G'day All…
Does anyone have a basic calculator or self testing formula to follow to determine how to determine your tax returns based on your income tax, Annual rental return, and mortgage interest. Would love to be able to calculate my tax returns without going onto some of these dodgy tax caluclators or speak directly to Tax people just yet… cheers
tugger
Firstly pls forgive me if you know this already…
I'll try to keep this as simple as possible.
I will assume you have been paying tax as you go (ie PAYG).If you earn:
$50,000 —-> Your employer would have paid the ATO $ 10,350.00
$60,000 —-> Your employer would have paid the ATO $ 13,350.00
$70,000 —-> Your employer would have paid the ATO $ 16,350.00So, (READING SLOWLY),
say you've earned $70,000 for the financial year, HOWEVER you had $20,000 in legitamit deductions…Technically you should have only paid tax on a $50,000 salary (ie. 10,350)
—-> Your employer would have paid the ATO $ 16,350.00… But you should only have paid $10,350.Therefore your tax return would be $6,000
So a RULE OF THUMB in this kind of circumstance (PAYG) might be:
"You get ABOUT 30% back on your deductions" (ie. $6000 return from $20,000 deductions).
Hope this helps.
Cheers,
Anthony.
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