Jump to content

Tax on overtime

  • Please log in to reply
15 replies to this topic

#1 2 Gorgeous Girls

Posted 21 February 2013 - 06:48 PM

I'm hoping someone can help me out here before I make a fool of myself to payroll.

We have been flat out at work and so the past couple of pay cycles I have been doing overtime. Both times I seem to have been taxed really highly and I don't know why.

I normally get taxed according to the fortnightly tax tables, but with the overtime they don't seem to be using them. I'm getting taxed somewhere between the tax free threshold amount and the no tax free threshold amount.

Last fortnight I earned an extra $140 gross from overtime. I got an extra $14 in my pay packet after tax. I was effectively taxed $126 out of that $140. I have no idea why?

Google doesn't seem to be helping me either.

Combined with the fact that it pushes my gross earnings over the limit for SPP I have become one of those mythical creatures that is worse off for working more!!

Can anyone shed some light the reason for this taxing. I want to help the company out when needed but to lose money from doing overtime (which is paid at time and a half) is just preposterous!

#2 Iwantitall

Posted 21 February 2013 - 06:58 PM

If you earn that much extra every week would it put you in another tax category?  If not they should only be taxing you your normal percentage.  My Dh quite often does overtime (around $300 worth a FN). And still only gets taxed his normal rate as he is still in the same bracket ?  The next bracket starts at $80000 for him

#3 2 Gorgeous Girls

Posted 21 February 2013 - 07:02 PM

I thought about that but I am no where the next bracket of $80,000 and even if I was surely the tax tables would still account for that right?

#4 Lees75

Posted 21 February 2013 - 07:04 PM

Is the overtime putting you over the HECS threshold?

#5 jmaz86

Posted 21 February 2013 - 07:04 PM

Not an expert by any means, but if you have checked the fortnightly tax table against the gross amount and the amount of tax they are taking out does not seem correct to you then I would simply speak to payroll and ask them to clarify because you are confused.
I am sure they wont think any less of you, and perhaps if they are making an error it may not be affecting just you but other staff as well.

#6 jmaz86

Posted 21 February 2013 - 07:05 PM

QUOTE (Lees75 @ 21/02/2013, 08:04 PM) <{POST_SNAPBACK}>
Is the overtime putting you over the HECS threshold?

Didnt think of this...I used to get commission and because I had elected on my tax file dec for my employer to take out hecs I used to once a month get more taken out as I was being put over the threshold.

#7 2 Gorgeous Girls

Posted 21 February 2013 - 07:09 PM

QUOTE (Lees75 @ 21/02/2013, 07:04 PM) <{POST_SNAPBACK}>
Is the overtime putting you over the HECS threshold?

Of course! I knew getting an education was a bad idea...  wink.gif

Thank you so much!

#8 The Falcon

Posted 21 February 2013 - 07:15 PM

If it is only occasionaly overtime them think of it as savings... it would be unlikely to put you over the hecs threshold for the year so you will get a nice refund when you lodge your tax return  original.gif

#9 Alacritous~Andy

Posted 21 February 2013 - 08:26 PM

QUOTE (kate789 @ 21/02/2013, 07:15 PM) <{POST_SNAPBACK}>
If it is only occasionaly overtime them think of it as savings... it would be unlikely to put you over the hecs threshold for the year so you will get a nice refund when you lodge your tax return  original.gif

I'm sure someone will correct me if I'm wrong, but I don't think you get refunded HECS repayments at tax time, even if you are under the threshold.

#10 ceeshell

Posted 21 February 2013 - 08:37 PM

QUOTE (Alacritous~Andy @ 21/02/2013, 09:26 PM) <{POST_SNAPBACK}>
I'm sure someone will correct me if I'm wrong, but I don't think you get refunded HECS repayments at tax time, even if you are under the threshold.

You do. I have HECS taken out of my pay and get it back at tax time because I don't earn over the threshold annually.

#11 OscarAndTilly

Posted 22 February 2013 - 02:28 PM

Yes it will get refunded at tax time if your annual income isn't over the threshold

#12 niggles

Posted 22 February 2013 - 02:31 PM

This has happened to me many times. Payroll look at how much you earn in that fortnight and withhold an amount of tax as if you earnt that much all year. Because you then don't end up in the higher bracket, you get a tax return.

#13 niggles

Posted 22 February 2013 - 02:32 PM

I'm not sure if I've explained that well. What I mean is even though you won't end up earning over $80k (if that's the next bracket), if you earnt the overtime amount every fortnight then you would end up in that bracket. So for that pay, they take out tax at the higher rate.

#14 Grant Me Wings

Posted 22 February 2013 - 02:40 PM

QUOTE (OscarAndTilly @ 22/02/2013, 03:28 PM) <{POST_SNAPBACK}>
Yes it will get refunded at tax time if your annual income isn't over the threshold

But if you do end up going over the threshold you will probably end up with a bill.

Something to be cautious of if you do a lot of overtime or are borderline on the threshold.

#15 PrincessPeach

Posted 22 February 2013 - 02:41 PM

With the HECS, the extra amount your employer takes out each week does not get paid off your HECS Debt.

It simply allows for the fact that your annual HECS repayment amount is calculated when you lodge your income tax return. The HECS payments are not made until you lodge that tax return.

As for the original problem, they amount they should be withholding should be similar to what is on the fortnightly tax tables, so to me, holding that much of your overtime sounds extreme. However if they have held too much, you will get it back when you lodge your tax return.

#16 Grant Me Wings

Posted 22 February 2013 - 02:53 PM

The threshold is $49,096 and if you go over that you pay 4% of your total earnings in hecs.

The PP is correct that it isn't paid until you do your return, it is just withheld to alloow for it, but when you are put over by overtime they (unless you have asked them to take out additional) wont normally have deducted enough through the year to cover the 4%.

Edited by WinterDancesHere, 22 February 2013 - 02:55 PM.

1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users


Newborn baby found in a nativity scene

Police are trying to trace a woman who abandoned a baby boy in the manger of a church nativity scene.

Life would be harder without my kids

The Humans of New York Facebook page is well known for sharing touching, real stories from one of the world's biggest cities – and it's just hit the heart of parents everywhere.

Mum dresses as Wonder Woman for last day of chemo

A Brisbane mum dressed up as a superhero to celebrate the end of her chemotherapy and created a moment her family will remember forever.

How a raisin can predict a toddler's IQ

All you need to assess a child's future intelligence is a plastic cup and a raisin, according to new research.

Former Hi-5 member's cannabis hope

Former Hi-5 star Tim Harding hopes a cannabis-derived drug will help control his daughter's epilepsy, which sees the four-year-old suffering between 50 and 100 seizures a day.

The top 5 reasons your toddler throws a tantrum

Whilst to the outside world little people may appear to have it easy, it's actually not always the case – just ask any toddler who's had their toast cut up the wrong way.

Glenn McGrath thought he'd lost his wife and baby

Australian cricket ledged Glen McGrath has spoken about the moment he thought he might lose his wife, Sara and their baby daughter, Madison.


Inside my Centrelink nightmare

Mother Bec Smith has been trying for months to access Centrelink payments. A "serious error" is preventing her.

Warnings over push for hourly childcare billing

Australia's peak childcare body has called for caution around the Turnbull government's push for childcare centres to charge parents by the hour, not by the day.

Cate Blanchett thought about adopting for years

Cate Blanchett says her recent adoption of a baby girl had nothing to do with wanting a daughter after having three sons.

Kate Walsh: 'I can't have kids'

Grey's Anatomy star Kate Walsh has revealed she is unable to have children because she has experienced early menopause.

The parasite that could boost fertility

The Tsimane women of Bolivia are often revered as among the most fertile in the world - on average having 10 children in their lifetimes -- but some are even more fertile than others.

Family may sue cousin over genetics

A Melbourne couple is suing the Royal Children's Hospital for failing to diagnose a genetic disorder in their first child - an error they allege caused them to have another child with severe disabilities.

Strange things mums have done in labour

While most women in labour focus on the upcoming birth of their baby, some women do more interesting things.

Michael Clarke reveals baby's name

When Michael Clarke said he was wrapped around the finger of his little princess, he wasn't joking.

The logistics of breastfeeding twins

Our life is more or less divided into neat four hour parcels of time and it's hard to get much of anything done in the time between feeds.

How to stop people ruining Christmas

We can make a conscious effort about how we react to those curly Christmas day scenarios that can send us up the wall, or should we say chimney.

Lots of formula offers for desperate mum

The mum who was down to her last three tins of baby formula said she had received hundreds of calls and offers to send her formula.

Surviving breast cancer while pregnant

It was last thing Rebecca O'Donnell expected at 30 weeks' pregnant. One morning, while putting on her bra, she felt a pea-sized lump in her right breast.

Cot sheet brands for the nursery

With so many awesome cot sheet options these days, we thought we'd put together a list of go-to brands for you to seek out for your baby's bed.


What's hot on EB

How I survived breast cancer while pregnant

It was last thing Rebecca O'Donnell expected at 30 weeks' pregnant. One morning, while putting on her bra, she felt a pea-sized lump in her right breast.

Grieving father's letter to Bataclan terrorists: "...this little boy will threaten you by being happy and free"

A grieving father whose wife was killed in the attacks on the Bataclan Theatre last weekend has written an open letter to her killers.

5 challenges of motherhood - and how to see them differently

Despite the smiles, the sloppy kisses and the pure magic children bring to our lives, it's hard to deny that motherhood can be tough.

4 challenges of being a new dad - and how to face them

Becoming a parent is challenging – and that applies to both mums and dads.

My battle against antenatal and postnatal depression

I was five months pregnant when I realised I needed help.

Children swapped at birth will not be returned to biological parents

A boy and girl accidentally swapped on the day they were born will stay with the families who have raised them, a South African court has ruled.

A quarter of men believe they get 'man periods'

A British study has revealed one in four men believe they have a monthly cycle.

Baby deposit

How much do you need to save for a 'baby deposit'?

It's fairly straightforward to calculate a house deposit, but how much money do you need to save up for a baby?

Dad's beautiful note to his wife, a nurse

To anyone else it might just look like a picture of a mum having a nap with her toddler.

'I was a complete schmuck': Mike Baird opens up about his wife's postnatal depression

When his wife Kerryn was not well following the birth of their daughter, NSW Premier Mike Baird buried himself in his work.

Mum's desperate plea as whooping cough alert issued

A desperate mother has shared a heart-breaking video of her baby struggling to cope with a coughing fit caused by pertussis.

Coffee could help you live longer

New US research found people who report drinking three to five cups of coffee a day are less likely to die prematurely from heart disease, suicide, diabetes or Parkinson's disease.

The joy and dread of playdates

To live vicariously through your child is to rediscover anxieties you thought dead and buried.

Sick baby could die without scarce special formula, mum says

Lizzie Cann is down to her last three tins of a special formula in short supply.

Adorable toddler's strop foiled by squeaky shoes

We're probably all familiar with the pouty bottom lip and tightly crossed arms of a tot mid-strop.

More sex during World Cup created more baby boys

More sex during South Africa's World Cup meant a disproportionately high number of boys were born nine months later, a new study has found.

Win one of two ABC Shop prize packs in time for Christmas

What a boon it would be to have your toddler's Christmas gifts covered this year. We have two awesome ABC Shop prize packs to give away to two lucky winners.

Do fitness challenges really work?

Fitness challenges aren't new. There's Michelle Bridges 12WBT and a bunch of other programs if you really want to lose weight.

What are pregnant women Googling?

Pregnancy is a huge change for any woman, so it's natural we'll have questions - and turn to Google to ask them.



Can't decide?

Check out the Essential Baby Names section for some inspiration

Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.