Tax question for Australia, tax rate applied to contractors?

Question

hey there

I am contracting through various recruitment agencies and I notice some differences in the way they debit taxes out of my weekly pay.

My previous contract used a flat rate of approximately 20% on all my gross earnings.

My current contract uses a variable rate of approximately 27%. My gross hourly rate is $50 but my net hourly rate fluctuates from $32 to $37!!!

Their answer has been that because I sometimes work part-time, I can fall in different salary ranges and therefore different rates. Fair enough but why then was it different for my previous contract (I was sometimes working part-time too)?

I just want to know where I stand and where I can find information so that I lodge my tax return properly. I am new to contracting and wouldn't want to pay too much tax if I don't have to.

Many thanks!

Answer 1

Too many questions, too many issues, too many variable answers. You need to see a tax accountant to do this. If you're this confused, and don't know about the concept of taxable income, then you cannot possibly do your own tax return and understand your eventual tax position.

Sorry, but I'm doing you a favour in not even attempting to give you an answer that you'll just misunderstand and use to make a mess of your affairs with. You're a professional in what you do. Others are professionals in what they do. Would you expect a tax accountant to work out what you do and be able to do it from a Yahoo Answer? No :)