Question 1

What is PAYG withholding?

Accepted Answer

PAYG (Pay As You Go) withholding is the system where your employer deducts tax from your wages each pay period and sends it to the ATO on your behalf. The amount withheld depends on your income level and whether you claimed the tax-free threshold.

Question 2

Why is too much tax withheld from my pay?

Accepted Answer

Common reasons include not claiming the tax-free threshold on your TFN declaration, having multiple jobs without adjusting withholding, or your employer using the default higher rate. Review your TFN declaration form with your employer.

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