Taxback if you leave at christmas

colman1212

Potentially thinking of moving home at christmas.
Would this mean you would be entitled to quite a lot of tax back as you have only worked 6 months of that financial year?
Been here for 3 years now...

aido79

Why do people seem to get so confused about tax? The figures below are from the Australian Tax Office website.

Tax rates 2013-14
The following rates for 2013-14 apply from 1 July 2013.
Taxable income Tax on this income
0 – $18,200
Nil
$18,201 – $37,000
19c for each $1 over $18,200
$37,001 – $80,000
$3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000
$17,547 plus 37c for each $1 over $80,000
$180,001 and over
$54,547 plus 45c for each $1 over $180,000

If you earn less than $18,200 for the year then you don't pay any tax. If you earn $37,000 for the year then you pay $3,572. If you earn the $37,000 in one day and don't work for the rest of the financial year then you pay $3,572 in tax. If you earn the $37,000 and have to work 365 days a year for it then you pay $3,572 in tax. It doesn't matter if you are the chief engineer on a rio tinto site or if you are a student working in hungry jack's on the weekends the same tax rates applies to everyone(the engineer may get more tax benefits due to clever accounting though)

s.c

aido79 wrote: »

If you earn the $37,000 in one day and don't work for the rest of the financial year then you pay $3,572 in tax.

Only true if you continue to be a resident for tax purposes for the whole year. If you earn $37,000 on the 1st of July and then leave the country and are not a resident for tax purposes for the rest of the year, then you will pay a hell of a lot of tax on this.

Hasmunch

Are you considered a resident for tax purposes if you only are in the country for 6 months of the tax year?

s.c

Not automatically. There are conditions to meet.

Legend100

not entirely accurate

You are entitled to a threshold amount of $13,464 plus ($4,736 divided by 12, multiplied by the number of months you were an Australian resident for tax purposes) in the year of departure

so in the OP's case, that would be a tax free threshold of $15,832 if leaving in December

aido79

I was just trying to show how the tax is worked out for the year. Obviously if you only work one day then you may not be able to be classed as a resident for tax purposes. In the case of the OP he has been here for 3 years and he intends to stay until Xmas then he should be able to satisfy the requirements for resident for tax purposes.

s.c

aido79 wrote: »

I was just trying to show how the tax is worked out for the year. Obviously if you only work one day then you may not be able to be classed as a resident for tax purposes. In the case of the OP he has been here for 3 years and he intends to stay until Xmas then he should be able to satisfy the requirements for resident for tax purposes.

Yes but not for the entire year so his tax free allowance would be calculated as Legend100 showed above.