Here in Australia our tax system works differently, we only pay income tax to the federal gov, and itās automatically deducted from our pay.
We have a range of items that can reduce our taxable income, but you need to lodge an annual tax return take advantage of them. I usually get a few thousand dollars back each year from these.
Except most (not all) states have income tax as well.
But same idea with paycheck deductions.
If you understand how the paycheck deductions are permitted to be adjusted to better fit the actual income tax youāll end up owing (after credits and deductions), you can avoid the refund once tax returns are filed (or at least a large refund).
But you have to instruct your employerās payroll dept accordingly.
If your automatic deductions were more than the actual tax you owe, then essentially you gave
with part of each paycheck until you got your refund.
Employers have to follow the ATO rules and thereās virtually no way to optimise things here.
The only exception is if your employer allows you to salary sacrifice a car or technology purchases. This lets you lease or buy things without paying GST (sales tax) and use pre-tax income with reduces your payable income tax.
For vehicles there is a fringe benefits tax on everything except EVās, but you get to claim so your maintenance, fuel and insurance pre-tax and still end up a long way in front.
For normal PAYG employees, there arenāt many other options to reduce your tax during the year. If you have a business then you have a huge amount of options.
Certainly no picnic for those of us that arenāt particularly facile with numbers, but the system does allow for some adjustment of how much is withheld from your paycheck.
Once you take into consideration other types of income like self-employment or investments, it definitely gets way more complicated here too.
Those are various poor approximations of Pi used by people. 22/7 is popular. 3 is a reference to the Indiana proposed bill of 1897 (which really used a value of 3.2, and was an attempt by the bill's proposer to collect royalties from the rest of the country once the law was established).