tax question

chrispym

Hi help me if you can... I was told that when I start working I am a non-resident for tax purposes meaning that i would have to pay 29% tax on my wages every week but then when I leave australia I am entitled to 75% of this money back could anybody tell me wether this info is correct or not? Or would i be better off saying i was a resident for tax purposes so that i only get taxed 15% after the first $6000 and before anyone starts saying im not a resident for tax purposes, I quote the aus gov website

If you: are visiting Australia for more than six months and for most of that time you live at the same place, and you either have or establish ties in the local community
You are generally: an Australian resident for tax purposes.

Also I was given a tax declaration file and I chose non-resident if this was the wrong choice (i.e is not the most beneficial to me) can I change it to resident for tax purposes??
Hopefully someone can help

hussey

That 75% bit isn't true.
But to answer your question we need to know if you are a resident for tax purposes.
Have you or do you intend to live and work in one area for 6moths or so?

The ONLY WAY you can get tax back in Australia is if you are a resident for tax purpose.

People often mistake tax in Australia, especially when they use backpacker tax-back companies. In reality these companies just say you are a resident for tax purposes, hence getting a chunk of money back and them keeping a %

Mellor

Don't get to choose which it is.

Either you are a non-resident and pay 29%
Or you are a resident and pay 15%

Tax back is just claiming back excess over these amounts, or tax deductions, or medicare levys.

chrispym

Mellor wrote: »

Don't get to choose which it is.

At the start of employment they give you a tax declaration form and you can choose either resident or non-resident therefore its a choice if you want to stay in the one place for more than 6 months!

hussey

chrispym wrote: »

At the start of employment they give you a tax declaration form and you can choose either resident or non-resident therefore its a choice if you want to stay in the one place for more than 6 months!

He means, it's not a choice as if you are a resident for tax purposes, but you have a choice as to say you are or not.

Like a tick box for married people. You can tick it if you are single, but that doesn't make you married

Mellor

chrispym wrote: »

At the start of employment they give you a tax declaration form and you can choose either resident or non-resident therefore its a choice if you want to stay in the one place for more than 6 months!

The form is purely for your payroll dept to estimate what to set aside over the coming year. It has no impact on your actual status which is what the end of year tax return is based on.

If you qualify for resident status, I imagine that will have you paying far less tax. As the tax year is almost over, you can lodge a tax return as a resident and explain to the payroll dept that you wish tax to be calculated as a resident from next year (which starts nest week).