Applying for your Tax File Number in Australia(TFN)
The "Tax File Number in Australia" (TFN) is the equivalent to the National Insurance (NI) number in the UK.
You need your TFN if you have earnings from employment or investment in Australia and will be a tax resident in Australia.
Apply for your Tax File Number in Australia TFN as soon as you move to Perth, you don't have to wait until you have a job.
It takes 2-4 weeks to obtain your TFN Number which, you will need before you can start work. You will also need a TFN Number to apply for child benefit.
You can get your Australian Tax File Number online or if you prefer from a Tax or Centrelink Office.
In Australia Income Tax is payable on money you earn during the course of employment (your employee will deduct income tax directly from your wages each pay period)and any money earned on investments (this includes foreign investments).
HOW MUCH AUSTRALIAN INCOME TAX WILL YOU HAVE TO PAY
In Australia you pay tax according to your income. The higher your income the higher the income tax you pay.
| Tax Rate Scales 2009- 2010 | |
|---|---|
| Tax Table Range | Tax Rate % |
| 0 - 6,000 | 0 % |
| 6,001 - 35,000 | 15 % |
| 35,001 - 80,000 | 30 % |
| 80,001 - 180,000 | 38 % |
| 180,001 + | 45 % |
MEDICARE LEVI
Included with you taxes the Medicare Levi is your contribution to the health care system. The Medicare Levi is based on your income and is 1.5%. If your joint earnings are over $100,000 then you pay an additional 1%. If you have private health care and have joint earnings over $100,000 then you are not required to pay the additional 1% contribution to Medicare.
TAX ON INVESTMENTS AND FOREIGN INCOME
There are lots of little things you can claim back for when you submit your tax return which, include things such as:-
- Work clothes(if special clothing required)
- Mobile phone (if required for work, it does not cover personal calls)
- If you have Private Health Care you can claim a 30% rebate from the Federal Governemnt if you are entitled to Medicare.
The Federal Government 30% Rebate may be claimed back on your annual income tax return if you have paid the full, upfront cost. Your health fund will give you a statement at the end of the financial year to help you complete your tax return
INCOME TAX RETURNS
You are required to complete an Income tax return every year. The tax year runs from 1 July – 30 June. Referred to as a Self Assessment Tax Pack the return should be completed by the 31st October each year.
The Self Assessment must be completed by everyone who is an Australian resident for tax purposes and who has paid tax during the tax year.
To help you calculate how much tax you are liable to pay the Australian Tax Office (ATO) provide an online calculator.
Because everyone in Australia who has an income has to complete a tax return you will find that you can get it done for you at very little cost.
