Wages & Tax

WAGES

Wages are basically the money that you get in return for your work.
Do you know what you should be paid? Before you start your job, there are a few things you should find out:
Are you covered by the state or national system?
Are you covered by an award or agreement?

Rates of pay

Your basic rate of pay can change depending on things like your age, job classification, what pay scale you’re covered by and your award or workplace agreement.You may also be entitled to other allowances or loadings (this means extra pay), depending on what you do, eg. if you’re a casual, you get what’s called a casual loading of usually between 20 – 25%, because you are not entitled to sick or annual leave.

Payslips

If you have a job, you must get a pay slip. You should get your pay slip within 1 day of getting your pay.

For heaps more info on wages and work conditions check out this great website:
http://www.fairwork.gov.au/Pages/default.aspx

TAX

When you start employment, your employer will ask you for your Tax File Number or TFN, and to fill out an employment declaration form for tax purposes. Every person in Australia who receives income from an employer, or a business, or Centrelink is required to have a TFN. You can get a Tax File Number from the Australian Taxation Office, who collects tax from all adult Australians on behalf of the government. The government then uses this money to pay for things like healthcare, roads and schools. It is important to give your employer your Tax File Number otherwise tax will be taken out of your pay at a much higher rate. You can get a tax file number by filling out a form available at Post Offices, or by applying here:

https://smarteform.com.au/onlineforms/ato/tax-file-number-application-or-enquiry-for-individuals/

The first $18,600 you earn in a year is tax free (no tax removed from your pay) and is called the “tax-free threshold”. You will be asked on your employment declaration form whether you would like to claim the “tax-free threshold” for this employer – your answer will be YES if this is your only employer. If you have two jobs, it is better to claim the tax-free threshold from the employer who gives you the most hours or pay.

If you are studying as well, and have a HECS-HELP (Higher Education Loan Program) debt, you may elect to have more money taken from your tax to pay for this debt. You may not chose to do this if you are earning under $2000* a fortnight, as you only have to start paying back a HECS-HELP debt once your annual income reaches a certain level. *This level changes from year to year so it is worth checking for more information at: http://studyassist.gov.au/sites/studyassist/payingbackmyloan/loan-repayment/pages/loan-repayment

Need Help? Check out:

1. Find out how much tax you need to pay
2. TAX HELP – If you need help lodging your tax return, you may be eligible for the Tax Help Program.Tax Help is a network of ATO-trained and accredited community volunteers who provide a free and confidential service to help people complete your tax returns online using myTax.