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government paid parental leave and tax question


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10 replies to this topic

#1 maryanneK

Posted 07 December 2018 - 07:46 AM

can anyone give me a simple answer to how much I will take home with the govt minimum wage PPL for 18 weeks?

I think the minimum wage is currently about 700 a week and I am now on unpaid leave from work with govt PPL about to start. It is paid through my employer

my question is how much tax will be withheld? I assume that tax will be witheld by my employer  and that the rate withheld will be only based on receiving the minimum wage for that period? Or does my income for the rest of the financial year affect how much of the PPL will be withheld?

I'm finding it hard to work it out too because the PPL is paid by the govt to my employer in a couple of lump sums but I'm paid monthly so its hard to keep track of how much PPL has been provided to my employer, how much has been taken in tax and how much I will end up with

#2 Fossy

Posted 07 December 2018 - 07:53 AM

It’s around $620 a week when I received it last year. Your employer will pay it so you’ll get 4 x $620 per monthly pay.  If your marginal tax rate is higher than the minimum your employer should withhold more tax, if they don’t then you can request extra tax be withheld so you don’t get a bill.

HTH

#3 c.sanders

Posted 07 December 2018 - 08:00 AM

I think this website is brilliant:


https://www.paycalculator.com.au

#4 Logical nonsense

Posted 07 December 2018 - 08:39 AM

I just got my PPL payment for the first time, it took ages to be approved from Centrelink so it's been back payed to mid October. I got roughly $5700 & the ATO took about $700 in tax.

I'm payed by my employer as per their pay cycle so for me its fortnightly. I did get my payslip the other day in the post, old school, it says maternity leave & the amount they paid me & then the tax deduction. Have to wait to next Thursday to see what the pay is for fortnightly.

#5 Fresh Start

Posted 07 December 2018 - 08:43 AM

Your employer should withhold at your appropriate marginal tax rate based on all the income being paid.

They have to report it on your payslip and payment summary so you should be able to check with your payroll person.

#6 SplashingRainbows

Posted 08 December 2018 - 06:39 PM

If you’re paid weekly is $634/week after tax assuming no HECS and that you are claiming the tax free threshold.

$1,268 fortnightly using the same assumptions.

This is only the amount paid after the tax withheld by your employer.

The actual tax is calculated in your tax return at the end of the year and you will get a refund if they’ve withheld too much and have to pay if they’ve withheld too little.

#7 SplashingRainbows

Posted 08 December 2018 - 06:42 PM

 Fresh Start, on 07 December 2018 - 08:43 AM, said:

Your employer should withhold at your appropriate marginal tax rate based on all the income being paid.

They have to report it on your payslip and payment summary so you should be able to check with your payroll person.

Kind of. And I’m sure you know but for the benefit of those who aren’t in the system ...

If there is other income paid in that withholding period (eg month) then the withholding tables will factor that in.
However if there is other income in the year but not that pay period payroll will only take out the PAYG withholding set by the ATO based on you earning minimum wage.

#8 jessa86

Posted 08 December 2018 - 06:46 PM

I'm getting PPL right now and bringing home $1268.70 a fortnight.

#9 Fresh Start

Posted 08 December 2018 - 07:18 PM

View PostSplashingRainbows, on 08 December 2018 - 06:42 PM, said:

Kind of. And I’m sure you know but for the benefit of those who aren’t in the system ...

If there is other income paid in that withholding period (eg month) then the withholding tables will factor that in.
However if there is other income in the year but not that pay period payroll will only take out the PAYG withholding set by the ATO based on you earning minimum wage.

True I should have clarified it’s the marginal tax rate based on that month’s wage/salary.

#10 maryanneK

Posted 10 December 2018 - 08:31 PM

thanks all - that's exactly what I was wondering - whether the tax rate is just based on that period
for the period I am being paid PPL there is no other income from work so based on PPs it looks like I'll lose about 100 in tax per week and end up with about 630 from the 720 minimum wage before tax

thanks!

#11 JRA

Posted Yesterday, 07:15 AM

 maryanneK, on 10 December 2018 - 08:31 PM, said:

thanks all - that's exactly what I was wondering - whether the tax rate is just based on that period
for the period I am being paid PPL there is no other income from work so based on PPs it looks like I'll lose about 100 in tax per week and end up with about 630 from the 720 minimum wage before tax

thanks!

In the end it all comes out in the wash.  If your annual income is higher than the minimum wage, you will owe money at tax time. If it is less than annual minimum wage, you will get money back




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