+ Reply to Thread
Page 1 of 2 12 LastLast
Results 1 to 10 of 16
  1. #1
    Join Date
    Mar 2012
    Posts
    34
    Thanks
    1
    Thanked
    1
    Reviews
    0

    Default Tax on paid parental leave?

    Just wondering if I will pay more tax on my paid parental leave as it apparently can take 6-8 weeks and will be back paid as one amount through my employer?
    Also do you pay more tax if you get it paid through your work or from centrelink. I was earning 40k so think I was paying $97 a week tax.

  2. #2
    Join Date
    Jan 2010
    Posts
    5,554
    Thanks
    1,602
    Thanked
    2,360
    Reviews
    6
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts

    Default Tax on paid parental leave?

    You pay the tax rate (%) that you were on when you start mat leave. It gets balanced out at tax time. It makes no difference whether you get it in a big chunk or not, the percentage is the same.

  3. #3
    Join Date
    Mar 2012
    Posts
    34
    Thanks
    1
    Thanked
    1
    Reviews
    0

    Default Tax on paid parental leave?

    Oh good, thank you

  4. #4
    Join Date
    Jan 2012
    Posts
    7,361
    Thanks
    2,565
    Thanked
    3,781
    Reviews
    7
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts

    Default Tax on paid parental leave?

    Quote Originally Posted by Cue View Post
    You pay the tax rate (%) that you were on when you start mat leave. It gets balanced out at tax time. It makes no difference whether you get it in a big chunk or not, the percentage is the same.
    I actually asked about the tax rate on Facebook recently and I had 2 friends confirm that it is taxed at the minimum tax rate. Otherwise anyone who is paid above minimum wage would be clearly overtaxed and would just get it back at tax time, which doesn't really make sense when you could just be taxed properly from the start...

  5. #5
    Join Date
    Sep 2009
    Posts
    899
    Thanks
    297
    Thanked
    112
    Reviews
    1
    Achievements:Topaz Star - 500 posts

    Default Re: Tax on paid parental leave?

    It's automatically taxed at 15% unless you request a different rate.

  6. #6
    Join Date
    Mar 2012
    Posts
    468
    Thanks
    26
    Thanked
    61
    Reviews
    0

    Default Tax on paid parental leave?

    This may be the case if you're having a whole financial year off but if your pml starts in jan and you've already worked 6 months then you could find yourself with a bill if you only pay 15% on it? I think it would depend on when you start your leave and how long you have off?? And what tax bracket you fall into?

    Quote Originally Posted by JR03 View Post
    I actually asked about the tax rate on Facebook recently and I had 2 friends confirm that it is taxed at the minimum tax rate. Otherwise anyone who is paid above minimum wage would be clearly overtaxed and would just get it back at tax time, which doesn't really make sense when you could just be taxed properly from the start...

  7. #7
    Join Date
    Jan 2012
    Posts
    7,361
    Thanks
    2,565
    Thanked
    3,781
    Reviews
    7
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Quote Originally Posted by greenfairy View Post
    This may be the case if you're having a whole financial year off but if your pml starts in jan and you've already worked 6 months then you could find yourself with a bill if you only pay 15% on it? I think it would depend on when you start your leave and how long you have off?? And what tax bracket you fall into?
    Why is that; if your employer has been taxing you properly on your pre-parental leave pay, why would you get a tax bill?

  8. #8
    Join Date
    Aug 2012
    Posts
    67
    Thanks
    2
    Thanked
    8
    Reviews
    0

    Default Re: Tax on paid parental leave?

    Yes I'm also confused on this my tax a fortnight is about 400 and then hecs on top of that. So if I get taxed that and my hecs comes out I'd only be getting about 750 a fortnight. I have worked out my finances based on that assumption and I guess if it is that way I'll get compensated at tax time but I think it sucks I have to wait until then especially as my leave will have the majority at the start of next financial year but if that's the way it is I guess I will deal with it. I expect my hecs to be taken out but think its a bit unfair that I still pay 400 in tax when I'm getting paid significantly less than I do now.

    Sent from my HTC Desire HD A9191 using BubHub

  9. #9
    Join Date
    Mar 2009
    Posts
    1,694
    Thanks
    260
    Thanked
    220
    Reviews
    0
    Achievements:Topaz Star - 500 posts
    Im pretty sure I read somewhere that if it's paid by centrelink it will be paid at a standard rate (not sure what that was) unless you request them to do it at another rate.

    I'd ring centrelink and ask

  10. #10
    Join Date
    Jul 2011
    Location
    Melbourne
    Posts
    5,005
    Thanks
    1,052
    Thanked
    3,524
    Reviews
    1
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts

    Default Tax on paid parental leave?

    If you only pay 15% tax on PPL but your earnings for the year push you into a higher tax bracket you'd get a bill I think?

    DH always gets a bloody bill because of work shares he was given. He has to pay to own them - how is that a good thing?! And he doesn't get to keep them all if he quits. Sorry to digress!


 

Similar Threads

  1. Paid parental leave
    By The sooper nanny in forum General Chat
    Replies: 6
    Last Post: 11-07-2012, 07:51
  2. Paid parental leave
    By Missy2579 in forum Maternity & Parental Leave
    Replies: 2
    Last Post: 22-02-2012, 20:54
  3. paid parental Leave & Maternity Leave - When to take them?
    By Missy2579 in forum Maternity & Parental Leave
    Replies: 11
    Last Post: 31-01-2012, 21:29

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
free weekly newsletters | sign up now!
who are these people who write great posts? meet our hubbub authors!
Learn how you can contribute to the hubbub!

reviews
learn how you can become a reviewer!

competitions

forum - chatting now
christmas gift guidesee all Red Stocking
Softmats
With so many amazing reversible designs, the soft and cushioned Premium Bubba Mats are the perfect space for all the family. Not only do they look fantastic; you can also enjoy the quality and comfort for years to come.
sales & new stuffsee all
Pea Pods
Buy 2 Award Winning Pea Pods Reusable One Size Nappies for only $38 (in your choice of colours) and receive a FREE roll of Bamboo Liners. Don't miss out, we don't usually have discounts on the nappies, so grab this special offer!
Special Offer! Save $12
featured supporter
The Health Hub & Glowing Expectations
Glowing Expectations is conveniently located at The Health Hub in Darlinghurst. We offer pre & post natal personal training, small group pregnancy exercise classes, flexible mums & bubs sessions, massage, & naturopathy in our air-conditioned studio.
gotcha
X

Pregnant for the first-time?

Not sure where to start? We can help!

Our Insider Programs for pregnancy first-timers will lead you step-by-step through the 14 Pregnancy Must Dos!