Income Tax - working in Oz

ION08

Hey there,

Ive been working in Oz for the past month on a 1yr Working Holiday Visa and I seem to be getting fleeced with income tax..

I am getting taxed 29% out of my wages every fortnight which is a bit of a pain especially when rent and bills are due, etc.

I rang up the tax offices and the guy on the phone wasnt very helpful, he just told me that 29% is the correct rate of tax for 'non-residents' and that was that!

Is this really the right amount? .. also Ive heard that you can claim most of this (if not all of it) back when you leave australia?!

Can anyone more experienced or in the know enlighten me!

slipss

Yeah I think I know the problem man, when you filled out your TFN form, the carbon copy tax form you have to fill out when you start work, on the box that asks you if you are an australian for tax purposes tick the yes box, also on the question that asks if you would like to claim the tax free threshhold from this employer ( I can't remember exactly how the question is phrased but it's the one after the "are you an australian for tax purposes" one) tick the yes box aswell, if you do that you should only be paying about 12% tax. Hope that helps.

hussey

Slipss - 29% seems to be correct for him (he hasn't told us enough info)
he's only been working for a month so that does not qualify him for a tax free treshold
http://www.ato.gov.au/individuals/content.asp?doc=/content/64131.htm

Now ION08 it is up to you to decide whether to declare you are a RfTP for not.
It is up to you if you want to claim this, it is self assessment. If you intend to stay in one area for 6months and for most of that time in one job then you can be classed as a resident .... if you only intend to work and travel then no

here is a decent guide to whether you are intitled to it or not
http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=Resident.XR4&go=ok

ION08

Nice one, thanks for the info, especially the last link hussey provided.

I filled it out and it stated that I actually am a 'Resident' for tax purposes so i called back the tax ofice and told them.

They agreed and said a lot of people confuse Resident for tax purposes and Resident for immigration purposes - 2 very different things.

They changed my TFNr to Resident status and I have to now fill out a form (NAT 3092) and give it to my current employer so I will be taxed the correct rate form now on.

The only thing is, he said if I wanted to get my tax back from previous wages I need to submit a tax self assesment, which sounds a bit complicated but will look into it some more.

hussey

Yeah it is complusory to fill a tax return ... they release software to do it for you at the end of June ... it is EASY as pie
type in what you earned, what you paid in tax, any deductions etc.
and hey presto you got a tax return you can submit online

you can also go to the tax agents for about $100 but honestly do it yourself don't worry about it.

Also as a FYI it might ask you to pay a medicare levy (I don't think it will) but if it doesn't click no levy - since you are from Republic of Ireland you don't have to pay anything for this

don't worry in the next two week there will be a flood of tax questions!

zootroid

I was sure I ticked the box for resident for tax purposes, but maybe I didn't as I have been paying tax at 29% all year. I didn't mind too much, I looked at it as a way of saving some cash.

Do you have to wait until the first of July before lodging a tax return? I have just arrived home, and was hoping to fill in a return as soon as possible, knowing that it might come through earlier if it beats the crowd! Before I left I got my employer to email me a certificate of earnings for the year.

hussey

No if you leave Oz you can claim it - you just need to look here
http://www.ato.gov.au/individuals/content.asp?doc=/content/14747.htm
so you must leave for good pretty much

zootroid

Cheers Hussey!

Was hoping to get my return in early, but doesn't look like I can now. Also, I heard somewhere (might have read it on boards actually) that it will take longer to process tax returns this year as staff have been busy dealing with the governments stimulus plan. So it might be a month or maybe longer before I get my tax back

trailerparkboy

I always thought id have to pay 30% tax on my wages now it looks like i can pay only 15% if im resident for tax purposes:D

hussey

zootroid wrote: »

Cheers Hussey!

Was hoping to get my return in early, but doesn't look like I can now. Also, I heard somewhere (might have read it on boards actually) that it will take longer to process tax returns this year as staff have been busy dealing with the governments stimulus plan. So it might be a month or maybe longer before I get my tax back

Yeah the ATO has said that, since the whole stimilus thing every Mitch, Jarrad & Hayden are filing their tax return