Tax Help Australia

Hi Everyone,

My name is Mimi and I am an Aussie resident (born and bred) and spent most of my life living in Alice Springs (the Red Centre – closest town to The Rock/Uluru/Ayers Rock). Whilst living and working in Alice Springs, I have met many amazing backpackers, expats (because of the ‘Space Base’ near Alice) and general travellers coming through to see the Red Centre. I've moved away to Townsville now but would still love to connect with travellers and expats in some way. I have seen many tax related questions in the posts and would like to step forward to assist (as best I can) with some of your queries.

I have a Bachelor of Business (major in Accounting), I am a Chartered Accountant (in Australia), Registered Tax Agent, Certified Xero Adviser and hold a Public Practice Certificate. My expertise lies in individual and small business income tax returns as well as cloud accounting.

Cheers,

Mimi

http://www.mybe.net.au

Welcome on board Mimi thank you for offering to help our members with tax advice, I'm sure this will prove very beneficial for them.

Welcome Mimi.

If I see any tax related posts from members, I'll send them your way!

Hello. I am wondering if you can help me.

My accountant did my tax refund. And she gave the wrong details and it's gone into my super!!! Please help me can I get it back?

Hello. I am wondering if you can help me.

 

My accountant did my tax refund. And she gave the wrong details and it's gone into my super!!! Please help me can I get it back?

Mimi will probably be tucked up in bed now but I'm sure she will reply as soon as she sees this.

Thank you. Basically all my tax refund has ended up in my super. Is there anyway I can get it back?

Good Afternoon Rosemeg - I'm really sorry to hear of your situation! Can you let me know some further details - for example, how this may have happened and who your superannuation fund is?

When a tax refund occurs, the tax payer such as yourself supplies bank details for the bank deposit of refunds (directly from the ATO unless otherwise organised). Were incorrect details supplied at this point without knowing?

If it is a genuine mistake, you will need to directly contact your superannuation fund to seek the return process - if you are able to provide some further details to them related to your refund etc, I am certain that they will reluctantly return the money to you - please keep in mind that this can sometimes take a few weeks!

Thank you so much for your reply. My super is with commonwealth and in the rush I gave the wrong account number Iv been worrying and crying all weekend as I might not be able to get it back. I was due a refund of 4000 but when I log into my banking it says I have 3400 in my super. This is also a worry as I was due a refund of 4000, I rang commonwealth and they said they can't do anything and to ring ATO which I am waiting until Monday morning to do.

Hi Rosemeg, just following up to see how you went with your ATO calls!

Hiya.

They em just said they will try and retract it. No promises tho

Hi Mimi, I wonder if you can advise me as I'm a bit worried about my situation regarding tax. I've just arrived in Canberra to start a new job at one of the universities here. My contract actually started back in October, when I came out for two weeks, but I was then put on unpaid leave so I could have time to take care of some stuff back in the UK. When I saw my salary paid into my Westpac account for those two weeks, I realised it was much lower than I expected and after several emails back and forth with payroll and HR, I realised that I was being charged the top rate of tax because I hadn't supplied a TFN. I've applied for this now that I'm in Canberra so the TFN should arrive some time this month. Looking at other sites online, I get the impression that because I missed the 28-day window to supply a TFN to my employer, they will continue to tax me at around 50% and that I can't apply for a refund until the end of the financial year, i.e. June. Have I understood that right? Or is it the case that if I give my employer my TFN later this month, that the tax rate will change immediately? I'm a bit confused and worried, as I'm looking at various rental properties this week but suddenly not sure I can actually afford to live here, if my salary has effectively been halved...! Any help would be greatly appreciated.

Hi Mimi, I wonder if you can advise me as I'm a bit worried about my situation regarding tax. I've just arrived in Canberra to start a new job at one of the universities here. My contract actually started back in October, when I came out for two weeks, but I was then put on unpaid leave so I could have time to take care of some stuff back in the UK. When I saw my salary paid into my Westpac account for those two weeks, I realised it was much lower than I expected and after several emails back and forth with payroll and HR, I realised that I was being charged the top rate of tax because I hadn't supplied a TFN. I've applied for this now that I'm in Canberra so the TFN should arrive some time this month. Looking at other sites online, I get the impression that because I missed the 28-day window to supply a TFN to my employer, they will continue to tax me at around 50% and that I can't apply for a refund until the end of the financial year, i.e. June. Have I understood that right? Or is it the case that if I give my employer my TFN later this month, that the tax rate will change immediately? I'm a bit confused and worried, as I'm looking at various rental properties this week but suddenly not sure I can actually afford to live here, if my salary has effectively been halved...! Any help would be greatly appreciated.

Hi LTMH2 - I'm not sure I should answer as this is Mimi's thread but I just wanted to let you know that Australian payroll is worked out differently from the UK. Each pay (whether it's weekly, fortnightly or monthly) is taxed separately in Australia and not on a cumulative basis. Consequently as soon as they have your TFN they'll use it for each pay period from then on. Hence each will be taxed "correctly" based on that so you won't be paying so much tax on each. What they can't do (or shouldn't - some payroll departments do bend the rules) is refund the tax from past periods as they've already had to pay that tax over to the ATO.

The reason I put "correctly" in quotes is because it rarely is correct, the Australian systems generally overestimates so most people get a tax refund at the end of the year and those who haven't worked the whole year certainly will (although you don't get a full tax free allowance - it's pro-rated when you've been out of the country - the other tax bands are not and anyone who doesn't earn the same amount each tax period for a full year will have paid too much tax by the year end).

Thanks Ken, that's really helpful! That's the answer I was hoping for. I mean, I can survive if I pay high tax for a month or two and then it goes back to normal (ish) once I've submitted the TFN. I was worried after reading something on another site that I might be locked into the high rate of tax for the rest of the financial year. Great to hear that's not the case. Probably just jetlag making me misunderstand the intricacies of the tax system...

Thanks for response, Ken! Have been without internet from moving house!

Hope the move is going well LTMH2!

Hi Mimi,

I have been offered a permanent position in Australia and am considering to migrate as I have also obtained my PR visa. However I am worried on the alimony I have to pay and the disposable income I would have left after that.

While living in the Netherlands, I got divorced and in August 2014, the court ruled I have to pay for maintenance of my ex-spouse for a duration of 12 years. The monthly amount is 3100 Euro (currently 4600 AUD equivalent).

One of the considerations that determine the amount of alimony to be paid, is the Dutch tax laws. In the Netherlands, the payee gets tax relief equal to the maintenance amount paid, whilst the recipient has to pay income tax on the amount received.

To my understanding under Australian tax laws, this is different. When both payee and recipient are Australian tax residents, the payee does not get tax relief on the maintenance paid to the former spouse, and the recipient does not have to pay income tax on the amount received.

As I would become Australian tax resident, I would not have tax relief whilst at the same time the recipient still has to pay taxes in the Netherlands.

Effectively this implies double taxation on the alimony. At the same time, whilst potentially earning a decent salary of 150,000 AUD per year, this would hardly leave any disposable income to support myself.

I have checked the double-taxation treaty between Australia and the Netherlands, but unlike treaties between Australia and e.g. UK, there is no provision regarding the double taxation of maintenance payments to former spouses (unlike similar arrangements between Australia and e.g. UK).

I would therefore like to understand if I would have a fair chance to a apply for a ATO personal tax ruling to request for tax relief on the alimony I have to pay. Or are there other possibilities.

Good morning Frits,

Wow - that would be a big move (and a great opportunity for change/experience!).

In regards to your circumstances - I do not have expertise in this area of taxation. Perhaps Ken is able to assist in this matter?

I am also unsure as to the jurisdiction of the matter if/when you become an Australia Citizen - i.e. the legal arrangements relating to spousal maintenance when one party resides abroad. Can the agreement already established be varied when you become a resident of another country?

I will continue to research this matter and respond with any assistance I can. Sorry I cannot be of more help in this matter at the moment.

Hi Mimi

I hope you can assist me with some information.

I hold shares within the ISA (tax free) in the UK and am moving to Oz in 2 months.

Would you know whether capital gains tax would be payable when I sell the shares after becoming Oz resident?

Can I still enjoy taxfree status of the shares as a Oz resident?

Thanks

Nigel

Hi Nigel,

In regards to your shares within the ISA: upon becoming an Australian Resident you will be required to disclose and report all income world-wide, and tax payable will be governed by the Australian Taxation Office. If you become a resident of Australia and sell your shares in the UK, a capital gain or loss will be made, and as a result, tax payable on any gains (or credits carried forward). I hope this information is of assistance to you

Cheers,

Mimi

Thanks Mimi

Looks like there is no escape :-)

Hi Nigel.

What is your visa status in Australia?

Best regards.

Hi

Still in the UK, arriving in Perth on Visa class 190.

Do you know of any allowances which I would be able to take advantage of should I dispose of the shares within the ISA wrapper after arriving in oz?

Thanks

Nigel

Hi Nigel.

 

What is your visa status in Australia?

 

Best regards.

Hi

 

Still in the UK, arriving in Perth on Visa class 190.

 

Do you know of any allowances which I would be able to take advantage of should I dispose of the shares within the ISA wrapper after arriving in oz?

 

Thanks

 

Nigel

Hi Nigel.

Once you are tax resident in Australia your CGT position will be computed with reference to the value of the shares on the date you commence tax residency (translate the GBP value into AUDs using the GBP-AUD exchange rate at the same date).

Gains predating your arrival are not taxable in Australia.

Hold the shares for more than 12 months following your arrival and any capital gain arising will be reduced by 50% (the "CGT discount").

Hope this helps.

Nice one Alan

Thank you

I am still on the look out for a further 50%:smile:

Hi Nigel.

 

Once you are tax resident in Australia your CGT position will be computed with reference to the value of the shares on the date you commence tax residency (translate the GBP value into AUDs using the GBP-AUD exchange rate at the same date).

 

Gains predating your arrival are not taxable in Australia.

 

Hold the shares for more than 12 months following your arrival and any capital gain arising will be reduced by 50% (the "CGT discount").

 

Hope this helps.

Nice one Alan

 

Thank you

I am still on the look out for a further 50%:smile:

That's easy. As with any other CGT asset sell at a loss. In fact it's even better than that because the loss will reduce your total tax bill. Of course most people prefer to make a positive return on their investments but you can't have everything (the tax man won't let you).

Hi Mimi,

I hope you are well.

I would like some advice on both super and tax. I am leaving Australia due to my 457 visa coming to an end. I want to get a tax rebate before the end of year. Is this possible and if so how long does this take. And also for my super, how long does this take to hit my account after leaving the country.

I would appreciate it if you have any info on this..

Regards

j