Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

TAX On PR or 457 As simple as I can make it

Options
  • 07-10-2009 5:58am
    #1
    Zambia
    Closed Accounts Posts: 7,333 ✭✭✭


    Just came back from my accountant today and this may be important for anyone or PR or a 457.

    In essence the tax year in Oz runs from July to July.

    1: Keep all your payslips and receipts in an envelope as soon as you start working.

    2: Keep Reciepts for anything you use for your work including
    Footwear
    Mobile bills
    Equipment
    Eyewear
    Hats
    Sunscreen etc

    If in doubt stick it in there

    3: Use the same chemist and ask for a account to be set up in your name that way you can include your medical expenses for the year. The medical expenses should be > $1500 (under that and dont bother)for the year but if you add the chemist bill to something else it can push it over.

    eg you spend $1000 on a series of tests that Medicare does not cover
    you have a yearly pharmacy bill of 600
    1000+600 = 1600

    You can now claim 20% of 1600.

    Stick your health insurance in there to.

    4: Be sure you are taxed at a the correct rate. This was explained to me a few times but in the end it went over my head. Simply ask your payroll guy and say I dont want to be charged extra tax at years end they should be able to assure you that you wont. If you are being charged a flat rate of 17c in the dollar you could be in trouble.

    5: At years end you get a summary keep that with your pay slips.

    6: Take envelopes to a Tax accountant. They will work it all out and apply for your tax back.

    This cost me about $70 and it was well worth me not doing it. You can do it yourself its a personnal choice.

    If anyone has any other tips stick em in


Comments

  • Options
    #2
    jank
    Banned (with Prison Access) Posts: 13,018 ✭✭✭✭jank


    Quick question for ye guys. As a 457 visa holder can one be classified as a Australian Resident for tax purposes. Been living here almost 6 months now and my reading of it is that after that time you can be classified as a tax resident.
    Will save me a load in tax!

    http://www.ato.gov.au/individuals/content.asp?doc=/content/64131.htm
    http://www.ato.gov.au/individuals/content.asp?doc=/content/12333.htm


  • Options
    #3
    FreeAnd..
    Closed Accounts Posts: 1,150 ✭✭✭FreeAnd..


    jank wrote: »
    Quick question for ye guys. As a 457 visa holder can one be classified as a Australian Resident for tax purposes. Been living here almost 6 months now and my reading of it is that after that time you can be classified as a tax resident.
    Will save me a load in tax!

    http://www.ato.gov.au/individuals/content.asp?doc=/content/64131.htm
    http://www.ato.gov.au/individuals/content.asp?doc=/content/12333.htm

    Yes - even on a WHV after six months (+ few other conditions) you are classed as a resident for tax purposes


  • Options
    #4
    jank
    Banned (with Prison Access) Posts: 13,018 ✭✭✭✭jank


    Nice, does that mean you are allowed to claim tax back for your first 6 months as your tax bands have changed?


  • Options
    #5
    FreeAnd..
    Closed Accounts Posts: 1,150 ✭✭✭FreeAnd..


    jank wrote: »
    Nice, does that mean you are allowed to claim tax back for your first 6 months as your tax bands have changed?

    yep...once you are classed as a resident (for tax) that will be for the whole or part of year that you are there i.e. it does not kick in after you become a resident but from when you entered the country...


  • Options
    #6
    jank
    Banned (with Prison Access) Posts: 13,018 ✭✭✭✭jank


    OK, Just checked this and it appears that I am already being taxed as a resident however my OH is not being taxed as a resident. So who is wrong here? My work place or my girlfriends?


  • Advertisement
  • Options
    #7
    FreeAnd..
    Closed Accounts Posts: 1,150 ✭✭✭FreeAnd..


    jank wrote: »
    OK, Just checked this and it appears that I am already being taxed as a resident however my OH is not being taxed as a resident. So who is wrong here? My work place or my girlfriends?

    probably neither of them -did you not fill in a tax form when you started work where you note down your tax residency status?


  • Options
    #8
    jank
    Banned (with Prison Access) Posts: 13,018 ✭✭✭✭jank


    Definately! They sponsored me off the bat as I got a transfer from NZ. Must be my girlfriend's company then. Ill get her to give her HR dept a buzz.


    On other matters, end of tax year comming up here in OZ. Man the OP is right, keep ALL receipts and try and claim back every single $$ you have paid in tax.


  • Options
    #9
    Tigerandahalf
    Registered Users Posts: 7,814 ✭✭✭Tigerandahalf


    Im on a WHV and I was 'taxed as a resident' from day one. Once you select that option in the TFN form you should be fine.
    As regards claiming the tax back I have a question for ye..the tax year has just ended. Can I wait to claim all my tax back until I go home at the end of my visa later this year or do I have to claim tax back now.
    How do you go about it?
    Some people say you get forms in the post now with the tax you have paid so far. True?


  • Options
    #10
    ArseBurger
    Registered Users Posts: 647 ✭✭✭ArseBurger


    Don't forget that you may be eligible for LAFHA (Living Away From Home Allowance) if you're on a 457.


  • Options
    #11
    Zambia
    Closed Accounts Posts: 7,333 ✭✭✭Zambia


    Tigerandahalf wrote: »
    Im on a WHV and I was 'taxed as a resident' from day one. Once you select that option in the TFN form you should be fine.
    As regards claiming the tax back I have a question for ye..the tax year has just ended. Can I wait to claim all my tax back until I go home at the end of my visa later this year or do I have to claim tax back now.
    How do you go about it?
    Some people say you get forms in the post now with the tax you have paid so far. True?

    You can cliam it anytime during the tax year I believe I cliamed mine last september/october


  • Advertisement
  • Options
    #12
    Tigerandahalf
    Registered Users Posts: 7,814 ✭✭✭Tigerandahalf


    My question is though whether I have to do two separate reclaims, one for each tax year. Or can I make a single reclaim in Nov/Dec for tax paid going back to Feb 10.


  • Options
    #13
    Zambia
    Closed Accounts Posts: 7,333 ✭✭✭Zambia


    Tigerandahalf wrote: »
    My question is though whether I have to do two separate reclaims, one for each tax year. Or can I make a single reclaim in Nov/Dec for tax paid going back to Feb 10.


    Ah I would think not you cliam for pre June 30 2010 now.

    Then after June 30 2011 you cliam for June 30 2010 - june 30 2011

    Well thats my understanding:o


  • Options
    #14
    Tigerandahalf
    Registered Users Posts: 7,814 ✭✭✭Tigerandahalf


    That makes more sense. How soon should you expect employers to send out these year-end forms? Do they have to send them out before a certain date?


  • Options
    #15
    Zambia
    Closed Accounts Posts: 7,333 ✭✭✭Zambia


    Tigerandahalf wrote: »
    That makes more sense. How soon should you expect employers to send out these year-end forms? Do they have to send them out before a certain date?

    Once i get mine I will post. I reckon its this week coming.


  • Options
    #16
    mandrake04
    Registered Users Posts: 4,435 ✭✭✭mandrake04


    Zambia232 wrote: »
    Once i get mine I will post. I reckon its this week coming.

    I got mine on Thursday


  • Options
    #17
    gonedrinking
    Closed Accounts Posts: 810 ✭✭✭gonedrinking


    ArseBurger wrote: »
    Don't forget that you may be eligible for LAFHA (Living Away From Home Allowance) if you're on a 457.

    if the company didn't offer them a LAFHA when they started working in oz then they aren't gonna turn around now and offer it to them


  • Options
    #18
    patsy mulcaghy
    Registered Users Posts: 274 ✭✭patsy mulcaghy


    Hi guys,

    Does anyone know the craic with claiming a percentage of a car bought (I use it for work), similarily petrol, mobile phone bills etc. (also used for work)

    Is there a limit for how much you can claim as 'work-related expenses'? ;)

    Not trying to do the shady here of course, but would like to know what can claimed and what cannot?

    Ta


  • Options
    #19
    mandrake04
    Registered Users Posts: 4,435 ✭✭✭mandrake04


    patsy mulcaghy wrote: »
    Hi guys,

    Does anyone know the craic with claiming a percentage of a car bought (I use it for work), similarily petrol, mobile phone bills etc. (also used for work)

    Is there a limit for how much you can claim as 'work-related expenses'? ;)

    Not trying to do the shady here of course, but would like to know what can claimed and what cannot?

    Ta

    For the car you would be best going to a Tax Agent to sort that out if you don't know much about it otherwise you could shoot yourself in the foot.

    Really the best thing for doing that is to run a Log-book for 3 months and this will do you for 5 years. I would suggest to do the log book when your work is busiest and you have very little private KM (don't do it when you are on your holidays) that way your Business v private is more favorable for your pocket.

    Really anything used solely for work can be claimed (eg Hammer and shovel) but stuff like cars, phones, laptops which could be used for private use as well then you have to give an honest usage for percentage of Business v Private.

    There is no limit but the higher the value you are trying to claim then the more interested the ATO are in checking it out.

    If you take the p!ss then you are just asking to Audited.


  • Options
    #20
    patsy mulcaghy
    Registered Users Posts: 274 ✭✭patsy mulcaghy


    mandrake04 wrote: »
    For the car you would be best going to a Tax Agent to sort that out if you don't know much about it otherwise you could shoot yourself in the foot.

    Really the best thing for doing that is to run a Log-book for 3 months and this will do you for 5 years. I would suggest to do the log book when your work is busiest and you have very little private KM (don't do it when you are on your holidays) that way your Business v private is more favorable for your pocket.

    Really anything used solely for work can be claimed (eg Hammer and shovel) but stuff like cars, phones, laptops which could be used for private use as well then you have to give an honest usage for percentage of Business v Private.

    There is no limit but the higher the value you are trying to claim then the more interested the ATO are in checking it out.

    If you take the p!ss then you are just asking to Audited.

    cheers lad ;)

    Slightly off topic, but does anyone know of a cheap and easy way to draw all my superannuation funds together? I heard that some companies can track and tie all the contributions for you if you have been with a few different employers during the WHV?

    Ta


  • Options
    #21
    mandrake04
    Registered Users Posts: 4,435 ✭✭✭mandrake04


    patsy mulcaghy wrote: »
    cheers lad ;)

    Slightly off topic, but does anyone know of a cheap and easy way to draw all my superannuation funds together? I heard that some companies can track and tie all the contributions for you if you have been with a few different employers during the WHV?

    Ta


    Try this Chief http://www.ato.gov.au/individuals/content.asp?doc=/content/33301.htm&alias=superseeker


  • Advertisement
  • Options
    #22
    plink
    Closed Accounts Posts: 35 ✭plink


    I've been through all of the threads which refer to LAFHA, but I cannot find the answer to my question - is it just the primary sponsored person who can claim this, or can the de facto/secondary applicant also claim this??


  • Options
    #23
    hussey
    Registered Users Posts: 6,240 ✭✭✭hussey


    plink wrote: »
    I've been through all of the threads which refer to LAFHA, but I cannot find the answer to my question - is it just the primary sponsored person who can claim this, or can the de facto/secondary applicant also claim this??

    Yes and No

    No - as in you do not claim lafha, it is given to you by an employer
    Yes - IF a company is willing, then yes you can.

    So simple answer is - Only if the company gives it to you


  • Options
    #24
    plink
    Closed Accounts Posts: 35 ✭plink


    Yes I understand all of that. My question is based on whether or not the person considered to be the dependant can receive this. I will presume from you answer that they can?
    But on the LAFHA website, they refer only to the primary applicant.


  • Options
    #25
    hussey
    Registered Users Posts: 6,240 ✭✭✭hussey


    plink wrote: »
    Yes I understand all of that. My question is based on whether or not the person considered to be the dependant can receive this. I will presume from you answer that they can?
    But on the LAFHA website, they refer only to the primary applicant.

    Yes they can


Advertisement