Australian Resident for Tax purposes?

Trained Monkey

I've been in Australia since November and started working a couple of months ago. Im on WHV and wondering am I a resident for tax purposes. Do non-residents pay higher tax and do you get this this back when you finish working? Basically is it more benificial for me to be registered as a resident for tax purposes?

hussey

Yes, if you have lived in one area for 6 months, then you can be considered a resident for tax purposes
http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/64131.htm

Generally, you are an Australian resident for tax purposes if you have:

* always lived in Australia
* moved to Australia and live here permanently
* been in Australia continuously for six months or more and for most of the time you have been
o in the one job and
o living in the same place,

It is self assessment so it's up to you, but since you've been in the same place and the job for most of the time you have been I would say you classify.

Trained Monkey

Ok thanks for the advice. Thats what I was thinking also. Do you know if being a resident for tax works out better in the long term. I know I will be taxed 30% as a non-resident and only 15% approx as a resident but do I get this money back in the end when I apply for tax back? Im registered as a non-res at the moment so is it worthwhile changing over?
Probably a stupid question but I said I'd ask in case anybody else was wondering the same thing

FreeAnd..

no need to switch over, on your tax return at the end of June put down that you are a partial year tax resident (November to June) and you will get most of your tax back...works out sweet...

hussey

When you leave the county, you do not get your tax back, you receive what extra you over paid.

Certain tax refund companies will tell you you are entitled to lots of money, they do this via the 'RFTP' route also.

which is why in the majority of workers receive a large tax sum when they leave.

Trained Monkey

hussey wrote: »

When you leave the county, you do not get your tax back, you receive what extra you over paid.

Certain tax refund companies will tell you you are entitled to lots of money, they do this via the 'RFTP' route also.

which is why in the majority of workers receive a large tax sum when they leave.

So does this mean that if i stay registered as a non-resident I will get a larger lump sum back when I file my tax return stating that I was a part year resident?? Basically will the extra 15% which I paid in tax be returned to me in july??

Apologies for the persistence but money is a bit tight at the min!

hussey

Trained Monkey wrote: »

So does this mean that if i stay registered as a non-resident I will get a larger lump sum back when I file my tax return stating that I was a part year resident?? Basically will the extra 15% which I paid in tax be returned to me in july??

Apologies for the persistence but money is a bit tight at the min!

if you make a return in July saying you are a resident for tax purposes then you will get a larger amount back (tax free threshold (up to 6k) and 15%)

If you need any details on tax return, figures etc, pm me, and I can help out, I've done it a few times and know the ins and out

Trained Monkey

hussey wrote: »

if you make a return in July saying you are a resident for tax purposes then you will get a larger amount back (tax free threshold (up to 6k) and 15%)

If you need any details on tax return, figures etc, pm me, and I can help out, I've done it a few times and know the ins and out

Legend! Will pm later...trying to make it look like im working at the minute! might have a much smaller tax return if i dont start to look busy! thanks

passive

Sorry to dig up an old thread, but this was the first to come up on google. I'm really confused on this RFTP business, and need a little help to avoid doing it wrong.

Myself and my girlfriend are both here on WHV, both working as of about 2 weeks ago. I ticked non-resident on the tax form, but as far as I can make out, once I hit the 16th of December I will have been in Australia for six months, most of which I lived and worked in the same place (Brisbane is awesome, by the way). That's more or less when I intend to be finished working, or a bit later,then I'll be going on a travelling binge and leaving in February.

So...When I fill in my tax return thing, will I be entitled to tick the RFTP box and get the tax-free allowance, or do the months I spent working as a non-resident not get undone or backdated, and it would only be any work I did after the 16th of December that would be resident work?

Thanks!

...and, question 2

My girlfriend's been in Australia for 6 months, 4 months of which she lived in Melbourne, 2 of which she worked in a bar in Melbourne. They underpaid her pretty badly though, and I don't know if it was above board. I doubt they were paying any tax in any case. So...would that render her unable to tick the RFTP box? If so, she's more or less in the same boat as me, except that she'll have lived & worked in the same place as of the 27th of November..

Em...*vague shrugging*

Any help or confusion would be appreciated.

hussey

passive wrote: »

both working as of about 2 weeks ago. I ticked non-resident on the tax form, but as far as I can make out, once I hit the 16th of December I will have been in Australia for six months, most of which I lived and worked in the same place

So...When I fill in my tax return thing, will I be entitled to tick the RFTP box and get the tax-free allowance

Yes, you are allowed to tick the box now if you want, if you intend then that is fine, your tax only matters when you do a final assessment, so by then you will have been a RFTP. If you want to get refill out the form or get HR to classify you as a RFTP now.

My girlfriend's been in Australia for 6 months, 4 months of which she lived in Melbourne, 2 of which she worked in a bar in Melbourne. They underpaid her pretty badly though, and I don't know if it was above board. I doubt they were paying any tax in any case. So...would that render her unable to tick the RFTP box? If so, she's more or less in the same boat as me, except that she'll have lived & worked in the same place as of the 27th of November..

it will really depend on if she was getting cash in hand or actually paying tax (even if underpaying)
if she is paying tax then yes a RFTP, if not then no, but then again she isn't paying tax anyway .....

passive

hussey wrote: »

Yes, you are allowed to tick the box now if you want, if you intend then that is fine, your tax only matters when you do a final assessment, so by then you will have been a RFTP. If you want to get refill out the form or get HR to classify you as a RFTP now.

Awesome, thanks. I'll have a word with the office now and see what they say. I'd probably opt for fixing it now and having money handy, rather than taking the tax-saving scheme route.

if she is paying tax then yes a RFTP, if not then no, but then again she isn't paying tax anyway .....

Wasn't*, thankfully, not isn't (she was getting $13 an hour and 20 minute breaks on 12 hour shifts. **** times... )That employer has been left behind, and these questions stem from her filling in a form for the new, decent, workplace. Thanks a bunch anyway!

(edit: misread that, I think. Yeah, I'll tell her to check with her boss, but lean towards the RFTP box if he agrees with (y)our assessment.)

mango85

Hey all, Im trying to get my tax back from Oz online from Ireland...but it wont let me finish it until Ive entered some notice of ammendment...what is this? I might have got it when I was in Oz last year but I defo dont have it now, they never answer their bloody phones to ask them about it in Oz and they wont answer my emails...help! Really need that tax back asap...for a recession session!

crimsonfire

I ticked resident for tax purposes and it turned out fine. Got nearly all my tax back. I was lucky though because I was being way overtaxed during my regional work. Not sure how that happened since I was already a RFTP.

Hey all, Im trying to get my tax back from Oz online from Ireland...but it wont let me finish it until Ive entered some notice of ammendment...what is this? I might have got it when I was in Oz last year but I defo dont have it now, they never answer their bloody phones to ask them about it in Oz and they wont answer my emails...help! Really need that tax back asap...for a recession session!

Just keep trying to contact them. Theres not much else you can do. I was nearly in the same situation a few months back but luckily I found the letter at the last minute.