Tax Return

Feelgood

Seen its my first year in Oz I'm half considering getting an accountant to file my tax return for me. What do you lads generally do?.

An accountant is charging about $150 to submit it. I know there is the Etax online submission but I really don't have a clue what I am doing or whats involved.

The other thing that was mentioned to me was the Medicare exemption levy, apparently its in the region of $1500?. Anyone know anything about this?

ballooba

You need to contact Medicare about getting a Medicare exemption. I think they confirm it over the phone but you need the letter for your records. It's a question on the tax return and you claim full exemption.

The tax return itself is pretty straightforward as long as your income situation is. I don't think you need an accountant in this case.

The cost of the accountant is deductible against next years return, but that just means it costs you minimum $87 if you earn at the top rate of tax (i.e. less 42%).

ellaq

Etax is pretty straight forward for most situations. Turn around for us has always been about 14 days from submission.

You are exempt from the Medicare levy of 1.5% if you not an australian resident.

http://www.ato.gov.au/individuals/content.aspx?menuid=0&doc=/content/00250854.htm&page=8&H8

I guess this is offset by the higher tax rates.

Feelgood

Excellent chaps, thanks for that.

So I take it I should be looking for the medicare exemption now before even submitting my tax return?.

I was on a WHV from last October up until about 2 months ago and am now on 457, but I have been getting LAFHA since about November. Does the visa you are on have any bearing on tax?.

I also presume that someone on a WHV qualifies for Medicare exemption?

hussey

There is no higher tax rates(??) not for resident for tax purposes (which is not the same as a resident)

You need to do a search on this forum - every year in dept tax threads go around

In fact last year I even filled out an example eTax 2010

You'll need to send away certified copies of your passport to hobart and fill out the medicare exemption takes a month.

Etax is easy, unless you have a tricky tax return then don't pay someone $150 for something you do yourself.

I'll post up a tax thread soon enough, I've done it many times so can hopefully stick it in one giant thread.

As you can see this forum people tend to ignore threads and just create their own anyway (e.g. 1 WHV thread a day )

ballooba

Feelgood wrote: »

So I take it I should be looking for the medicare exemption now before even submitting my tax return?.

Technically, yes. But I don't think anyone is going to hang you for not confirming with Medicare.

Feelgood wrote: »

I was on a WHV from last October up until about 2 months ago and am now on 457, but I have been getting LAFHA since about November. Does the visa you are on have any bearing on tax?.

No difference. Only difference is between resident for tax purposes and non-resident. If you're eligible for Medicare benefits (not sure if you are on PR) then you don't get the exemption that temporary residents get.

LAFHA has nothing to do with your tax return because it is a fringe benefit and fringe benefits are taxable on the employer, not the employee.

hussey

ballooba wrote: »

Technically, yes. But I don't think anyone is going to hang you for not confirming with Medicare.

I've been asked 3 times by the tax office for that record! So 100% get it, it doesn't take any effort, but it takes a huge effort 3 years later if you never applied

Feelgood

hussey wrote: »

You need to do a search on this forum - every year in dept tax threads go around
In fact last year I even filled out an example eTax 2010

Sorry Hus, now that you mentioned it I remember reading your thread a few months back. I forgot all about it!.

hussey wrote: »

Etax is easy, unless you have a tricky tax return then don't pay someone $150 for something you do yourself.

One of the main reasons I was going with an accountant was because of expenses.
I have very fragmented info on what can and can't be claimed.
Laptop, phone, internet, travel, someone even told me I could claim back the
price of suits for work!. I just don't want to take the piss and draw attention
to myself considering I am also getting LAFHA. I thought it might be best for an accountant
to give me the skinny on expenses?.

ellaq

hussey wrote: »

There is no higher tax rates(??) not for resident for tax purposes (which is not the same as a resident).

From what I can understand you are either a non resident for tax purposes where you don't pay the medicare levy but also do pay a higher rate of tax (ie. a base rate of 29%) or you are a resident for tax purposes and you pay the standard rate of taxes but also have to pay the levy.

http://calculators.ato.gov.au/scripts/axos/AXOS.asp

I don't know what visa you are on Feelgood.

http://www.ato.gov.au/individuals/content.aspx?doc=/content/12333.htm&mnu=5464&mfp=001/002

Feelgood, you probably guessed it, you can't claim for suits for work, you can't even claim for their laundry. All the information for what you can claim is on the ATO. But if you are not confident a tax agent certainly helps and they are not that expensive. My friend works for the ATO and he once told me any person claiming more than $10k in deductions is automatically flagged.

ballooba

ellaq wrote: »

From what I can understand you are either a non resident for tax purposes where you don't pay the medicare levy but also do pay a higher rate of tax (ie. a base rate of 29%) or you are a resident for tax purposes and you pay the standard rate of taxes but also have to pay the levy.

That's incorrect. You can still be resident for tax purposes and be exempt from the levy.

ellaq wrote: »

Feelgood, you probably guessed it, you can't claim for suits for work, you can't even claim for their laundry. All the information for what you can claim is on the ATO. But if you are not confident a tax agent certainly helps and they are not that expensive. My friend works for the ATO and he once told me any person claiming more than $10k in deductions is automatically flagged.

There's a peculiarity around work clothing with logos on. Other than that, non-deductible. The essential character of the expense is personal, not work related. But for your job, would you wear clothing?

hussey

ellaq wrote: »

From what I can understand you are either a non resident for tax purposes where you don't pay the medicare levy but also do pay a higher rate of tax (ie. a base rate of 29%) or you are a resident for tax purposes and you pay the standard rate of taxes but also have to pay the levy.

Nope that is not correct, you can be a resident for tax purposes and not pay medicare - (I know as most of us here have done it for years)

please see here - nothing to do with tax status.

ellaq

And are you guys still entitled to medicare?

ballooba

ellaq wrote: »

And are you guys still entitled to medicare?

No.

hussey

ellaq wrote: »

And are you guys still entitled to medicare?

I am a permanent resident so i am entitled to it, but Irish are not entitled to it on a temp visa (hence why you don't pay medicare levi)

mandrake04

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 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.

hussey

Closing this thread and have opened a new one http://www.boards.ie/vbulletin/showthread.php?t=2056291879

which outlines the basic and has a link to a sample 2010 tax return