- "A pay rise into a higher bracket means I take home less."
- No. Only the dollars above each threshold are taxed at the higher rate. You always keep more of a pay rise than you had before it.
- "A tax deduction means I get the whole amount back."
- No. A $1,000 deduction cuts your tax by $1,000 times your tax rate, for example $300 at 30%, plus Medicare levy.
- "Everyone gets a standard $300 work deduction with no receipts."
- There's no automatic claim. You can claim up to $300 of work expenses without written evidence, but you must have spent it and be able to show how you worked it out.
- "Super is too far away to worry about."
- Small extra contributions in your 30s and 40s have decades to grow. And carry-forward rules give you a five-year window to catch up.
- "I can't touch my unused cap once the year is over."
- If your balance is under $500,000 you can use unused concessional cap for up to five years. See catch-up contributions.
- "Losing money on a property is good because of the tax back."
- A loss is still a loss. The deduction only gives back part of it. The property has to grow enough to make up the difference.
- "I'll wait until the market drops to invest."
- Nobody times it reliably. Missing a handful of the best days can cut long-term returns a lot.
- "An ETF is always low-risk."
- An ETF is a wrapper. What's inside decides the risk. A broad index ETF and a leveraged or narrow theme ETF are very different.
- "A big refund means I'm doing well."
- It means too much tax came out during the year. That's your money back, not a bonus.
- "I don't need to lodge if I earn under the threshold."
- If tax was withheld from your pay you may still need to lodge, and you could get a refund. If you don't need to lodge, tell the ATO with a non-lodgment advice.