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tax on term deposits

Discussion in 'Money Management' started by selena18, 2nd May, 2008.

  1. selena18

    selena18 Member

    Joined:
    28th Apr, 2008
    Posts:
    7
    Location:
    Melbourne, Victoria
    Hi,

    Can anyone tell me what is the Tax payable on interest earned on a Term Deposit if it is my only source of income.

    example $250k x 8.1% = $20,250 interest earned.

    Thanks in advance

    Selena
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    Using the ATO's Tax Tools - Simple Tax Calculator

    ... and assuming 2007 tax rates and that you are a resident for the full year (and not taking medicare levy or any other aspects into account):

    The estimated tax on your taxable income is: $2,137.50

    Don't take this as gospel - there may be other factors which impact on your tax situation.
     
  3. selena18

    selena18 Member

    Joined:
    28th Apr, 2008
    Posts:
    7
    Location:
    Melbourne, Victoria
    Thanks

    Hi Sim,

    Thanks very much for the info and the link to the Tax Tool.

    Regards

    Selena