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Past year's tax and current year's FTA/FTB

Discussion in 'Accounting & Tax' started by RumpledElf, 27th Jan, 2016.

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  1. RumpledElf

    RumpledElf Well-Known Member

    Joined:
    21st Jan, 2016
    Posts:
    137
    Location:
    Sydney
    Last year I got a decent sized tax bill (HECS and child support comes off negative gearing too, didn't know that, not negatively gearing anything again) and I haven't made much of a dent into it so it will still be there after the pay-by date, gathering interest.

    However, this year I am older and wiser and have declined fortnightly FTA/FTB in favour of taking one payment at the end of the financial year. My income is much much lower this year unfortunately so this is not doing me any favours with cashflow :( Some guy I was working for didn't pay me for a contract and it has thrown everything out but that is another story (I am just sending him a new statement with interest each month atm)

    So, at the end of the 2015/2016 I'll have a lower income, no negative gearing, smaller tax bill in 2015/16 and a larger amount of FTA/FTB owed to me than in 2014/15. Does anyone know if this come off the previous year's tax debt automagically or will it only come off the current year's tax debt and (maybe) give me a refund to then throw on the previous year's tax debt?

    Mostly the same result either way but the previous year's debt will be getting interest by then and the current year's will be interest free until April 2017.
     
  2. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,400
    Location:
    Sydney
    Centrelink and ATO share data automatically. If a Government debt exists the FTB will be credited to the debt unless Human Services otherwise agree. They can even take a child support debt from tax. Or garnishee you wages if you arent in a debt agreement. Without telling you !!

    There is no such this as "this years" or last years when its a debt. If you don't have a debt arrangement with the ATO they will get nasty.
     
  3. RumpledElf

    RumpledElf Well-Known Member

    Joined:
    21st Jan, 2016
    Posts:
    137
    Location:
    Sydney
    Ah good, that's all I wanted to know.

    Last year's tax isn't due yet so it isn't a debt yet, I'll make an arrangement when the time comes. They're usually really nice when you call them up to organise stuff.

    I think I liked it better when I was PAYE and got a return every year not a bill ...