Australian tax thread 2012

s.c

Slidey wrote: »

Any truth to what I was told that you can't claim any tax back until you have been in the country 6 months

None whatsoever

tezzy_v2

Mellor wrote: »

That's a mistake, its supposed to say Northern Ireland. When you follow the link to the actual form it is correct.

https://www.medicareaustralia.gov.au/public/files/ma_3169_application_for_certification_for_medicare_levy_exemption_purposes_011005.pdf

People from the republic aren't entitled to medicare, therefore we are exempt. Nothing has changed this year in that regard, I've gotten exemption on both 417 and 457 visas.

Excellent, my missus is a big 4 tax consultant here in Perth and she's bet me $500 that im not entitled to the exemption :pac:

NoelAPM

Slidey wrote: »

Any truth to what I was told that you can't claim any tax back until you have been in the country 6 months

you can but dont expect to get much as your status will be non resident for tax purposes.

hussey

NoelAPM wrote: »

you can but dont expect to get much as your status will be non resident for tax purposes.

Not quite true, you can be a resident for tax purposes if you intend on staying 6 months, if you read the start of the thread, there are some detailed links to determine if a resident for tax purposes

Brian201888

Can anyone give me some information on tax back if I've claimed LAFHA. Worked for around 5 months on LAFHA so obviously paid minimal tax during that time. Happy enough to have got my fair share during the contract so thats ok. Will that now effect my tax back on my jobs where I was working paying normal tax. Would my gross for the year including the gross while claiming LAFHA effect my entitlement to claim back on the remainder of the years taxes?

Barrythe chopper

Hey guys I applied for my tax back with an agency, I got a letter from the tax office saying they wanted proof of my residency and copy of my passport and to make sure my pay summaries were legit, no problem there. Am I going to be penalized as a result or is my claim going to change? The woman said they pick someone at random to check up on and I just got chosen. She also said she thinks it came up because the tax company I went with put I was a resident for tax purposes ive been in Australia for 11 months now.

Doc

Barrythe chopper wrote: »

Hey guys I applied for my tax back with an agency, I got a letter from the tax office saying they wanted proof of my residency and copy of my passport and to make sure my pay summaries were legit, no problem there. Am I going to be penalized as a result or is my claim going to change? The woman said they pick someone at random to check up on and I just got chosen. She also said she thinks it came up because the tax company I went with put I was a resident for tax purposes ive been in Australia for 11 months now.

This will tell you if you are a resident for tax purposes or not

sudzs

Just a quick and probably stupid (!) question!

Me and mr. sudzs left Australia a few months ago and I'm trying to claim his tax back for him. Do I just do a tax return using the online etax software? Do I need to do anythng else?

Any advice appreciated!




...by the way, are there any fatal mistakes I might make doing a tax return that could mean we wouldn't get back what we're due?

Grant Stevens

Started working in Oz in October 2011... I still work for the same company and intend to stay here permanently (I'm currently on 457)

When using the ATO calculator to see how much tax back I'll get it asks the following:

Are you:

1) Resident for tax purposes

2) part-year resident

3) Full-year resident

Because I only started in late September am I a part-year resident for tax purposes?
My tax withheld by employer amounted to $12,400 and the calculator states that I should have paid $9,330..this leaves me with a return of $3,070...but some people are telling me that I'm entitled to about 80% after the first year out here...where are people pulling this info from?? Am I missing something here?

I have applied for my Medicare exemption cert so I'm waiting on this to arrive before lodging the return.

jackbhoy

Grant Stevens wrote: »

Started working in Oz in October 2011... I still work for the same company and intend to stay here permanently (I'm currently on 457)

When using the ATO calculator to see how much tax back I'll get it asks the following:

Are you:

1) Resident for tax purposes

2) part-year resident

3) Full-year resident

Because I only started in late September am I a part-year resident for tax purposes?
My tax withheld by employer amounted to $12,400 and the calculator states that I should have paid $9,330..this leaves me with a return of $3,070...but some people are telling me that I'm entitled to about 80% after the first year out here...where are people pulling this info from?? Am I missing something here?

I have applied for my Medicare exemption cert so I'm waiting on this to arrive before lodging the return.

You are a resident for tax purposes.

The people telling you that you get 80% back are pulling that info from a place beginning with a and ending in rse!

markymark21

Barrythe chopper wrote: »

Hey guys I applied for my tax back with an agency, I got a letter from the tax office saying they wanted proof of my residency and copy of my passport and to make sure my pay summaries were legit, no problem there. Am I going to be penalized as a result or is my claim going to change? The woman said they pick someone at random to check up on and I just got chosen. She also said she thinks it came up because the tax company I went with put I was a resident for tax purposes ive been in Australia for 11 months now.

No you shouldn't get penalised. In fact I think the agency you used should have forwarded all those details when they did your tax return. The company I used asked for loads of things such as every page which has a stamp in my passport photocopied, visa confirmation letter e-mail, secondary forms of ID etc..

Also, Its a good thing they put down your a resident for tax purposes.. Means you will probably get a bigger refund

Plug

Im on a WHV and Im paying about 30% + a week. I have my TFN and that. Also I think I put down tax as non resident if that makes a difference? Will I recieve most of it back of just samll bit and will my tas rate per week come down to a lower percent?

NoelAPM

Your tax rate is only determined when you do your return. Assuming you are now a resident for tax purposes, your rate will be calculated at 14% I think.

It was said already. I'll let you read up on it.

hollyday

Hi all, did any of you get an email once you lodged your return online just to say that it went through or anything? It's only about 2 weeks since I did mine but I've had no correspondence from the ATO and I'm afraid that maybe it didn't go through properly as I never took down the password code at the end. Another password came up and when I tried to put this through it said that I had already put it through. Could it have gone through without the password though? :confused fairly annoying sytem tbh

peterg2806

Hi everyone.
I've been in Australia for 11 months now on a WHV, had two jobs both lasting less than 6 months (although this is because of a WHV limitation to six months employment with one employer rather than by choice). Attempting my tax return and very confused about the Resident/Non-resident thing.

On my TFN declarations for both jobs I ticked non-resident and have been on the ~29% tax rate.

A few different places (including on this forum) have suggested that tax agents (I seem to remember taxback.com being mentioned) pretty much automatically put foreigners in my position down as a Resident for Tax Purposes. Is this them basically taking a risk on your behalf, or is there some logic to it?

As far as being a Resident goes I don't really know if I qualify as one or not. It seems like a grey area which relies on intent as much as fact (and logic) - you can be in Australia for a day and be a resident, but can also be in Australia for 10 months and still be a non-resident. And a WHV holder can be classed as a Resident, despite being legally unable to meet two of the key requirements of being a Resident - 6 months or more in one job, and usual home not overseas. Is it the greyness of Resident/Non-resident that makes tax agents put WHV holders down as Residents?

Thanks. Sorry for the half-rant. The Australian tax system seems like a minefield of contradictions to me.

Traq

Essentially, on the ATO website it states that you are generally considered an Australian resident for tax purposes if you meet any of the following criteria:

• have always lived in Australia or you have come to Australia to live permanently
• you have been in Australia continuously for six months or more, and for most of that time you worked in the one job and lived at the same place
• have been in Australia for more than six months of the income year (unless your usual home is overseas and you do not intend to live in Australia - for example, you are a working holiday maker)
• you go overseas temporarily and you do not set up a permanent home in another country, or
• are an overseas student enrolled in a course of study for more than six months duration.

In your case I would say you are considered a resident for tax purposes as you have been in Australia continuously for six months or more and for most of that time you worked in the one job.

hussey

peterg2806 wrote: »

Hi everyone.
I've been in Australia for 11 months now on a WHV, had two jobs both lasting less than 6 months (although this is because of a WHV limitation to six months employment with one employer rather than by choice). Attempting my tax return and very confused about the Resident/Non-resident thing.

On my TFN declarations for both jobs I ticked non-resident and have been on the ~29% tax rate.

You are a resident for tax purposes. You stayed in one area and job for 6 months = resident.

A few different places (including on this forum) have suggested that tax agents (I seem to remember taxback.com being mentioned) pretty much automatically put foreigners in my position down as a Resident for Tax Purposes. Is this them basically taking a risk on your behalf, or is there some logic to it?

The risk is on your behalf, a few agencies get a % cut, so it is in their best interest to get as much $$ as possible. Most workers are Resident for tax purposes.

As far as being a Resident goes I don't really know if I qualify as one or not. It seems like a grey area which relies on intent as much as fact (and logic) - you can be in Australia for a day and be a resident, but can also be in Australia for 10 months and still be a non-resident. And a WHV holder can be classed as a Resident, despite being legally unable to meet two of the key requirements of being a Resident - 6 months or more in one job, and usual home not overseas. Is it the greyness of Resident/Non-resident that makes tax agents put WHV holders down as Residents?

You do qualify, and please let's call it a 'resident for tax purposes' as this is different than a resident.

With the intent thing, might be easier to give an example. You sign a 6 month contract and you intent to stay in the job for 6months. It is unfair to pay 29% tax straight out, so you can have a choice to pay tax with a tax free allowance or pay a full tax rate.

If you want to use a tax agent, do so with a credited tax number and charges a flat fee do not use a % based agent. If you are confused or worried, ask them about it, no one wants to screw up tax, the ATO are not some bad guy out to get the little man, they are usually fair and give people chances if they believe it was a genuine mistake.

STIG83

Got mine back recently, using some of it to book a trip to the East Coast

Plug

Are they any sites that will charge a flat rate to do this? I find E-tax complicated. I dont mind paying 50 - 60 dollers to do this crap for me. I know they will need my TFN but what else should I need? Whats this thing I hear about getting $400 back for medical exemption?

hussey

Plug wrote: »

Are they any sites that will charge a flat rate to do this? I find E-tax complicated. I dont mind paying 50 - 60 dollers to do this crap for me. I know they will need my TFN but what else should I need?

Go to a high street tax accountant, loads of them around.
You'll need TFN, passport (for medicare exemption)
your cert from your employer(s) about how much you were paid and tax paid
any reciepts to back up what you are claiming as expense

Whats this thing I hear about getting $400 back for medical exemption?

Medicare exemption is covered pretty throughly in this thread - have a reread.

You should check out the example I put up at the start of the thread.
If you are a straight forward tax return then you can skip almost all the sections.

Plug

hussey wrote: »

Go to a high street tax accountant, loads of them around.
You'll need TFN, passport (for medicare exemption)
your cert from your employer(s) about how much you were paid and tax paid
any reciepts to back up what you are claiming as expense

Medicare exemption is covered pretty throughly in this thread - have a reread.

You should check out the example I put up at the start of the thread.
If you are a straight forward tax return then you can skip almost all the sections.

I suppose I will have to check with my employer to see if I'm a non resident for tax purposes or resident for tax purposes. Im fairly sure we selected the first one and also im getting taxed very high so it must be that. If I go through the tax agent and apply for the medical exemption will I get away with just my passport(your post above) or do I still need the certificate?

Another question, is it possible to change to resident for tax purposes if Im a non resident for tax purposes?

Sorry for the stupid questions but I am stupid when it comes to this type of thing. Thanks:)

hussey

Plug wrote: »

I suppose I will have to check with my employer to see if I'm a non resident for tax purposes or resident for tax purposes. Im fairly sure we selected the first one and also im getting taxed very high so it must be that. If I go through the tax agent and apply for the medical exemption will I get away with just my passport(your post above) or do I still need the certificate?

Of course you'll need some document saying what you earnt

Another question, is it possible to change to resident for tax purposes if Im a non resident for tax purposes?

Of course.

Sorry for the stupid questions but I am stupid when it comes to this type of thing. Thanks:)

as I said maybe give the thread a re-read all these questions have been answered

rightyabe

Any truth that if your apply online via e-tax that they will deffo ring you? I know some people get calls from the tax office but does a online application 100% guarentee a phone call?

s.c

rightyabe wrote: »

Any truth that if your apply online via e-tax that they will deffo ring you? I know some people get calls from the tax office but does a online application 100% guarentee a phone call?

No

rightyabe

Great to have a forum like this to put to bed stupid pub talk.

It annoys me how much crap people talk with no facts.

jackbhoy

rightyabe wrote: »

Great to have a forum like this to put to bed stupid pub talk.

It annoys me how much crap people talk with no facts.

Yeah, I can't wait to go home at Christmas and hear how Billy down the road is making 200k a year in mines having left school at 12 with no qualifications etc etc......me hole!

Plug

hussey wrote: »

Of course you'll need some document saying what you earnt

I can use the pay slip so.

How do I go about changing my status to resident for tax purposes? Do I have to go through government tax services or my employer? thanks

hussey

Plug wrote: »

I can use the pay slip so.

How do I go about changing my status to resident for tax purposes? Do I have to go through government tax services or my employer? thanks

Contact your employer/payroll, I just had to fill out that 'start job form' again (i'm sure it had an official title)

mandrake04

hussey wrote: »

Contact your employer/payroll, I just had to fill out that 'start job form' again (i'm sure it had an official title)

Think it's the witholding declaration.

http://www.ato.gov.au/content/downloads/ind17332nat3093.pdf

Bansai

Has anyone gone with taxback for their refund this year?

As Im back in Ireland since June I thought it would be easier (for me :rolleyes:) if I sent my info to taxback, biggest mistake!

I submitted my information to taxback on the 4th of July and it took them 8 days to submit it to the Australian Tax Office. (Not the 24 hours as they say on the website)

Anyway at first I was told I would receive the refund within 12 business days which would have been the 27th July. On the 28th of July I got an email saying they were expecting my refund on the 1st of August. Then on the 31st of July they said my refund had been delayed by a further 2 weeks.

This morning I got an email from them saying the ATO had stopped my return to review that all the details are correct and that there would be some delay in processing the refund.

Its turned into a complete joke now as its been 6 weeks since I originally sent them my information. Any time I try and contact them for some explanation for the delays they just blame the tax office.

Im thinking they have f***ed up somewhere on my submission and they aren't saying anything. Im gonna contact the tax office myself to try get some explanation.

I wish I'd just submitted the thing myself. Has anyone else suffered a delay in their return like me?