[Wishing2011]

Hi everyone, I’m just trying to work out my budget while I am off on mat leave later this year and am trying to work out an estimate of how much I will get back from the govt paid mat leave after tax. For those of you that know how to work it out can you please help me

[gemgirl]

As far as I know, it depends on your tax rate, so no one can work it out for you, really, as everyone will have a different rate

[katiebear26]

try http://www.ato.gov.au/scripts/taxcalc/calc...ndard_hire.aspx to calculate based on your circumstances :-)

[Wishing2011]

isn't that tax calculator to calculate the tax I'm paying on my current wage?? Does the Govt Paid Mat leave tax rate get charged on my current tax rate?? I'm really confused...

IS there anyone out there currently receiving it that can help me work it out..

I'm assuming the current minimum wage is now approx $608.. From what I read on the medicare site, if you don't have a job (which I may not have) when I have bub you will get taxed at a rate of 25%.. So does this mean I may be getting in the hand $454.80 per week? If I do go on mat leave I will not be entitled to paid mat leave from work so I will be reyling on this as well as my husbands income..

This post has been edited by Wishing2011: 10/01/2013, 01:12 PM

[Tenacious C]

Generally PPL is paid into your account by your employer - the amount of tax witheld will depend on the tax rate your employer applies, whether you have a HECS/HELP debt etc. the tax rate applied would also be effected by whther you are taking paid leave from work at the same time. For example it is possible to have PPL paid at the same time you are utilising annual leave, long service leave etc.

There are circumstances where Centrelink will pay PPL into your account, but this is not the norm.

So it is really difficult for someone to work it out for you as our circumstnaces may not be the same and we do not know what your taxable income for the financial year will be and whether you have a HECS/HELP debt.

[robot sm]

To estimate mine, I just applied my current tax rate to the $608 - I figured it out from a recent payslip. It's just an estimate but was helpful for a rough budget.

[mummacat]

I know my employer continued to tax me at the same tax rate I was on when I was working during my paid parental leave period. This just meant I got a larger tax return and timing wise it working out well for us as it was like a forced saving. I recommend that you talk to your payroll department to see what their policy is and how they will calculate your tax for the period.

[MrsLexiK]

If you are on a higher tax bracket you will be taxed at that rate for mat leave, if you are on the lowest one you will be taxed at that one. If you are taxed to much you will get it back at tax time. That is for an employer. It could well be that if the govt is paying it (in cases where you have a contract or have been made unemployed but still meet the test) they may tax you at 25% to ensure you do not end up with a tax debt at the end of the year. Remember if you are not taxed enough there will be a tax debt.

[Wishing2011]

I'm currently contracted so I don't know if they will keep me on. They are talking about making me permanent but if they find out I am pregnant they might not. My contract ends in June so I may not have an employer. I have no HECS debts. if it is as simple as applyign my current tax rate then that's fine. I just have no idea how to work it out.. they dont make it easy for you to work out.. Should I call centrelink maybe?

thanks ladies if it is as simple as working out my current rate then I will work with that for now

[winterbabies]

It depends on how much you will earn in that week as to what the tax rate will be.
For example, if you choose to be paid the PPL at the same time as Maternity leave payments from your employer, then you will pay more tax than if you take the payments once your employer payments finish. Tax is calculated on the amount you earn in the payment period and adjusted accordingly- it is not calculated on how much you may earn for the year.

So, if you are only receiving the PPL in a payment period then you will pay a very small amount of tax, the calc previously posted can help you work this out.

Whichever way you take it though, your tax will be corrected when you do your return.