Question about tax reduction

[Jenko]

Does this sound right?

I earn $100500 per year, I salary sacrifice $13,798 in super and deprecate $8500 in an IP. Now with my pay under $80k I thought I would see a reasonable change in my pay with PAYG system however my tax has only reduced around $38 per week does this sound right?

 

[tobe]

what was the taxable income amount you put in your PAYG variation? What was the response from the ATO as to your new tax rate?

 

[Mry]

Without looking at all the figures, hard to tell.

If you want to see how your pay should look, its worth plugging your old taxable income and new taxable income estimate into the ATO PAYG withholding calculator at http://www.ato.gov.au/scripts/taxcalc/calc_standard_hire.aspx and seeing if it works out to a difference of $1,976 or thereabouts for the year.

 

[tobe]

Does this sound right?

I earn $100500 per year, I salary sacrifice $13,798 in super and deprecate $8500 in an IP. Now with my pay under $80k I thought I would see a reasonable change in my pay with PAYG system however my tax has only reduced around $38 per week does this sound right?

Its hard to decifer from the figures provided. To work out your tax, you need to work out your taxable income, which is your salary ($100,500?) plus the gross rent (not specified??) minus all of the deductions (salary sacrifice, depreciation we know, what about interest costs, real estate management etc etc). Once you have those figures, you can determine what your new tax rate and amount is. However, your employer wont withhold less without a PAYG variation. You will have to wait until the end of the tax year and your tax return otherwise.

 

[Jenko]

Thanks for the feedback guys.. I think i have found where I went wrong, I have been increasing my super payments over this financial year which had been reducing my tax before the $38 came into the equation. Going over my pay slips it looks like my pay has increased around $100 over the last 8 months.