Personal Tax

How to calculate personal Gross taxable income for the average Australian is fairly difficult, it can be very difficult for a skilled accountant at times depending on the complexity of the individual finances.

Our New Prosperity service empowers you to manage your tax position through out the financial year, giving you a forward estimate of your tax position with respect to the 30th June.

Receiving your pay slip allows you to keep track of year to date tax situation and many other related tax issues and items on your pay slip, but your pay slip only relates to your current employer ! 

Tax for you personally can become quite hard to keep track of, if you have a part time job or a second and third source of income like interest from a bank account and especially if the bank account is owned jointly. When considering these separate issues in a relatively simple tax situation, it becomes hard to manage the amount of tax and to keep tabs on the end of year position, for you and your partner. 

Gross taxable Income is the term used by accountants to define the point at which the tax bracket percentages are applied to your total taxable income inorder to calculate the level of tax you must pay for any given tax year. This figure is used to set the level of Medicare levy and then Medicare surcharge is applied if applicable. Many of the Australian taxation offices offsets and rebates are based on this figure as the premise by which the level of rebate or offset you are entitled to.

NB:

New Prosperity does not calculate all of these taxation offsets available from the ATO, but we do forecast your Gross taxable Income EOY, so by the time your are preparing your tax return in a retrospective manner and then confirmed with all your supporting receipts and EOY statements, you or your accountant can apply for what is due to you by way of taxation offset or rebate entitlements.

The most important thing is New Prosperity empowers you to understand your tax position prior to the end of the financial year so you can do some tax planning if required before June 30th to maximise your entitlements. 

SCENARIOS:

Once all information is inputted, this is when New Prosperity becomes empowering to you. At this time you can model scenarios, look at impacts of different tax strategies through out the financial year.

A simple one is investigating the tax benefits of Salary sacrifice and benchmarking this against your Annual surplus each year. Investigating the impact of tax on your wealth building aspirations is one of the more important issues you should consider in any financial decision made in your home every time.