Levy Surcharge: If you don’t have private health insurance and your income is above a certain threshold, you may be liable for the Medicare Levy Surcharge. Review your health coverage and income to avoid additional tax obligations.
4. Confirm the Correct Income Tier for Health Insurance Rebates: The private health insurance rebate is adjusted based on income tiers. Confirming your tier helps ensure you’re receiving the appropriate rebate and prevents discrepancies at tax time.
5. Consider PAYG Instalments for Investment or Business Income: Voluntarily opting into Pay-As-You-Go (PAYG) instalments can help you stay on top of tax obligations if you have investment or business income. This way, you can spread tax payments throughout the year instead of facing a large tax bill all at once.

Taking these steps can help you maintain control over your tax obligations and avoid unexpected liabilities. For further guidance on any of these areas, consider speaking to a tax professional to make sure you’re fully prepared.