Once you arrive to Australia we are sure you will be amazed by its beautiful landscape, cute animals and lovely people. Once you have settled and are considering to start work you will need to know a few things about tax. Here is what you need to get started:

  1. Before you start to work you will need a Tax File number commonly referred to as TFN. You can apply for TFN at Australian Taxation Office (ATO) website.
  2. As in most of the world the financial year starts from 1st of July and ends 30th of June.
  3. If you have worked then you need to lodge a TAX return
  4. If you haven’t worked then you need to inform ATO via Non Lodgement advice.
  5. Be sure to fill in the Tax Declaration Form correctly. This form will be provided to you by your employer when you start to work.

How Much Do I Pay

Now the next question that you may have in mind is how much tax do you pay? Don’t worry we have it covered as well. The below table shows the rates for those who are Australian Residents for tax purposes. This table has been taken from the ATO’s website

Resident tax rates 2018–19
Taxable income Tax on this income
0 – $18,200 Nil
$18,201 – $37,000 19c for each $1 over $18,200
$37,001 – $90,000 $3,572 plus 32.5c for each $1 over $37,000
$90,001 – $180,000 $20,797 plus 37c for each $1 over $90,000
$180,001 and over $54,097 plus 45c for each $1 over $180,000

Please note that this table does not include the 2% Medicare levy. Medicare gives Australian residents access to health care. This is partly funded by the proceeds of the Medicare Levy.

If you are a foreign resident for tax purposes then the following apply

Foreign resident tax rates 2018–19
Taxable income Tax on this income
0 – $90,000 32.5c for each $1
$90,001 – $180,000 $29,250 plus 37c for each $1 over $90,000
$180,001 and over $62,550 plus 45c for each $1 over $180,000

To work out your residency status for tax purposes simply click here.

If you require any further details or require assistance with Tax returns then simply contact us. You can reach us by calling +61 2 9534 8744, via our contact us page or facebook page.