Australia Tax Refunds

In Australia, the tax system is geared so most employees receive Australia tax refunds.

How does it work?

The Australian tax system requires employers to withhold (or deduct) an amount of tax from each pay and remit that tax to the tax office each quarter.

At the end of the year, the employer issues a PAYG Payment Summary, detailing the amount of income earned and the amount of PAYG tax withheld (deducted) from the gross income for the year. It is this amount withhgel that contributes to Australia tax refunds.

When submitted to the tax office with the annual income tax return, Australia tax refunds are calculated from the net or "taxable" income and the amount of tax withheld.

Put simply, if you have had more PAYG tax withheld from your pay than you needed, you get Australia tax refunds.

Copyright 2014. My Tax Zone.