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Tax Back and Medicare

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  • 20-05-2013 2:51pm
    #1
    niva*sis
    Registered Users Posts: 309 ✭✭


    hi everyone,

    im sorry if this was asked before, i have seen a few medicare forums but they seem old so i said id throw this out there.

    im on a 457 visa since sept, from the republic of ireland, am i entitled to claim the medicare levy exemption this year when i file for my tax return.

    does it matter if you are on a 457 or 417?

    if so can i apply for the cert now or do i have to wait for the first july to come around and then apply for it. im not in the process of applying for residency so my current visa wont change before the first july.

    i also have my own private health insurance since sponsorship, does this make any difference?

    thanks,

    :D:D:D


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    #2
    hussey
    Registered Users Posts: 6,240 ✭✭✭hussey


    niva*sis wrote: »
    hi everyone,

    im sorry if this was asked before, i have seen a few medicare forums but they seem old so i said id throw this out there.
    It has been asked loads of times and the answers have not changed ... but nevermind
    im on a 457 visa since sept, from the republic of ireland, am i entitled to claim the medicare levy exemption this year when i file for my tax return.
    Yes temporary residents from RoI are entitled to claim exemption since you do not receive medicare
    does it matter if you are on a 457 or 417?
    No - as long as it's not PR
    if so can i apply for the cert now or do i have to wait for the first july to come around and then apply for it. im not in the process of applying for residency so my current visa wont change before the first july.
    You have to wait until tax year ends, you can apply via this form
    http://www.humanservices.gov.au/spw/customer/forms/resources/3169-0712en.pdf

    i also have my own private health insurance since sponsorship, does this make any difference?
    None


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    #3
    Batgurl
    Registered Users Posts: 1,208 ✭✭✭Batgurl


    Actually, the private health insurance may entitle you to a tax offset. After 30 June, your provider should send you a form which will tell you how much you can claim as an offset.

    Just my two cents


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    #4
    hussey
    Registered Users Posts: 6,240 ✭✭✭hussey


    Batgurl wrote: »
    Actually, the private health insurance may entitle you to a tax offset. After 30 June, your provider should send you a form which will tell you how much you can claim as an offset.

    Just my two cents

    I'm pretty sure, that offset is against medicare, which (irish) temporary residents are not entitled too.


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    #5
    Batgurl
    Registered Users Posts: 1,208 ✭✭✭Batgurl


    hussey wrote: »
    I'm pretty sure, that offset is against medicare, which (irish) temporary residents are not entitled too.

    My tax agent got it for me last year on top of my Medicare Levy exemption.

    Perhaps he did it wrong but my refund went through alright.


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    #6
    Legend100
    Registered Users Posts: 736 ✭✭✭Legend100


    Yup he did it wrong :)


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    #7
    mandrake04
    Registered Users Posts: 4,435 ✭✭✭mandrake04


    Batgurl wrote: »
    Actually, the private health insurance may entitle you to a tax offset. After 30 June, your provider should send you a form which will tell you how much you can claim as an offset.



    Just my two cents
    I think you are talking about MLS, it probably wouldn't apply.

    Medicare levy surcharge

    Individuals and families on incomes above the Medicare levy surcharge (MLS) thresholds, who do not have an appropriate level of private patient hospital cover, pay MLS for any period during the year that they did not have this cover.

    When don't you have to pay the surcharge?

    You do not have to pay MLS if you and all your dependants (including your spouse):
    were in a Medicare levy exemption category for the whole of the income year    , or
    had an appropriate level of private patient hospital cover.



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    #8
    Mellor
    Registered Users Posts: 39,090 ✭✭✭✭Mellor


    Batgurl wrote: »
    My tax agent got it for me last year on top of my Medicare Levy exemption.

    Perhaps he did it wrong but my refund went through alright.

    He basic got you exemption from the surcharge. Which is kinda if redundant if you are exempt from Medicare to begin with.


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    #9
    niva*sis
    Registered Users Posts: 309 ✭✭niva*sis


    just another question to add to this, from the start of july last year until Oct i was on a 417 visa, then from oct i was on a 457 visa, when i apply for my tax back should i get all of the 3 months that i paid while on 417 (July, Aug, Sept) or will they see the year as a whole and do it that way?


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    #10
    Mellor
    Registered Users Posts: 39,090 ✭✭✭✭Mellor


    Why would you get your 417 tax back?

    You pay the same tax whether you are on a 417 or 457, in both cases you are a resident for tax purposes


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    #11
    niva*sis
    Registered Users Posts: 309 ✭✭niva*sis


    i thought there was something about when you are on your first year 417 that you get a lot of that tax back?


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    #12
    s.c
    Registered Users Posts: 270 ✭✭s.c


    niva*sis wrote: »
    i thought there was something about when you are on your first year 417 that you get a lot of that tax back?

    Did someone in a pub tell you this?


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    #13
    niva*sis
    Registered Users Posts: 309 ✭✭niva*sis


    sorry but we dont all spend our time in the pub.
    so you can keep your smart answer.


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    #14
    mandrake04
    Registered Users Posts: 4,435 ✭✭✭mandrake04


    niva*sis wrote: »
    i thought there was something about when you are on your first year 417 that you get a lot of that tax back?

    You only get back what you are entitled to, the tax free threshold is $18200 per year and the tax free component is evenly through out the year.

    $350 a week
    $700 a fortnight
    $1,517 a month

    but if you are part year resident then you will be able to access a tax-free threshold of at least $13,464. Access to the remaining $4,736 of the full tax-free threshold will be pro-rated. This can only be attained at the end of the tax year.

    It only seems that you get more money back on the 417 in your first year but its because you might have only arrived during the year and earned less, but what they are doing is repaying what you overpaid.


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    #15
    Batgurl
    Registered Users Posts: 1,208 ✭✭✭Batgurl


    mandrake04 wrote: »
    You only get back what you are entitled to, the tax free threshold is $18200 per year and tax is usually deducted evenly through out the year.

    like so
    $350 a week
    $700 a fortnight
    $1,517 a month

    but if you are part year resident then you will be able to access a tax-free threshold of at least $13,464. Access to the remaining $4,736 of the full tax-free threshold will be pro-rated. This can only be attained at the end of the tax year.

    It only seems that you get more money back on the 417 in your first year but its because you might have only arrived during the year and earned less, but what they are doing is repaying what you overpaid.

    Interesting. Never heard this.

    So part year resident? Does this only apply to people who didnt tick resident for tax purposes? Or is it just 417 visas. Or is it also 457 visas seeing as they are temporary visa holders as well?


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    #16
    old_aussie
    Registered Users Posts: 3,410 ✭✭✭old_aussie


    Batgurl wrote: »
    Interesting. Never heard this.

    So part year resident? Does this only apply to people who didnt tick resident for tax purposes? Or is it just 417 visas. Or is it also 457 visas seeing as they are temporary visa holders as well?

    Download the eTax 2013 return and see what you need to answer to find out if you are entitled to a refund and how to get your refund.

    http://www.ato.gov.au/Individuals/


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    #17
    mandrake04
    Registered Users Posts: 4,435 ✭✭✭mandrake04


    Batgurl wrote: »
    Interesting. Never heard this.

    So part year resident? Does this only apply to people who didnt tick resident for tax purposes? Or is it just 417 visas. Or is it also 457 visas seeing as they are temporary visa holders as well?

    Firstly to answer your question a part year resident is simply someone who arrived part way though the tax year

    Actually I went to ATO to quote the rules for being a resident for tax purposes, which I assumed was living continuously in Australia for 6 months and the same place.

    And it seems to have changed 18th May this year from what I remember never sspecifically mentioned a working holidaymaker before.
    Are you an Australian resident for tax purposes?

    Generally, we consider you to be an Australian resident for tax purposes if you:

    have always lived in Australia or have come to Australia to live

    have been in Australia for more than half of the income year (unless your usual home is overseas and you don't intend to live in Australia - for example, you are a working holidaymaker)

    or are an overseas student enrolled in a course of study of more than six months duration.

    Most people who are born in Australia and are currently living in Australia are residents for tax purposes. You may still be a resident even though you are not physically in Australia - for example, if you go overseas on an extended holiday.
    If you have moved to Australia from overseas and intend to stay for the foreseeable future and set up connections with Australia, you may also be a resident of Australia for tax purposes.

    The standards we use to determine your residency status are not the same as those used by the Department of Immigration and Citizenship.

    I think that means 417 holder are no longer considered a resident for tax purposes, I suppose if you change to a 457 you would be as you are intending on staying for the foreseeable future.


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    #18
    darcy07
    Registered Users Posts: 94 ✭✭darcy07


    anyone recommend any good accountants in melbourne that have sorted there tax out im on a 457 since november was on a working holiday before that


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