Avoid a Tax Time Shock

Individual taxpayers can take the following steps right now to ensure the correct amount of tax is being put aside throughout the year:

• let their employer know if they have a study or training support loan, such as a HECS or HELP debt;

• check they are only claiming the tax-free threshold from one employer;

• consider whether the Medicare Levy Surcharge may affect them this financial year (i.e., whether they have the appropriate private health insurance);

• check their income tier is correct for their private health insurance rebate; and

• consider voluntarily entering PAYG instalments and pre-paying tax throughout the year to avoid a large tax bill at tax time for investment or business income.

If you have any questions in relation to the matters discussed in this blog, please get in touch with us.