Paid Parental Leave

Quick question: if you are not taxed enough on ppl will you end up with a tax bill at the end of financial year?

My employer isn't taxing me enough with the ppl. I'm not the first person to receive ppl either so what the??!!

yes you will (potentially) - depending on deductions etc
it's a taxable payment

Can you call family assistance/centrelink and increase the amount of tax you are paying?

when PPL is paid by the employer (as most now are) the employer is to set the rate of tax deduction, not FAO

They should be taxing it as per the tax tables, they cannot undertax. You can ask for them to take out additional tax at any time. There is an upwards variation form on the ATO site just for this. Takes less than 5 minutes for them to put the amount in the accounting/payroll system.

The standard rate of PPL is $589.40 per week. The amount tax, if claiming the tax free threshold (what most people do), is $61. So the net payment is $528.40 per week.

Thanks Astrid! That makes more sense, as I am receiving $527.40. I was really concerned because everyone I have spoken to is receiving $501 including centrelink

Thanks everyone :) I feel much better now!

FAO put in place a standard taxation rate of 15% if it is being paid direct (person no longer working or numerous jobs/self employed). some employers will tax more highly due to HECS/HELP/Student loans, or because someone has not opted for the tax free threshold with that employer, which is why people will be taxed at different levels depending on which employer and employee it is

Thanks BG. I dont have any complicated things like hecs etc - my tax returns take me 5 mins to do :) so Im guessing Astrid is right and I am receiving the right amount :)

Even those with HECS/HELP will not be taxed more, as they weekly pay is too low for those rates to trigger. But yes, if someone has not opted for the taxfree threshold, then it will be taxed more.

Are you recieving any other money from your employer too? If so, you will need to get more tax taken out. I almost ended up with a bill but realised after the first payment that not enough tax was being taken out so had it adjusted.

I thought I'd add to this old thread instead of starting a new one. I received my first PPL payment tonight, my employer is paying it through payroll, and from what I can work out I've been taxed approximately 40% - this can't be right, can it?


Excuse my sucky spelling, I'm on my iPhone

You will need to query with your employer. Here may be a reason you are being taxed more highly

Maybe they're classing it as a second income??? I know you can only claim the tax free threshold on one 'job'. Or maybe if you are also being paid a high income from your employer it has pushed you up into the next tax bracket???? I'd ask just to make sure.....