FINANCIAL year (FY) 04/05 will yield 27 paydays instead of the usual 26, causing a minor tax headache.

Fortnightly taxation instalments are deducted based on annual taxable salary paid over 26 paydays. But, because there will be 27 paydays this FY, members may experience a shortfall in tax payments.

To minimise this, members can request additional tax be deducted. For information increasing tax deductions members should seek professional financial advice from an approved financial adviser.

DEFPAC will soon release a DEFSAAC providing details on these tax implications providing advice to all pay offices on the procedures to assist members who decide to have additional tax deducted.

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