Category: Tips

Tips

Tax Advice for Individuals Planning to Move to Australia Permanently

Regardless of the country, understanding how taxes work and the proper way to file your tax returns is rarely a simple task. Australia is no different. This is why it is important for anyone planning to move to Australia permanently to familiarize themselves with the taxation process in Australia and learn how to navigate the murky waters of taxation laws in Australia.

Know the Dates

The tax year in Australia is from the 1st of July till the 30th of June. You are expected to file your Australian tax return by the 31st of October. Lastly, you can expect your ‘Pay As You Go’ (PAYG statement) from your employer by July 14th. This statement contains a summary of your withholding assets.

How Much Tax Will You Have to Pay?

The taxable income thresholds for Australian residents and foreign Australian resident vary. In general, the minimum amounts on which taxes are applicable to each type of resident are $18,201 and $87,001 respectively.

On top of this, Australian residents are also expected to pay a 2 percent Medicare Levy that entitles them to the benefits offered under Medicare. Foreign residents though can be exempted from this Levy if they meet the exemption criteria.

Additionally, there is another 2 percent Medicare Levy Surcharge (MLS) for every taxpayer who doesn’t have an insurance for a private hospital.

Apply for Your Tax File Number

One of the first things you need to do after moving to Australia is to apply for a Tax File Number (TFN). This number will be used throughout your stay in Australia for taxation purposes. Moreover, you are also required to submit a TFN number to your employer within 28 days of starting your employment. Failure to do so could lead to your employer withholding up to 49 percent of your salary. So, it is a good idea to get your TFN number as early as possible. It can take anywhere between 10 and 28 days for your application to be processed.

If you don’t want to go through the paperwork yourself, you can hire tax agents hobart who’ll do it for you.

legal help

How to File Your Tax Return in Australia

Once you receive your PAYG statement, you can start on the filing process even though it is due on the 31st of October. The PAYG statement might look like an informal or unofficial document, but it contains a complete summary of your earnings in that tax year along with the address of your employer. The rest of your tax details are already forwarded to ATO, the Australian Tax Office by your employer and bank in August. You can then file your tax returns online.

Get Legal Help

 

Enlisting the help of a lawyer who specializes in migration and tax laws in Australia can help you understand the intricacies of the tax system and can help you avoid making any mistake. A lawyer can also help you manage your assets in your previous country and how they would impact your tax returns in Australia.

CONTINUE READING