Income Tax Assessment

Davidson2k9

My brother did a small bit of work in Oz a few months ago and he tried to claim tax back but instead he got an Income Tax Assessment saying he owes $74. What is this how can he owe tax for working when he paid tax over there?

mandrake04

Davidson2k9 wrote: »

My brother did a small bit of work in Oz a few months ago and he tried to claim tax back but instead he got an Income Tax Assessment saying he owes $74. What is this how can he owe tax for working when he paid tax over there?

Obviously he didn't pay enough, you only get back what you have overpaid.

hussey

That or he didn't fill in his tax correctly

Nick Diamond

happened to me, cept i ended up oweing them 600 blips.

What probably happened was your bro did tax under the wrong tax bracket (an aussie resident) as most people do, but he wasn't actually one because he didn't fulfil the 183 day rule.

They copped this and said, hold on you didn't pay enough tax, then boom your hit with a charge for what you owe.

I was looking forward to a nice tax return of ~3k, filled the form in wrong not including 2 days work i did on a farm, boom, investigated, boom delay of 4 months! and smash, 600 dollar penalty...

Not a nice feeling

Spirow

I would say that you are spot on.
Tax Residency Status is the biggest cause of people not getting taxed as they expect.
Basically, Australia taxes any temporary foreign workers at 29c in the dollar up to $35k and 30c in the dollar over that.
Unless you are intend on staying in the same job for an extended period (more than 3 months), you are not treated as Australian for tax purposes.

That means most backpackers / temporary workers should pay 29% tax at least, unless they set up home in one place for a year

<snip>Mod please no pimping of your site thanks

Mellor

Spirow wrote: »

I would say that you are spot on.
Tax Residency Status is the biggest cause of people not getting taxed as they expect.
Basically, Australia taxes any temporary foreign workers at 29c in the dollar up to $35k and 30c in the dollar over that.
Unless you are intend on staying in the same job for an extended period (more than 3 months), you are not treated as Australian for tax purposes.

That means most backpackers / temporary workers should pay 29% tax at least, unless they set up home in one place for a year

<snip>Mod please no pimping of your site thanks

Em, no.
On a WHV you are taxed as a resident

Nick Diamond

Mellor wrote: »

Em, no.
On a WHV you are taxed as a resident

Not true, you should be taxed as a non resident unless you fulfill the 183 day rule

That being said, it is more common than not that people tick yes on the tax form for resident. This isn't technically correct though

Mellor

Nick Diamond wrote: »

Not true, you should be taxed as a non resident unless you fulfill the 183 day rule

That being said, it is more common than not that people tick yes on the tax form for resident. This isn't technically correct though

The majority of people will fufil the 6 month/183 day rule.
i never said every single person was a tax resident. I was responding to the post above which said.

Spirow wrote: »

Basically, Australia taxes any temporary foreign workers at 29c in the dollar up to $35k and 30c in the dollar over that.
Unless you are intend on staying in the same job for an extended period (more than 3 months), you are not treated as Australian for tax purposes.

That means most backpackers / temporary workers should pay 29% tax at least, unless they set up home in one place for a year

Any temp workers - wrong
Same job - wrong. Can be in multiple jobs (consider farmwork etc), or even ABN etc
Most backpackers, most people here on a wHV aren't backpackers, at least as far as this forum is concerned.


Basically the post was here to pimp their own site, I was indirectly say GTFO

hussey

Nick Diamond wrote: »

Not true, you should be taxed as a non resident unless you fulfill the 183 day rule

That being said, it is more common than not that people tick yes on the tax form for resident. This isn't technically correct though

not true, the ATO use the word intent.

Which means if you land and intend to stay in one job/area then you can be classed as a ARFTP ....

This is between you and the ATO