Need-To-Know Facts Of Australian Tax

If you’ve paid tax at any time while in Australia, you need to submit a tax return. You could also be entitled to a tax refund. To help you with the ins and outs of it all, here are our top tips on Australian tax.

Know Your Tax Residency

How much your tax refund will amount to determines on whether you’re a resident or non-resident. If you’ve been in Australia for less than six months on a temporary visa, you will pay the non-resident tax rate. If you’ve worked six months or more, you’ll pay the resident tax rate. The tax rate for non-residents is higher, but this is why claiming it back is so important!

Claiming Income Tax

When you start paying tax at the resident rate after six months, you may be able to claim a refund on the tax you paid as a non-resident. This is money that you’re owed and entitled to, so it’s important not to leave it. To find out if your circumstances entitle you to a tax refund, you can speak to a tax agent.

Claiming Your Superannuation

In Australia, superannuation is a retirement fund, like a state pension. A percentage of your salary is put aside as superannuation and can’t be touched until you retire – or, until you leave Australia. If you’re not staying in Australia, you can apply to release your superannuation as soon as you leave Australia and your visa has expired.

Claiming The Medicare Levy

Some foreign citizens are exempt from paying the Medicare levy, the taxpayer-funded health scheme for Australians, for which 2% is paid from taxable income. If you’re exempt from paying the levy, you need an exemption letter, which will increase your tax refund. Not sure if you’re exempt? Ask a tax agent about the Medicare levy exemption.

Include Your Bank Interest

Make sure you include your bank account interest in your annual tax return to ensure your refund is not delayed.

Claiming Work Expenses

Minimise your tax or increase your tax refund by claiming work expenses. These should be directly related to your job while in Australia, so what you can claim back on depends on what job you are doing. Expenses include any tools, equipment, work uniform or courses fully paid for by you, not your employer. You should remember to keep your receipts for any expenses you want to claim.

Submitting Your Tax Return

You need to submit a tax return if you’ve paid tax while you’ve been in Australia. The Australian financial year runs from 1st July – 30th June and you must submit your tax return by 31st October.
Get in touch with a tax agent to get help with your tax return!