TABLE OF CONTENTS

• Receiving 2 or more income sources in a year
  • Receiving centrelink payments + earning a wage/salary at the same time
  • Being employed at 2 or more workplaces in the year
    • Having worked at one job, quit, and take a new job
  • Additional income sources
• Student debt
• You made over $90k and don't have private health insurance
• You don't have enough deductions:

When you earn two sources of income, the provider of said income (Employers, centrelink, Banks you have saving accounts with, etc.) only withhold tax sufficient for their respective income they paid to you. e.g.:

• Income source A withholds enough tax for your income from source A
• Income source B withholds enough tax for your income from source B
  so on so forth.

source A doesn't withhold enough tax for both source A and B. A & B don't talk to each other or know your tax situation.

It's up to you to inform those income sources that they should withhold more tax for you, OR you need to save some money aside to prepare for the tax bill

Receiving 2 or more income sources in a year

Receiving centrelink payments + earning a wage/salary at the same time

If you receive centrelink payments whilst employed, you should request Centrelink to withhold tax on your support payments. When you submit a claim, it will ask you for the option to deduct tax from your payment. See more here https://www.servicesaustralia.gov.au/deduct-tax-from-your-payment?context=22151

Being employed at 2 or more workplaces in the year

When you fill out your tax file number declaration or telling your employer about your tax situation:

• First job can be TAX - FREE
• every other job should be NO TAX-FREE

Each job only withholds the right amount of tax based on what YOU INFORM them and it's UP TO YOU to check the payslips to see if your employer(s) are withholding the right amount.

See more here

• https://teresatranassociates.freshdesk.com/en/support/solutions/articles/36000227444-question-8-on-the-tfn-declaration-do-you-want-to-claim-the-tax-free-threshold-from-this-payer-
• https://www.ato.gov.au/Individuals/Jobs-and-employment-types/Working-as-an-employee/Income-from-more-than-one-job/

Having worked at one job, quit, and take a new job

After quitting Place A, and taking up a new job with Place B - the new job (job B) only withholds enough tax for the first dollar you earn with them. It doesn't take into account that you already earned income from elsewhere prior - like centrelink or a former employer (place A). Hence you need to tick NO TAX-FREE THRESHOLD for every new job you take on if you previously quit from another place in this financial year. 

You can change it back to the tax-free threshold at the start of the next financial year. 

Additional income sources

You made additional income from:

• dividends,
• interest income,
• capital gains from cryptocurrency, selling property, etc,
• employee share schemes,
• rental property income,
• business income - uber, doordash, etc.
• Centrelink

Student debt

If you have 

• a student loan
  and 
• made above $51k
  but 
• didn't inform your employer that they should withhold more tax from your net wage due to your student loans (you generally inform them via filling out the TFN declaration question 9 - see below),

Then you have to pay back more tax

Its UP TO YOU to check the payslips to see if your employer(s) are withholding the right amount.

You made over $90k and don't have private health insurance

If you are 

• single and made over $90k
• or a couple and made over $180k

and don't have private health insurance hospital cover (not to be confused with extras or ancillary cover)

then you have to pay medicare levy which is your employer doesn't pay for in tax withholding;

Also, when applying for hospital cover, you probably requested a rebate on your insurance fee - but if the rebate is too high, you have to pay it back in your tax return. The rebate is essentially getting some of your tax refund early by offsetting the insurance fees. 

Income test

Salary package

• Note that salary sacrificing your income for credit cards, or health insurance, or car, or loan etc. it may reduce the income tax you pay, but it does not reduce medicare levy surcharge, or hecs repayment

You don't have enough deductions:

Your job probably doesn't require much expenses to be paid to maintain your job.