::: THE MAIN eVENT THREAD :::
When you are taxed each pay the assumption is made that you are going to be earning that much for the next 12mths.
When tax time comes if you haven’t really earnt that much to be in the next tax bracket you get it back.
Think of it as enforced savings!
agreed with ozgirl! then when you get your tax return, put some of it aside for essentials like car rego and then you’ll have more money to play with the rest of the year.
Truth!
but my tax return has to pay for my flight to Europe!
yeah i know that is is why i put an extra 50 dollars into tax every pay cycle.
I’m really hoping that my tax will pay for NZ and the Shred. I am being a bit optimistic though.
You should get a good return TJ knowing the difference in your pay packets!
Remember You are currently being taxed based on the assumption that you have been earning your current wage for 12 months! But at the same time you didn’t pay enough in your last job….
The point then comes that if you are on 50k for 1 job and then 100k for the 2nd, (i am not) then you should be paying about 75k equivalent worth of taxes.
So 50k might equal 10k taxes and 100k might equal 30k taxes so you probably need to pay about 20k (if changing jobs 50% of the way through). Therefore changing jobs shouldn’t really impact your tax return.
75K is a different tax bracket to the 100K job
So you if you know earn 75k (over the year) but were paying tax base on 100k for the half of that year you should get tax back!
Yea but the brackets are for every dollar you earn over a certain amount… I doubt it would make a ton of difference but if it gets me more money, I’ll be happy 
yeah i know that is is why i put an extra 50 dollars into tax every pay cycle.
Mate if you’re not doing BAS that’s really not a great way of doing things, if you put $50 every week into a savings account at the end of the year if it was in a high interest savings account earning 5% you would have another $50 in interest. $50 isn’t much but it’s better than letting the government hang onto your money and getting it.
also keep in mind that this year you earn 18,000 tax free, as they lifted the threshold by 6 grand. That should mean you get a fatter return! Looks like I’ll be getting all of mine back!
Another thing is you can only claim the tax free threshold for one job, I think the second job is then taxed at the maximum rate of 45c on the dollar. It all evens out in the wash at the end of the year when you put your tax return in.
For arguments sake your first job earned you $50K, that would mean you had paid $8550 in tax for the year on that income. Say your second income is $20k so the tax on that would be $9000 meaning total tax paid for the year =$17,550. In reality because you earned $70k for the year you should have only paid $14550 meaning you will get a return of $3000 before you even factor in any deductions like laundry, car etc.
Thats only if you work 2 at the same time
yes, ending one and starting another means that when you start the new one you will fill out your tax info and claim the tax free threshold for that job.