Australia Tax Residence

louise1985 · 08-09-2014 11:21pm #1

Can someone advise me on residence for tax purposes in Australia. Basically I arrive in Australia in September 2013, lived and worked in Sydney until August 2014. My question is am I tax resident for 2014-15, as I have been living and working in one place for 6 months ( worked in same company from February 14 to August 14)
Appreciate Your help on this as tax wise it's a huge difference

Mellor · 09-09-2014 1:15am

You are a tax resident for 2013-2014. (tax year ending June 2014).

2014-2015 hasn't happened yet, but you'll remain a tax resident.

louise1985 · 15-09-2014 9:19am

Mellor wrote: »

You are a tax resident for 2013-2014. (tax year ending June 2014).

2014-2015 hasn't happened yet, but you'll remain a tax resident.

Thanks Mellor, I forgot to mention I returned to Ireland for good in August 2014, can I still claim residency for tax purposes for 2014-15 as I want to file my return early as my visa has expired.
As my one job was across two financial periods I was classed as resident for the few weeks I worked in 14-15.

Thanks

eoghan101 · 30-09-2014 11:34am

louise1985 wrote: »

Thanks Mellor, I forgot to mention I returned to Ireland for good in August 2014, can I still claim residency for tax purposes for 2014-15 as I want to file my return early as my visa has expired.
As my one job was across two financial periods I was classed as resident for the few weeks I worked in 14-15.

Thanks

Ya, just put down an Australian address on the form if you don't want to be audited!

frankled · 09-10-2014 8:28am

Anybody know what the best time is for lodging your tax return early? Myself and my girlfriend are still in the first year of the working-holiday visa, and are flying home exactly a year from when we arrived in December. We’re finishing work tomorrow, therefore we would only have worked 102 days of the 2014/15 financial year. Until we leave, we will have been in Australia for 157 days of the current financial year- but only residing in the same place for 104 days.

Previously we were in the same place for over 6 months and got our full tax back (more or less). Now, the tax amount we have built up is greater but I am afraid that we may not get it all back, as I was under the impression that you have to be residing in one place/working for a certain amount of time. As I said, we are still in year one of the WHV so I would think we should be okay there.

Can anybody shed some light on this?

aido79 · 09-10-2014 11:04am

frankled wrote: »

Anybody know what the best time is for lodging your tax return early? Myself and my girlfriend are still in the first year of the working-holiday visa, and are flying home exactly a year from when we arrived in December. We’re finishing work tomorrow, therefore we would only have worked 102 days of the 2014/15 financial year. Until we leave, we will have been in Australia for 157 days of the current financial year- but only residing in the same place for 104 days.

Previously we were in the same place for over 6 months and got our full tax back (more or less). Now, the tax amount we have built up is greater but I am afraid that we may not get it all back, as I was under the impression that you have to be residing in one place/working for a certain amount of time. As I said, we are still in year one of the WHV so I would think we should be okay there.

Can anybody shed some light on this?

Why do you think you will get it all back? The earliest date to lodge a tax return to get a maximum return would be 1st July next year because if you lodge it before that you will be assessed on a pro rata basis and you may not be able to claim for the full tax free allowance (or whatever its called in Australia).

frankled · 09-10-2014 1:35pm

There is a part of the form to declare the tax-free threshold, so I would assume this would take this into account- therefore I would imagine it does not matter when the return is filed. It is also asked whether this is your last tax return. I would imagine this covers it?

I think (or rather hope) that most of it would be paid back, as that was the case for my first return, for 2013-14, in which I worked 4 months. I've been told that for the first year of the WHV you generally receive nearly all of it too.

eoghan101 · 09-10-2014 3:08pm

frankled wrote: »

There is a part of the form to declare the tax-free threshold, so I would assume this would take this into account- therefore I would imagine it does not matter when the return is filed. It is also asked whether this is your last tax return. I would imagine this covers it?

I think (or rather hope) that most of it would be paid back, as that was the case for my first return, for 2013-14, in which I worked 4 months. I've been told that for the first year of the WHV you generally receive nearly all of it too.

The tax-free thresshold is for "Australian residents for tax purposes". To be qualified as a Australian resident for tax purposes in this way, you must be working in the country for 6 month of the tax year.

I think if you apply for your tax next june/july using a Australian address on the form and as a "australian resident for tax purposes" you should be in the that tax free threshold unless your randomly audited.

Taxable income Tax on this income
0 – $18,200 Nil
$18,201 – $37,000 19c for each $1 over $18,200
$37,001 – $80,000 $3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000 $17,547 plus 37c for each $1 over $80,000
google.... ato gov au individuals/income-and-deductions/how-much-income-tax-you-pay/individual-income-tax-rates/

aido79 · 09-10-2014 3:23pm

frankled wrote: »

There is a part of the form to declare the tax-free threshold, so I would assume this would take this into account- therefore I would imagine it does not matter when the return is filed. It is also asked whether this is your last tax return. I would imagine this covers it?

I think (or rather hope) that most of it would be paid back, as that was the case for my first return, for 2013-14, in which I worked 4 months. I've been told that for the first year of the WHV you generally receive nearly all of it too.

It would depend on how the ato view your tax residence status.

When doing a tax return you will not be asked what visa you are on. It is a common misconception that people get all of their tax back on their first whv. They usually get alot of it back because they have only worked for part of the year and the tax has been worked out as an average for the entire year on their weekly earnings and is then worked out properly when they do a tax return at the end of the year.

massdebater · 10-10-2014 5:23am

Just to jump in here. This might be a silly question but if you're an Australian permanent resident, do you automatically qualify as being a 'resident for tax purposes' or do you still need to meet the 6 months requirement? Say if I had PR and worked for 5 months of the tax year but took a 7 month holiday, would I still be a resident for tax purposes?

aido79 · 10-10-2014 8:02am

massdebater wrote: »

Just to jump in here. This might be a silly question but if you're an Australian permanent resident, do you automatically qualify as being a 'resident for tax purposes' or do you still need to meet the 6 months requirement? Say if I had PR and worked for 5 months of the tax year but took a 7 month holiday, would I still be a resident for tax purposes?

Simple answer is no. They are completely different things.

Australia Tax Residence

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