+ Reply to Thread
Page 1 of 2 12 LastLast
Results 1 to 10 of 14
  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
    5,705
    Thanks
    1,696
    Thanked
    2,489
    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
    8,389
    Thanks
    3,090
    Thanked
    4,515
    Reviews
    8
    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
    8,389
    Thanks
    3,090
    Thanked
    4,515
    Reviews
    8
    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
    70
    Thanks
    3
    Thanked
    9
    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: 1
    Last Post: 22-02-2012, 21:54
  3. paid parental Leave & Maternity Leave - When to take them?
    By Missy2579 in forum Maternity & Parental Leave
    Replies: 11
    Last Post: 31-01-2012, 22:29

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
FEATURED SUPPORTER
Shapland Swim SchoolsSemi private learn to swim classes for a maximum of 3 children in specialized heated teaching pools. Our swim schools ...
FORUMS - chatting now ...
Sisters' WeddingIssues with Family Members
IVF babies due March/April/May 2018pregnancy and babies through IVF
Yummy MummiesMovies / Music / Books / TV Chat
Joyous June/July TTC! #2Conception & Fertility General Chat
looking for some help pleasePregnancy & Birth General Chat
Small Age GapGeneral Parenting Tips, Advice & Chat
Perth: Baby foot prints & keepsakesProduct Recommendations & Questions
Stat Dec re spouses intended leaveMaternity & Parental Leave
REVIEWS
"Made bed time less anxious"
by Meld85
My Little Heart Whisbear - the Humming Bear reviews ›
"Wonderful natural Aussie made product!"
by Mrstwr
Baby U Goat Milk Moisturiser reviews ›
"Replaced good quality with cheap tight nappies"
by Kris
Coles Comfy Bots Nappies reviews ›