Wednesday, July 27, 2011

Snork Maiden's Taxes 2010-2011

Time for the annual report on Snork Maiden's taxes. For some reason, these are some of my most popular posts. For comparison here is last year's report. I can't actually submit her return until I do my taxes which won't be for a while (I need to gather a lot of tax statements from investments first). This is because they are now requiring full details of a spouse's income in order to avoid paying the Medicare surcharge. This is an extra 1% tax on total taxable income for household's earning more than $A146,000 a year who don't have private health insurance. Our income for the 2010-2011 tax year was about $A120,000 but we need to prove that.

Compared to last year salary (after superannuation (retirement) contributions rose by 3.3%. Distributions of Australian income from managed (mutual) funds almost doubled but foreign income fell a little. She had about double the amount of unrefunded work expenses. As a result, taxable income was up 3.0%.

The amount of tax due in last year's post is wrong. In fact, tax due rose by 2.7%. This year's tax refund should be $A633 compared to an actual refund of $A203 last year. The estimated tax rate is slightly down at 22.11% of taxable income. There are no state income taxes in Australia so this federal tax is the total income tax.

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