Taxing Employees: Working Class Folk
In This Chapter
Working for a salary or wage
Determining your tax rate
Claiming and substantiating your tax deductions
A lingering pain when you work for a living is your legal obligation to share part of your hard-earned with the Tax Office. But at least you know it’s going to a good cause! And it goes without saying, the more you earn the more it’s going to hurt. When you lodge your tax return the federal government will let you know where your personal tax was spent.
In this chapter, I explain that if you’re an employee, your employer must deduct income tax from the amount you earn and make a contribution to a complying superannuation fund on your behalf. I also go over what happens if your employment is terminated, how to determine your income tax rate, and the conditions you need to satisfy to qualify for a work-related tax deduction.
Earning a Living: Salaryand Wages
If you’re planning on looking for a job, you need to get a tax file number (TFN) from the Tax Office and quote it to your employer. Your new employer asks you to complete a Tax file number declaration (NAT 3092) form within 14 days of commencing employment. This ...