Tax in Australia

Tax Year

The Tax Financial Year in Australia ia from 1 July to 30 June.

At the end of the financial year you have until 31 October to lodge your tax return.

Tax File Number (TFN)

A tax file number is a unique number issued by the Australian Tax office (ATO). Whilst it's not compulsory to have a TFN if you do not have one you may;

• Have more tax withheld than is necessary
• Not be able to receive government benefits you are entitled to receive
• Cause delays in the processing of your documents by the ATO

Once applied for, a TFN takes 2-4 weeks to arrive.

You either need to apply online (see www.ato.gov.au) if you are a temporary visitor or temporary resident, or in person if you are a permanent resident at the Tax or Centrelink office in your nearest suburb.

Tax Free Threshold

The tax free threshold is the amount of money you can earn without paying tax on it. If you are a resident of Australia for tax purposes then the tax free threshold is $6000.

Tax Returns

In Australia it is self assessment for all, that means that everyone earning over the Tax Free threshold must complete a tax return per year.

Generally speaking, as a resident of Australia you must lodge an income tax return if your taxable income is over the tax-free threshold (A$6000) or if you have any amounts of tax withheld  from the income you received. In a nutshell;

Residents - Must loge a tax return where table income if greater than A$6000 OR must lodge a tax return where they have held tax withheld from income received.

Non-residents - Must lodge a tax return regardless of their taxable income.

See the ATO website for more information on www.ato.gov.au .

Tax Credits

Once you have your tax file number you can apply for Family Tax Credit (equivalent of UK child benefit)

To do that you have to apply to Centrelink (see http://www.centrelink.gov.au/)

Paying Tax in Two Countries (Home and Host)

Your liability to pay tax in both countries would depend on your individual circumstances and the domestic tax laws of both countries. As a general rule you will only pay tax in one country on the same income, as you should receive a tax credit or an exemption from tax in the other country.

However, this will be dependant on the tax agreements between both countires and you are advised to seek financial advice to discuss your individual circumstances.

Note that for the first and last year you spend in Australia, you may have an obligation to file a tax return and a possible liability both in Australia and your home country.

Comments

[Fred]

Hi there

If I earn $3416.00 per month. What will I get out after tax is deducted?

Cheers

[earn money from home]

I hate tax! Talk about complicated having to do 2 returns one at home and one in your host country!

[kuhan]

Hi

year 2007/2008 I have 7 payment summary ( group certificate )but only 5 ROW to write on the tax form DO YOU KNOW WHAT I HAVE TO DO ?

THANKS