Australian tax thread 2012

hussey

Hey folks, going to add a tax thread here, so we can collate the Q&A, as most of them are simple.

I will add an example tax return too for eTax 2012
The first thing you should do is have a look at last years thread
found: http://www.boards.ie/vbulletin/showthread.php?p=72639220

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 and length of stay. 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.

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.

Items that are tax deductible are taken away from your taxable income rather than taken away from tax.

e.g. you earn 40000 and have expenses of 1000, your taxable income is 39000. not tax-1000.

massdebater

Going through a tax agent this year as this is my first Aus tax return. Applying for my Medicare exemption tomorrow. Will wait for that to come back and then off to my accountant to lodge the tax return. Am I right in saying that I'll need confirmation of the Medicare exemption before I can claim that back i.e. I'll have to wait a few weeks before I can lodge my tax return? I'd rather send everything in one go if possible.

My accountant should be up to speed with how far I can "push" the tax return in terms of how much I can claim back e.g. the $300 without receipts, claiming back for money paid to charities etc. Are there any other common payments that can be claimed back?

Does anyone know if I can claim back the tax paid on the interest of my savings? Think it's called witholding tax or something like that?

hussey

here are two very simple examples for etax 2012.
A basic earn money and pay tax example, without many deductions.

The TFN is an example and not a real one: 100 000 001 so don't try submit it or will fail

Mellor

massdebater wrote: »

Am I right in saying that I'll need confirmation of the Medicare exemption before I can claim that back i.e. I'll have to wait a few weeks before I can lodge my tax return?

No. You don't need the medicare exemption letter before you can claim that back. You are already exempt if you are from the RoI, the application is just for a written statement to that effect.
I claimed the exemption the last two years but I've never been asked for proof. If they do ask i'll apply for the written proof then.

rightyabe

Could I claim $300 on D5 "other work related expenses" and also claim on D3"work related uniform and PPE"

What is the difference? Do I need to show evidence of either?

Also what is the $712 tax offset? How is it calculated?

hussey

rightyabe wrote: »

Could I claim $300 on D5 "other work related expenses" and also claim on D3"work related uniform and PPE"

What is the difference? Do I need to show evidence of either?

Also what is the $712 tax offset? How is it calculated?

One (uniform) is a specific common expense, the the other is a general category that covers everything else. You will need to show evidence of both if asked by the ATO (well over 300 for 'other')

hussey

massdebater wrote: »

Does anyone know if I can claim back the tax paid on the interest of my savings? Think it's called witholding tax or something like that?

Yes, you can. That tax should be added to your total bill. But interest on saving is classed as earnings here, so will usually have to pay some tax.

s.c

hussey wrote: »

you can claim $300 a year without receipts

You may not require receipts for work related expenses up to $300 but you need to be able to demonstrate how you calculated these expenses if you are asked.

s.c

rightyabe wrote: »

Could I claim $300 on D5 "other work related expenses" and also claim on D3"work related uniform and PPE"

What is the difference? Do I need to show evidence of either?

You can claim for anything you like. Whether you are able to show that these were legitimate expenses if investigated is another thing.

Whipping Boy

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.

This link appears to be broken?

Also, I'm currently doing the e-tax thing and all is going well except when I got the questions on super-annuities (Income - 7/8). I'm confused as to whether to fill this out or not. I have an account with Recruitment Super and have $990 in this but FAIK claiming your super back is a separate process which could only be done when you had left the country for 6 months? (I'm currently back in Ireland approx 2 months)

Any help would be much appreciated.

hussey

Whipping Boy wrote: »

This link appears to be broken?

Also, I'm currently doing the e-tax thing and all is going well except when I got the questions on super-annuities (Income - 7/8). I'm confused as to whether to fill this out or not. I have an account with Recruitment Super and have $990 in this but FAIK claiming your super back is a separate process which could only be done when you had left the country for 6 months? (I'm currently back in Ireland approx 2 months)

Any help would be much appreciated.

Link fixed. No don't fill that out, annuities are for lump payments from super companies.
Yes claiming super is a separate process. As far as I know you can claim it once you have left for good and don't need to wait.

Whipping Boy

Thanks for that Hussey, much appreciated. Final quick question - I'm back in Ireland now for good and didn't have any hospital/doctor fees while in Oz - can I still apply for the medicare exemption? And if so, should it be done before or after the etax application or does it matter? Cheers in advance

hussey

Whipping Boy wrote: »

Thanks for that Hussey, much appreciated. Final quick question - I'm back in Ireland now for good and didn't have any hospital/doctor fees while in Oz - can I still apply for the medicare exemption? And if so, should it be done before or after the etax application or does it matter? Cheers in advance

Yes, all people from the republic of ireland who are/were on a temp visa (457/WHV) are entitled medicare levy exemption.

Ideally you should apply before submitting your eTax.

Whipping Boy

Great stuff, thanks for that Hussey.

Nedbroy

I'm on a WHV, working since start of december, 6 months in one company, and temping with an agency at the moment. I have been paying the resident for tax purposes rate and intend to work a couple months more before I travel then go home. If I lodge a tax return as RFTP on e-tax will I get the majority of my tax back because I am on a WHV?

darcy07

anybody know any good agencys/agents in the melbourne area that will do the work for me im not very tax savvy im working in an office job over a month

im on a 417 working holiday visa

---

Y.T.D :
Gross Earn 5884.05
tax 1355.00
hecs 14.50
net pay 4543.55


Super Fund Name MTD YTD
Recruitment Superannuation 362.03 520.26

---

this is my latest payslip haven't a clue what to do reading all the threads on here but the language used may as well be Chinese

hussey

Nedbroy wrote: »

I'm on a WHV, working since start of december, 6 months in one company, and temping with an agency at the moment. I have been paying the resident for tax purposes rate and intend to work a couple months more before I travel then go home. If I lodge a tax return as RFTP on e-tax will I get the majority of my tax back because I am on a WHV?

WHV has nothing to do with your tax. You will get a good chunk back but because you only worked 1/2 the tax year, not because of any visa status (assuming a RfTP)

Princess_N

Hi Guys,

I am here almost a year now and have been working for about 8 months. I am defacto on a 457 visa. Do I still get to claim tax back like someone on a whv or is it different? Can't find much info online. On all forms I an a "resident for tax purposes" but a 457 is still a temporary visa.

Appreciate any help,

hussey

Princess_N wrote: »

Hi Guys,

I am here almost a year now and have been working for about 8 months. I am defacto on a 457 visa. Do I still get to claim tax back like someone on a whv or is it different? Can't find much info online. On all forms I an a "resident for tax purposes" but a 457 is still a temporary visa.

Appreciate any help,

All workers in Australia need to fill out a tax return. It is no different to a WHV, or a resident or a citizen. Resident for tax purposes does not equal resident visa status. It is exactly as stated, you are treated the same as a resident, but only for tax purposes. Which is a good thing.

s.c

darcy07 wrote: »

anybody know any good agencys/agents in the melbourne area that will do the work for me im not very tax savvy im working in an office job over a month

im on a 417 working holiday visa

---

Y.T.D :
Gross Earn 5884.05
tax 1355.00
hecs 14.50
net pay 4543.55


Super Fund Name MTD YTD
Recruitment Superannuation 362.03 520.26

---

this is my latest payslip haven't a clue what to do reading all the threads on here but the language used may as well be Chinese

If that is what you have earned in the last tax year then you would be entiled to get all your tax back ($1355)

g5fd6ow0hseima

Hi,

im in my first year of my WHV and I have calculated that i've earned roughly over 8,000 on my tax file number, but because i've ticket the lower tax bracket (RfTP), ive paid only about 1,300 in tax for the past year. So given that I haven't paid much tax, what would be the best thing for me to do in order to claim it back? As I don't have any tax certificates from my employers, do I have any other option than going through one of these taxback agencies who take their cut from my rebate? I presume that they take a bigger cut if you don't provide them with tax certificates / final payslips.

Also, on that last point, which taxback agency would you recommend?

s.c

Joel Unsightly Typographer wrote: »

Hi,

im in my first year of my WHV and I have calculated that i've earned roughly over 8,000 on my tax file number, but because i've ticket the lower tax bracket (RfTP), ive paid only about 1,300 in tax for the past year. So given that I haven't paid much tax, what would be the best thing for me to do in order to claim it back? As I don't have any tax certificates from my employers, do I have any other option than going through one of these taxback agencies who take their cut from my rebate? I presume that they take a bigger cut if you don't provide them with tax certificates / final payslips.

Also, on that last point, which taxback agency would you recommend?

You get a summary at the end of the tax year (now) from each company you have worked for in that year. You need this or at least your last payslip to complete your tax return. You should contact the companies you have worked for to ensure they have your current address.

Going by those figures, you would be entitled to get all the tax you paid back.

Mikester21

Its my first year being on LAFHA (since Oct) does anybody know how this will affect my tax return?

hussey

Joel Unsightly Typographer wrote:

....

As stated above companies are legally obliged to send you a end of year statement saying how much you earns how much you paid tax. It's still only a week in, so don't stress too much about not receiving it.

Please don't use a tax company. I have posted up an example etax form. It really is simple, in your case very simple. Just fill in income section (fill in first one and skip the rest), fill in deductions (tax) and make sure you fill in and apply for the Medicare levy exemption and viola - all tax back and save you 10% or $100 -

In the Medicare exemption levy type in 366 for days you were exempt, but make sure you submit the Medicare form

hussey

Mikester21 wrote: »

Its my first year being on LAFHA (since Oct) does anybody know how this will affect my tax return?

It should be like a normal tax return. On the statement it should state how much you earns, how much tax and how much benifit etc, there is also a Pre-fill option on etax which might contain all info you need (your company needs to send the ATO info first)

mobius42

Anyone else noticed that the pre-filling info isn't up yet for e-tax? I tried to file my return and it couldn't find anything besides what info it could roll over from last year's file.

ellaq

Your employer or previous employer has to issue a End of Year Statement by the 14th July.

Whipping Boy

Another question in etax just threw me - do I still have to apply for the medicare exemption (in the separate form) IF I'm under the low-income threshold as stated in etax (around $18/19k gross income if I remember correctly)? From the wording it appeared that if I earned under this amount I was automatically exempt from the medicare charge and thus, wouldn't have to apply for the exemption separately?

Mellor

Whipping Boy wrote: »

Another question in etax just threw me - do I still have to apply for the medicare exemption (in the separate form) IF I'm under the low-income threshold as stated in etax (around $18/19k gross income if I remember correctly)? From the wording it appeared that if I earned under this amount I was automatically exempt from the medicare charge and thus, wouldn't have to apply for the exemption separately?

It's not application for exemption, you are exempt regardless. It's a declaration of exemption only needed if they asked. If you earned under the threshold I don't imagine they'll ever ask for proof. So just go ahead.

up-&-at-dem

When doing my tax return online where can I upload/attach Pdf copies of my final payslips? I dont want to send it off without any proof of my earnings & taxes paid

hussey

up-&-at-dem wrote: »

When doing my tax return online where can I upload/attach Pdf copies of my final payslips? I dont want to send it off without any proof of my earnings & taxes paid

You don't. Only send PDF if 1) asked by the ATO 2) paper based applications

You really don't need to. Your employer will send this info to the ATO anyway. But if you want to print it all off and mail it

Feelgood

Mellor wrote: »

No. You don't need the medicare exemption letter before you can claim that back. You are already exempt if you are from the RoI, the application is just for a written statement to that effect.
I claimed the exemption the last two years but I've never been asked for proof. If they do ask i'll apply for the written proof then.

If you use a tax agent you will have to provide the medicare exemption certificate, they won't allow you to claim the medicare levy exemption without it.

I also had a couple of mates that were charged $200+ by tax agents to apply for a medicare exemption certificate. Worth noting its free to apply for it, don't let a tax agent charge you!.

Feelgood

I've had routine blood tests and a couple of visits to the doctor over the last year which I had to pay out of my own pocket. Basically I was told that I had to pay in cash and then claim it back under your medicare card. I explained that I didn't have a medicare card (on 457 visa) and that I wasn't eligible for one.

Is there a way to recoup some of these costs?. I'm not sure if its done at tax time or some other avenue?

Cheers....

darcy07

s.c wrote: »

If that is what you have earned in the last tax year then you would be entiled to get all your tax back ($1355)

ok i received my payg payment summary this morning
gross payments:5884
total tax with held was:1355

so im entitled to the full amount then on top of that can i claim up to 300 dollars?? what will i claim for in an office job (do i have to describe my claims)

the medicare exemption how much is it worth?

can i claim for the medicare exemption now even though i still havent posted (can u email) application for medicare levy exemption cert

sorry for all the questions

Mellor

Feelgood wrote: »

If you use a tax agent you will have to provide the medicare exemption certificate,

No you don't. I've done it via an agent without a certificate.
If some agents insist on it to try get money for an application that's a different thing.

Feelgood wrote: »

I've had routine blood tests and a couple of visits to the doctor over the last year which I had to pay out of my own pocket. Basically I was told that I had to pay in cash and then claim it back under your medicare card. I explained that I didn't have a medicare card (on 457 visa) and that I wasn't eligible for one.

Is there a way to recoup some of these costs?. I'm not sure if its done at tax time or some other avenue?

You aren't entitled to medicare so you aren't covered for the costs. This isn't a tax issue.

darcy07 wrote: »

ok i received my payg payment summary this morning
gross payments:5884
total tax with held was:1355

so im entitled to the full amount then on top of that can i claim up to 300 dollars?? what will i claim for in an office job (do i have to describe my claims)

No of course not.
How could you claim extra on top of what you earned. They don't just give out free money.

Doc

Hey guys I've been on a 457 the last two years but my company hasn't done LAFHA for me can I clam anything back for LAFHA myself? Have had a bit of conflicting information on this.

Also I just recently applied for my sponsored PR visa. Can I clam any of the costs of that back?

hussey

Doc wrote: »

Hey guys I've been on a 457 the last two years but my company hasn't done LAFHA for me can I clam anything back for LAFHA myself? Have had a bit of conflicting information on this.

Also I just recently applied for my sponsored PR visa. Can I clam any of the costs of that back?

LAFHA - no, it's an employer fringe benefit.
PR - don't think so, but I'm not sure. Don't think can be classed as a work expense.

stephenmario

I've everything filled in but when it tries to verify my identity but it keeps telling me "the information you have provided does not match our records", has this happened to anyone. I don't see how the info is wrong they only asked for name, dob, tfn, phone number and email none of which have changed...

hussey

is it your first year? Or did you apply last year?

Last year a number of people had the same issue usually with their first time.

PirateShampoo

Hey guys, I'm on a WHV and it's my second tax year. I've made roughly 60k and payed 18k tax between 3 different companies.

Is it worth me going to a accountant or just do it myself online? Will I get the same back either way?

Also I did 4 months work in Darwin and I heard you qualify for a tax break doing so?

Nedbroy

Me again, thank you hussey for the last reply, finally it makes sense to me. couple more questions- can your super be an allowable deduction as well as the 300 allowable expenses? Wishful thinking?

The etax refund calculator asks how long you've been here or intend to be here for if a part year resident. I take it you only include the number of months you were here during the 11/12 financial year? The intend part threw me off. Also the refund increases the longer you say you were/intend to be here

Edit: found info on last years thread

darcy07

Mellor wrote: »

No you don't. I've done it via an agent without a certificate.
If some agents insist on it to try get money for an application that's a different thing.


You aren't entitled to medicare so you aren't covered for the costs. This isn't a tax issue.



No of course not.
How could you claim extra on top of what you earned. They don't just give out free money.

thanks for the response but have read elsewhere on threads that u can claim back up to 300 dollars in expenses??

Traq

thanks for the response but have read elsewhere on threads that u can claim back up to 300 dollars in expenses??

You can, but the sum total of what you get back will never exceed what you've paid in tax. As Mellor says, they don't just give away free money.

Whipping Boy

Mellor wrote: »

It's not application for exemption, you are exempt regardless. It's a declaration of exemption only needed if they asked. If you earned under the threshold I don't imagine they'll ever ask for proof. So just go ahead.

Great, thanks for that, just sent it on

stephenmario

hussey wrote: »

is it your first year? Or did you apply last year?

Last year a number of people had the same issue usually with their first time.

Yeah its my first year. I assume I just give them a ring to try and get it sorted?

hussey

stephenmario wrote: »

Yeah its my first year. I assume I just give them a ring to try and get it sorted?

maybe - honestly not sure, but you can also print it off and send it in.

DjembaDjemba

hey, im on a WHV, and am filling out my tax refund using the ATO computer program, and at the end of it, it says that I owe the ATO $1450 approx !!!

But when I fill out my tax estimate on taxback.com, it says im entitled to a refund of approx $950! Any ideas whats up with that?

hussey

DjembaDjemba wrote: »

hey, im on a WHV, and am filling out my tax refund using the ATO computer program, and at the end of it, it says that I owe the ATO $1450 approx !!!

But when I fill out my tax estimate on taxback.com, it says im entitled to a refund of approx $950! Any ideas whats up with that?

Taxback.com will say you are a resident for tax purposes. Also make sure you have no money owed for medicare

g5fd6ow0hseima

Just a quick question about the medicare levy:

As I have yet to begin my e-tax application - i'm waiting on my final PAYG cert off an employer - I am wondering what I have to do regarding the medicare levy. Does this medicare levy come out of my taxes paid, or is it something that will be added on to my owed tax as I progress through my e-tax application?

So, should I apply for the exemption prior to starting my application, even though i've only paid roughly $1400 in tax altogether this year, or can I afford to ignore it given the small amount of tax i've paid? Also, I havent availed of any medical care since i've been here.

rightyabe

Was talking to a fella about the tax back and he said he went to a agent last year and he said that when he worked on a farm he needed to use his phone for work (to call the farmer a couple of times a day). He said he used it 70%/30% for business/personal use, in the end the agent used 60%/40% so of the 500$ in receipts for credit he had, the agent put down $300 for phone costs..

Is this possible, and where in the online ATO form would you fill it in? aslo would you need to have receipts, or as I buy my credit online would a bank statement do if I needed it?

Cheers

g5fd6ow0hseima

Just a quick question about the medicare levy, as the whole thing has left me fairly confused:

As I have yet to begin my e-tax application - i'm waiting on my final PAYG cert off an employer - I am wondering what I have to do or not do regarding the medicare part of my application. Does this medicare levy come out of my taxes paid, or is it something that will be added on to my owed tax when this is calculated?

So, should I apply for the exemption prior to starting my application, even though i've only paid roughly $1400 in tax altogether this year, or can I afford to ignore it given the small amount of tax i've paid? Also, I havent availed of any medical care since i've been here.

Im assuming I just ring up the medicare office and they'll post out an exemption form once I tell them i'm on a WHV and havent had any healthcare treatment.