The winter season’s in full swing but so is that other season: tax season. We’re doing a rundown of the requirements you’ll need for lodging your taxes and returns—starting with PAYG.
What is PAYG?
PAYG stands for Pay-As-You Go, which is a payment summary form that your employer prepares at the end of the fiscal year. Your PAYG summary is as vital to lodging tax returns as your TFN. It shows financial information like your income, tax, and superannuation. Your employer is obligated to give you a copy of your PAYG summary, as it is one of your requirements when you file your taxreturns.
Your PAYG summary may come in either of the followingtwo forms:
A payment summary: Your employer should provide you your payment summary by 14 July of the current year. It’s best to follow up with your employer beforehand, to know if they will be providing you with your payment summary or not. Because they do have the option not doing so (see below).
An income statement: If your employer has submitted his or her financial records to ATO, they may no longer be required to give you a PAYG summary (but try asking anyway!). Instead, you may request for a copy of your income statement that shows your earnings and the deductions made throughout your employment. However, because a PAYG summary is required for your tax returns, it would be smart to consult a registered tax agent for advice on how to proceed without it (and only having an income statement on hand).
More Employers Mean More PAYGs
If you’ve switched jobswithin the fiscal year, you’ll need to request for copies of your PAYG summaries from all your employers (both past and current). Make sure that your stated earnings are included. A little warning, though: it can get tricky and complicated at this point, and your past employer may have already submitted his or her financial reports to the Australian Taxation Office (ATO). Get advice from your local ATO office on how to proceed or seek advice or help from a registered tax agent.
The PAYG summary is often missed out by backpackers and working holiday makers—it’s so important we listed it in two previous posts: on lodging your tax returns and filing for tax claims. Then, it becomes frustrating for backpackers to find out (too late) that a PAYG summary necessaryfor lodging tax returns.
If you have the time and luxury of completing the process on your own, have at it! If not, and if you have more questions or would like more advice filing your tax returns, we’ll be here to help. Happy travels!