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WHAT HAPPENS WHEN YOU HAVE A “TAX PAYABLE” OR “TAX REFUNDABLE”

23
May

At the end of the financial year tax is calculated, when all the income is calculated and all the deductions are made. When the amount of tax withholdings is less than the tax calculated then we have to pay the remaining amount, which is called tax payable.

On the other hand, taxpayers can often get a tax refund on their income tax if the amount payable is less than the tax withheld, which is if the tax that has been paid throughout the year is more than the actual payable, then the taxpayers can get a tax refund. In simple words, Tax refunds are money given back to the taxpayer at the end of the financial year.
If there is tax payable then, you need to have an account at myGov which is linked to the ATO. From the account, you can lodge your tax return; check on the progress of your tax return and many more. While making the tax payment you need to pay through Australian cheque or savings account at your financial institution's local branch or using their phone or Internet banking service.
You can also pay using-

• Credit Card;
• Direct credit;
• Direct debit;
• Mail;
• In person at Australia Post;
• Transfer from an overseas bank account.

If there is a tax refundable, then you will get the tax refund from the government. If you
lodged your tax return online, then you will get the refund within 12 business days, and if you lodged it through paper, then you will receive the refund within 50 business days.