Warning: This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
In the 2011-12 income year, your payer must withhold additional amounts for your Financial Supplement debt when your payments reach $907 or more per week. We can provide tax tables to show you the additional amount that will be withheld from your payments.
The tables below show sample figures taken from the weekly and fortnightly tax tables for 2011-12.
Weekly income
|
Weekly SFSS tax component
|
Fortnightly income
|
Fortnightly SFSS tax component
|
$907
|
$18.00
|
$1,814
|
$36.00
|
$1,114
|
$33.00
|
$2,228
|
$67.00
|
$1,581
|
$63.00
|
$3,162
|
$126.00
|
The additional amounts withheld by your payer are to cover any compulsory repayment that may be calculated on your notice of assessment. The additional amounts withheld are not credited to your Financial Supplement account throughout the year, but form part of the 'total tax withheld' on your annual PAYG payment summary. Your payer will provide you with this summary at the end of each income year.
When you lodge your tax return, we calculate the amount of income tax, Medicare levy and compulsory repayment to be paid, based on the information in your tax return. You will receive a credit for all the amounts withheld during the year. They are shown on your notice of assessment as 'PAYG credits and other entitlements'.
If you had too much withheld during the year and you have no other outstanding debts, we will refund the excess to you.
The compulsory repayment shown on your notice of assessment is credited to your Financial Supplement account on the date your tax return is processed. This date may be different to the issue date on your notice of assessment.
Example: Additional amount withheld
Keith has a Financial Supplement debt of $5,700. In the 2010-11 income year, Keith earned $2,614 per fortnight. His payer withheld an amount of $656 each fortnight ($578 for income tax and the Medicare levy plus $78 for SFSS). At the end of the income year, Keith received his annual PAYG payment summary showing he had received gross payments of $67,964 and had $17,056 withheld from his payments.
On 12 July 2011, Keith lodged his 2010-11 tax return. As well as the income from his job, Keith received interest of $200 from his bank account. He also claimed a deduction of $100 for gifts to charity and $300 for work related expenses. With interest and deductions included, Keith's total taxable income was $67,764.
On 25 July 2011, Keith's tax return was processed. His notice of assessment issued on 29 July 2011. It looks like this:
Notice of assessment
Income Tax Assessment Act 1936 and Income Tax Assessment Act 1997
Description
|
Debits $
|
Credits $
|
Your taxable income is $67,764.00
|
|
|
Tax on your taxable or net income
|
13,879.20
|
|
Assessed tax payable
|
13,879.20
|
|
Plus other liabilities
|
|
|
Medicare levy
|
1,016.46
|
|
Compulsory Financial Supplement repayment
|
2,032.92
|
|
Less PAYG credits and other entitlements
|
|
17,056.00
|
Result of this notice
|
|
127.42 CR
|
Keith had more than enough withheld during the year, and receives a refund of $127.42. The compulsory repayment of $2,032.92 (that is 3% of $67,764) was credited to Keith's Financial Supplement account on 25 July 2011, the date his tax return was processed.
Sections within Financial Supplement debts and pay as you go
Last Modified: Monday, 26 September 2011