Call us on 1300 794 893

Your Money

Fast food, fast tax facts

My son is at uni and has a job at McDonald’s. He wants to know if he’ll have to pay tax and if he will get super. I’m no tax expert – can you please help?

First, working at McDonald’s can be one of the greatest decisions a kid can make. Many employers like to employ ex-Macca’s staff as they have been taught about systems, teamwork, customer service, etc.

On the tax question, the Australian Taxation Office (ATO) has a tip sheet on students and tax. Will he pay tax? The answer is yes, but he could have it all refunded if he doesn’t earn over the threshold – $6000 – where tax cuts in. Odds are he will pay tax.

He’ll need a tax file number. It’s not compulsory, but without it, you can’t defer higher education fees, receive the Youth Allowance, Newstart or Austudy.

He’ll need to do a tax return and there could be deductions he can claim. Encourage him to get into tax early. So many people have lost a fortune over a life of paying taxes and not knowing how they can reduce their tax legally.

The ATO website has good information for someone who wants to become a personal tax expert. You get super if you’re over 18 years of age, are paid at least $450 before tax in one month and work full-time, part-time or casual.

If someone is under 18 years of age, but works 30 hours or more, he or she gets compulsory super paid on their behalf.

By the way, look into the superannuation co-contribution money paid by the Government. It’s good for parents who want to help their kids build up money in super. The ATO website is good for explaining this.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Monday, September 20, 2010

blog comments powered by Disqus
Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300