By now, you probably know that there’s a difference between retirement income and investment income.
However, how do you figure out if your retirement tax has been deducted from your investment income?
As a result of the recent changes in the tax system, the government has announced that all income earned from retirement (including tax-deferred retirement income) will be taxed at the same rate as other income, with a special tax bracket for retirement income.
That’s great news for those who earn money for retirement, but it also means that, for most Australians, the amount they earn will be subject to the same tax rate as income earned in the previous tax year.
As a matter of policy, the Commonwealth is still taxing income earned by those who work for a company that is a member of the same Commonwealth service, as well as those who are employed by a business that is not.
In other words, the only income subject to this tax bracket is that earned by individuals, but if you own an investment property or business that’s owned by a Commonwealth service and earn income from that business, you’ll also be subject on the same basis to the taxation bracket that applies to your retirement assets.
It’s not all bad news.
For example, it’s possible to have an investment that’s subject to tax on the amount of its earnings, and then have that income be subject only to the tax bracket of your retirement asset.
But if that investment is in a property that’s not owned by you, the tax rate will apply to your investment only.
To be clear, there are some situations where you may be subject for tax on your investment, even if you aren’t a member or employee of a Commonwealth services business, such as if you make a taxable contribution to a non-profit, or if you invest your money in a stock investment.
However, the best way to determine if your taxes have been deducted is to check the GST and Deductions table.
This can be found in the top right hand corner of your tax return.
This shows how much you owe in tax on an amount you’ve paid for goods or services.
You can also see the amount you’re required to pay in tax by applying the GST/Deductions calculator.
In the table, the ‘Total GST/Debt’ column indicates the amount that’s being assessed.
The ‘Total Deduuctible’ column shows how your income has been assessed.
In this example, the total amount of GST/debt is $2,000, but the total amounts are $5,000.
So you owe $1,000 in tax.
The ‘Total Amount’ column is the amount in brackets, and the ‘Taxable’ column, is the GST or Deduptible.
For an example, a $1k investment that you invested in a company would be assessed a $20,000 tax.
However if you invested $500 into a company with a tax rate of 25%, you would only owe $25,000 GST/tax.
In addition to the GST, there’s also the tax on interest.
This is known as ‘Interest’, and the interest rate you’ll pay is based on your income.
It can range from a lower rate of 10% to 20%.
This is the key to knowing if your tax has ever been deducted, and how much is due.
To find out more about your GST/DPT and tax liability, you can use the Deduption calculator below.
Once you’ve found out how much your tax bill is, you need to check whether you’re subject to any tax on any of your investments.
You’ll need to do this by checking the appropriate box in the ‘Depreciation’ section of your GST or DPT return.
If your tax amount has been reported as ‘depreciable’ on your GST return, you may have to pay a penalty.
The maximum penalty you’ll be assessed for this is $10,000 if you owe more than $100,000 on a tax return and $5 for any other income.
If you haven’t made a GST/dpt payment in a tax year, you should contact your tax office to check if any tax has yet been deducted.
If, after you’ve received your GST refund, you still have questions about whether you are being taxed, contact the Australian Taxation Office on 1300 778 880 or call the online form.