A tax question about superannuation?

Question

I had to request to withdraw my superannuation this year as I got sick and had to leave work. I paid $4,400 in tax because I was not of retiring age. I have not worked since that time. Does anyone know how much, if any, of this I could get back on my tax this year? I am in Australia. Thanking you in anticipation.

Answer 1

I am curious - I am guessing this was done under financial hardship? How much did you withdraw? $20,000+? I thought financial hardship has a limit of $10,000 for the lump sum amount? And the withholding is 21.5%? Or the Superannuation Provider did not have your TFN?

Anyway, that amount (which ever it is) will form your assessable income in your tax return. Your tax will then be calculated on this (and any other income that you have, for example interest in your bank accounts, dividends etc - not just salary wages).

The $4400 will be the "credit". The difference will be the refund.

This is the 2008 table (for Tax only)



$1 – $6,000 Tax Nil



$6,001 – $30,000 Tax 15c for each $1 over $6,000



$30,001 – $75,000 Tax $3,600 plus 30c for each $1 over $30,000



$75,001 – $150,000 Tax $17,100 plus 40c for each $1 over $75,000



$150,001 and over Tax $47,100 plus 45c for each $1 over $150,000

Add:-

My calculation maybe not accurate..  the tax and Medicare Levy will be $4459.50. Your refund should be the difference between what you have paid (the $4400 and the $1000) and this calculated tax and levy.

By the way - sorry to say this, but you really don't need an accountant to do an individual tax return. H & R Block people are not accountants - they are cheap (and I mean cheap!!), they are quick, their service is not bad and they can help people who have questions/troubles/difficulties with their individual tax returns. Go see H & R Block or ITP people instead.

Not trying to be a pain towards other accountants who pretend that they are better than H & R Block or ITP ( I am not a self-hating accountant) - but seriously, you don't go to Uni for 3 years plus another year or two doing a Post Graduate degree to do an Individual Tax Return (and overcharging the public by doing so). Stay away from accountants like that man! Unless you are running a business, unless the accountants helping you cracking the tax act - no point going to a CA or CPA firm just to do an individual tax return.

Answer 2

Too little information still. We will need to know the gross amount of the withdrawal and how much you earned in your job (gross and tax) from 1 July 2007 until the withdrawal. Even still this wouldnt be enough to get a 100% coreect calculation without getting too personal on this forum. Best see a good accountant, well worth the money given your circumstances.