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I've just been told that PPS is taxable - does that mean I was supposed to take tax out on the PPS payments I received last year?
Will I have a debt now? It said I recived about $11k and total tax withheld $0. I know you can earn $6K tax free so does that mean I now have to pay tax on $5K??
Should I be taking a certain % out every fortnight from now on??
Help and TIA!!
I think that just means that it has to be declared on your return, not that you have to pay tax on it. The income info for PPS has to be provided, but FTB doesn't, I think. Mine has been that much & I've never paid tax on it.
Have you got your group certificate yet? You certainly should have.
If you aren't working there is no need to worry. You are working though, yeah? If you have been calling in your fortnightly income to Clink they will have been adjusting your PPS payment accordingly and there should be no need to stress.
I usually get them to hold back $10-20 pf, just in case I go back to f/t work, or get part time work that might cross thresholds etc. I get it back at the end of the fin year - then I use it to pay my rego :lol:
Ok cool, yep it's been being adjusted but I thought after receiving the payment summary that I was supposed to pay tax on the PPS because it says "Taxable $11,044, Tax withheld $0"
Cool so I include it in tax return but don't have to pay tax on it...is that right??
i was going to say the same as Lulu - it is taxable, but because your income gets adjusted regularly when you report, it has minimal amount of tax payable on it when they take into account things like the tax free threshold and low income credits on your tax. if you're working, it's worth getting some tax held on your payment anyway - just in case. if you do get a debt to the ATO it will only be a small one
if you have to pay tax, you have to pay it on ALL income - so that will be included
Ok cool, so should I be saving a % of my PPS for tax this year?
you can do a % and have it taken direct from your payment, or simply ask for a dollar amount each fortnight. think you can add the tax deduction via online services - or it takes about 2 minutes once you get to a consultant on the phone.
if you save it yourself at home, you're likely to use it if money gets tight and not have it if needed - if you do it through c'link/FAO you will have an enforced savings if you don't need to pay it kwim? it can be added, amount changed, or removed at any time
Awesome thanks BG and Lulu :)