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

Australian tax thread

Options
  • 08-06-2011 1:24am
    #1
    hussey
    Registered Users Posts: 6,240 ✭✭✭


    Okay, hopefully we can get all tax questions in here, rather than multiple threads.

    First things first, I am not a tax expert, but have done this a number of times, so know a fair bit about basic tax returns.

    How do I get a Tax File Number?
    View the ATO website here, it is easy and quick and will be delivered within a few days.

    Are you a Resident for tax purposes?
    This is important, it is not the same as a resident. This is about intent. If you intend on staying longer than 6 months then you can declare yourself a RfTP.
    Read more here

    Still confused? Use this wizard to see if you can be a RfTP

    Remember this is between you and the tax office.

    Tax returns
    Now for most people a return is pretty straight forward, you type in any income, take away any deductions (you can claim $300 a year without receipts), minus any tax you paid and voilà you are done.

    A sample 2010 tax return can be found here: http://www.boards.ie/vbulletin/showthread.php?p=67134622

    Medicare:
    Irish passport holders who are on temp visas (WHV/457) can claim medicare exemption (since we don't get medicare)
    Use this form to apply for medicare exemption.

    Takes about 4 weeks, once you apply for PR you no longer can claim medicare exemption and can apply for medicare.
    I have been asked twice to provide this form for the years I applied through etax, it is a lot easier and is kept on record at medicare to apply quickly.


«13456

Comments

  • Options
    #2
    mandrake04
    Registered Users Posts: 4,435 ✭✭✭mandrake04


    I posted this on the other thread before it was closed but since its relevant I will post it again.

    If you are from the 6 counties and on a Irish passport you are entitled to medicare, but you need to show your National Insurance card. You are entitled and not exempt even if you never owned a Brit passport.

    If you a travelling on a Brit passport of course you are entitled to Medicare without showing your NI card.


  • Options
    #3
    laoisforliam
    Registered Users Posts: 588 ✭✭✭laoisforliam


    Hey probably a stupid question but are tax returns only for people working on ABN or do people with a TFN also lodge one?


  • Options
    #4
    ballooba
    Registered Users Posts: 6,315 ✭✭✭ballooba


    laoisforliam wrote: »
    Hey probably a stupid question but are tax returns only for people working on ABN or do people with a TFN also lodge one?
    Everyone lodges a return.


  • Options
    #5
    Pisco Sour
    Closed Accounts Posts: 6,029 ✭✭✭Pisco Sour


    http://www.ato.gov.au/individuals/content.aspx?doc=/content/00216872.htm

    According to this link there appears to be a threshold for Medicare levy of $18,488. As I'll have only worked just under 5 months I am estimating that my gross earnings will be around $17,500. Am I right in assuming I don't need to bother applying for the medicare exemption as I am underneath this threshold anyway?

    Good idea for a thread. Maybe could a "sticky" be put on it with it coming close to tax year end?


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


    That's correct, you don't need to apply, as you are under the threshold.

    Yeah I'll make it a sticky nearer tax year end.


  • Advertisement
  • Options
    #7
    ballooba
    Registered Users Posts: 6,315 ✭✭✭ballooba


    04072511 wrote: »
    Am I right in assuming I don't need to bother applying for the medicare exemption as I am underneath this threshold anyway?
    Aren't you an accountant? No, you don't need an exemption if you are under the threshold.


  • Options
    #8
    Pisco Sour
    Closed Accounts Posts: 6,029 ✭✭✭Pisco Sour


    ballooba wrote: »
    Aren't you an accountant? No, you don't need an exemption if you are under the threshold.

    I was 99% sure. Just thought I'd ask, and be safe rather than sorry.


  • Options
    #9
    Feelgood
    Registered Users Posts: 2,191 ✭✭✭Feelgood


    Thanks for the thread and info hussey.

    Does anyone have any solid details on expenses that can be claimed?.
    I'm a daily rate contractor so I believe I can claim the following expenses although this is completely hearsay. I have absolutely no doco to back this up.

    a. The price of a laptop (I heard you can claim the price of one laptop per year)
    b. The price of a mobile phone and the percentage of business calls.
    c. A percentage of your home internet or mobile broadband costs for business use.
    d. Around 30% of flights home.
    e. Stationary and postage

    I think this is about all I have?. Is there anything thats on here than shouldnt be or is there something that maybe I should have on here?.

    Cheers


  • Options
    #10
    linola_c
    Registered Users Posts: 198 ✭✭linola_c


    Hi Everyone!!!

    I have been living here for 4 months on a WHV and was told to declare myself as a non resident when filling out my tax declaration - when I started work here!!! I am now aware that this means I am paying higher tax rates. I am intending to stay on in Australia for many years to come.

    My bf is only filling out his tax dec form now and it will be backdated for the period he has worked. Because, we have only lived in Australia for 4 months - would this automatically exempt us from being eligible to declare ourselves as Residents for tax purposes?

    I have been earning around $1000 bucks a week for the past few months, as I am a non resident for tax purposes - will this virtually mean I will get sweet FA back?!

    Cheers in advance :)


  • Options
    #11
    hussey
    Registered Users Posts: 6,240 ✭✭✭hussey


    Feelgood wrote: »
    a. The price of a laptop (I heard you can claim the price of one laptop per year)
    This was the case, not sure if it still is,
    b. The price of a mobile phone and the percentage of business calls.
    You can claim a percentage of your mobile phone price, if it is 100% for business then 100%
    c. A percentage of your home internet or mobile broadband costs for business use.
    correct
    d. Around 30% of flights home.
    Nope, not at all. You are getting mixed up with LAFHA
    e. Stationary and postage
    Yes, but seriously? How much postage does an IT contractor go through legitimately 0?

    You can also claim harddrives etc (again if you use for business)

    You can check on ATO website for details about laptop


  • Advertisement
  • Options
    #12
    hussey
    Registered Users Posts: 6,240 ✭✭✭hussey


    linola_c wrote: »
    Hi Everyone!!!

    I have been living here for 4 months on a WHV and was told to declare myself as a non resident when filling out my tax declaration - when I started work here!!! I am now aware that this means I am paying higher tax rates. I am intending to stay on in Australia for many years to come.

    My bf is only filling out his tax dec form now and it will be backdated for the period he has worked. Because, we have only lived in Australia for 4 months - would this automatically exempt us from being eligible to declare ourselves as Residents for tax purposes?

    I have been earning around $1000 bucks a week for the past few months, as I am a non resident for tax purposes - will this virtually mean I will get sweet FA back?!

    Cheers in advance :)

    did you read my first post? The answer is there - You can claim to be a RfTP as it is about intent .. you can use the wizard too ... come on, the thread isn't that big!

    You can claim to be a RfTP after 1 day in Australia ....


  • Options
    #13
    ellaq
    Registered Users Posts: 311 ✭✭ellaq


    hussey wrote: »
    did you read my first post? The answer is there - You can claim to be a RfTP as it is about intent .. you can use the wizard too ... come on, the thread isn't that big!

    You can claim to be a RfTP after 1 day in Australia ....

    I don't know. I still read it differently. Must be in the country for 6 months or more or half the financial year.

    http://www.ato.gov.au/taxprofessionals/content.aspx?doc=/content/64131.htm


  • Options
    #14
    ballooba
    Registered Users Posts: 6,315 ✭✭✭ballooba


    ellaq wrote: »
    I don't know. I still read it differently. Must be in the country for 6 months or more or half the financial year.

    http://www.ato.gov.au/taxprofessionals/content.aspx?doc=/content/64131.htm
    The 183 day rule is only the last resort rule. The first two are: Common law test of where you dwell, the domicile test (3 types of domicile).

    Edit: Have a look under "resident or resident of Australia" means: here: http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1936240/s6.html


  • Options
    #15
    hussey
    Registered Users Posts: 6,240 ✭✭✭hussey


    ellaq wrote: »
    I don't know. I still read it differently. Must be in the country for 6 months or more or half the financial year.

    http://www.ato.gov.au/taxprofessionals/content.aspx?doc=/content/64131.htm

    I'm right ... if you intend to stay for at least 6months then you are ....

    If you filled out the wizard it would tell you this ...


  • Options
    #16
    ballooba
    Registered Users Posts: 6,315 ✭✭✭ballooba


    Another important point there is that even if you have been in Australia for over 183 days you can still be non-resident.


  • Options
    #17
    Mellor
    Registered Users Posts: 39,105 ✭✭✭✭Mellor


    hussey wrote: »
    Medicare:
    Irish passport holders who are on temp visas (WHV/457) can claim medicare exemption (since we don't get medicare)
    Use this form to apply for medicare exemption.

    Takes about 4 weeks, once you apply for PR you no longer can claim medicare exemption and can apply for medicare.
    I have been asked twice to provide this form for the years I applied through etax, it is a lot easier and is kept on record at medicare to apply quickly.

    I never bother with medicare exemption in previous years, basically I didn't know about it until I had lodged. How much is it worth roughly? I have a figure of 1.5% in my head.

    Basically I can't apply until I get a new passport (I assume). I kinda want the tax refund money asap, as I'll be buying flights home for xmas, and they'll start to go up soon. Is there ANY way I can claim exemption without waiting?

    can I tick the box and hope they don't ask for it, if they do i can deal with it then?


  • Options
    #18
    hussey
    Registered Users Posts: 6,240 ✭✭✭hussey


    Mellor wrote: »
    I never bother with medicare exemption in previous years, basically I didn't know about it until I had lodged. How much is it worth roughly? I have a figure of 1.5% in my head.

    Basically I can't apply until I get a new passport (I assume). I kinda want the tax refund money asap, as I'll be buying flights home for xmas, and they'll start to go up soon. Is there ANY way I can claim exemption without waiting?

    can I tick the box and hope they don't ask for it, if they do i can deal with it then?

    You can apply for any previous years also.
    Yes you can click the box and not get the form until you have your passport, assuming you are eTaxing it rather than a paper application

    and yes 1.5% of wages, which over a couple of years can be worth something decent.


  • Options
    #19
    Doc
    Registered Users Posts: 2,670 ✭✭✭Doc


    hussey wrote: »
    Yes you can click the box and not get the form until you have your passport, assuming you are eTaxing it rather than a paper application

    and yes 1.5% of wages, which over a couple of years can be worth something decent.

    Did this last year I have never bothered to filled out the form and apply for Medicare exemption the eTaxing thing makes it so easy to do everything.


  • Options
    #20
    hussey
    Registered Users Posts: 6,240 ✭✭✭hussey


    well they do ask, here a letter they sent me for 2009 records

    They also sent me a letter for 2008.

    I was lucky as I lost the original letter, but medicare just reprinted it, otherwise I would have had to apply all over again - which would have been difficult as my old passport is somewhere in my house in ireland

    My advice is better safe than sorry, we're all eligible, so just apply as in 2/3 years time who knows where your passport will be


  • Options
    #21
    Mellor
    Registered Users Posts: 39,105 ✭✭✭✭Mellor


    Mellor wrote:
    I never bother with medicare exemption in previous years, basically I didn't know about it until I had lodged. How much is it worth roughly? I have a figure of 1.5% in my head.

    Just checked my tax return from last year.
    Turns out I did claim it after all. Or rather my tax agent put it down, 365 full exemption.


    i'm still not sure if I'll etax it this year or just go back to the agent.

    Pros for eTax: It's free. It's easy.
    Pros for agent: May advise of other areas I can claim that I might not know or think of, will also know how far I can "push it"


  • Advertisement
  • Options
    #22
    Feelgood
    Registered Users Posts: 2,191 ✭✭✭Feelgood


    hussey wrote: »
    You can apply for any previous years also.

    and yes 1.5% of wages, which over a couple of years can be worth something decent.

    So if you didn't apply for the medicare exemption on last years tax return, you can double up this year?. Thats a pretty sweet deal.

    Mellor wrote: »
    i'm still not sure if I'll etax it this year or just go back to the agent.

    Any recommendations on an agent Mellor?. I'm thinking of going with one
    and pulling as much info as I can off them so I can do my own next year.


  • Options
    #23
    ballooba
    Registered Users Posts: 6,315 ✭✭✭ballooba


    Feelgood wrote: »
    So if you didn't apply for the medicare exemption on last years tax return, you can double up this year?. Thats a pretty sweet deal.
    Hehe. Sweet!;) Not that simple though I suspect, I think you would actually need to request a review of your prior years return. I don't know how difficult that is. Essentially you tell the ATO you made a mistake.


  • Options
    #24
    Poker Engineer
    Closed Accounts Posts: 39 ✭Poker Engineer


    Ok im a little confused by the website so could anybody clear this up form me.
    my girlfriend and i have been in melbourne since late feb and have been working for about 3 months in office jobs, we are planning on living in our apartment for the full 6 months of the lease at least and plan on staying on beyond that. Are we entitled to claim tax back? and how much.


  • Options
    #25
    ballooba
    Registered Users Posts: 6,315 ✭✭✭ballooba


    Poker Engineer wrote: »
    Ok im a little confused by the website so could anybody clear this up form me.
    my girlfriend and i have been in melbourne since late feb and have been working for about 3 months in office jobs, we are planning on living in our apartment for the full 6 months of the lease at least and plan on staying on beyond that. Are we entitled to claim tax back? and how much.
    What rate have you been taxed at roughly?


  • Options
    #26
    Poker Engineer
    Closed Accounts Posts: 39 ✭Poker Engineer


    I havnt checked exactly but its somewhere above 30% i think.


  • Options
    #27
    ballooba
    Registered Users Posts: 6,315 ✭✭✭ballooba


    Poker Engineer wrote: »
    I havnt checked exactly but its somewhere above 30% i think.
    Then you're likely being taxed as if you have been working in Aus all year, you should be due a refund of about 75% of that tax I reckon. Use the wizard that Hussey linked to see if you're tax resident. There's also a tax calculator to work out how much you owe, you can compare that to how much you have paid.


  • Options
    #28
    Poker Engineer
    Closed Accounts Posts: 39 ✭Poker Engineer


    So it doesnt matter that im in the country less than 6 months? The calculator is on the tax website i take it.


  • Options
    #29
    ballooba
    Registered Users Posts: 6,315 ✭✭✭ballooba


    Poker Engineer wrote: »
    So it doesnt matter that im in the country less than 6 months? The calculator is on the tax website i take it.
    http://www.ato.gov.au/individuals/content.aspx?doc=/content/26030.htm&mnu=42585&mfp=001

    Being in the country less than 6 months does not affect your requirement to lodge a return. Use the wizard linked above to find out if you are resident.


  • Options
    #30
    hussey
    Registered Users Posts: 6,240 ✭✭✭hussey


    Poker Engineer wrote: »
    Ok im a little confused by the website so could anybody clear this up form me.
    my girlfriend and i have been in melbourne since late feb and have been working for about 3 months in office jobs, we are planning on living in our apartment for the full 6 months of the lease at least and plan on staying on beyond that. Are we entitled to claim tax back? and how much.

    It depends how much you have earnt, anything below 64k you are entited to a Low Income Tax Offset too
    you can check here for calculator http://www.ato.gov.au/individuals/content.aspx?doc=/content/32032.htm

    The wizards are in the first post, also a quick wizard to say how much you got back is here: http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=ctax2010.xr4&go=ok (well for 2010)
    but can give you a rough idea.
    Feelgood wrote:
    So if you didn't apply for the medicare exemption on last years tax return, you can double up this year?. Thats a pretty sweet deal.
    Where did you get that from? completely untrue ... you can make an adjustment to previous years tax returns and relodge it.
    Mistakes happen the tax guys are forgiving (unless it is fraud)


  • Advertisement
  • Options
    #31
    Feelgood
    Registered Users Posts: 2,191 ✭✭✭Feelgood


    hussey wrote: »
    You can apply for any previous years also.
    hussey wrote: »
    Where did you get that from? completely untrue ...

    I got it from you! :D

    I thought you meant that you could apply for any previous years medicare
    exemption that you haven't already received and tally them up. My bad. :)


Advertisement