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Hi all,

i wonder if anyone can help? I've heard off a few people that after your first year here, once you lodge a tax return that you're usually entitled to a refund? Is this correct?

thanks in advance,

Jay and Paula

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It depends how much Tax you have paid, always worthwhile filling in a tax return. We got a large tax refund last year as we had only been here a part year, since the March. Unfortunately we won't get as much this year :-(

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You HAVE to do a tax return each year here. You can be fined if you don't. I have never not had a refund on mine.


Has two beautiful Aussie little girls :-)

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You can complete your tax return online if you like - we did this last year and it's not too bad.

 

There's a lot more that you can tax deduct here as an employed person than in the UK. If you're in any doubt, get in touch with an accountant who will be able to advise. In general terms, if it's specifically to do with your work, you may be able to tax deduct it. So for example, I work in IT and often work from home. A percentage of my home Internet connection and my home laptop is therefore tax deductible. As I don't drive specifically for work, my car is not tax deductible.

 

Also, as mentioned above, if you haven't worked the full tax year then you are likely to get some tax back from your ordinary income tax over-payment.


 

Live and Work Australia - All you need to move Down Under

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We've only ever had one refund for $22 whoop di doo! My OH's friend almost always ends up owing too!

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We've only ever had one refund for $22 whoop di doo! My OH's friend almost always ends up owing too!

Wow, the first tax year I was here they gave me back more than I had paid! The least I have had in five years has been about $550. The most over $1000.

 

Op, if you do decide to use an accountant you can claim the cost back on your next years tax return.


Has two beautiful Aussie little girls :-)

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Even with an accountant end up paying thousands of bucks in tax each year. It all depends on individual circumstances and what can be claimed.

Hence negative gearing for one thing is popular to bring tax rate down.

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Hi all,

i wonder if anyone can help? I've heard off a few people that after your first year here, once you lodge a tax return that you're usually entitled to a refund? Is this correct?

thanks in advance,

Jay and Paula

 

I don't know why people think this. If your tax is being deducted correctly during the year there is no reason why you should get a tax refund. I have never had a refund, only had a bill because of overseas income. Expecting the same this year.

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I don't know why people think this. If your tax is being deducted correctly during the year there is no reason why you should get a tax refund. I have never had a refund, only had a bill because of overseas income. Expecting the same this year.

 

Companies tend to deduct tax as though you are working for the full year, but if you are only working for part of the year you might fall in to a different tax bracket for the yearly earnings and therefore pay too much tax. This is what is happening to me. I've been in Australia since July last year but have only been working since November. My earnings for the tax year will be about $34k but I'm being taxed as though I'm going to be earning $54k. Having worked out how much tax I owe on $34k earnings for the year and how much I will actually pay in tax I'm pretty sure I should get a rebate of a couple of thousand dollars.


Any fool can criticize, condemn, and complain but it takes character and self control to be understanding and forgiving.

Dale Carnegie – 1888-1955, Author and Lecturer

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We landed 1st July so bang on the start of the tax year so this may be why. Just grateful not to have a bill quite frankly!

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Assuming I stay in work for the full year next year I don't expect to get a tax refund next year, and I wouldn't be surprised if I owe tax for interest paid on savings or something.


Any fool can criticize, condemn, and complain but it takes character and self control to be understanding and forgiving.

Dale Carnegie – 1888-1955, Author and Lecturer

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I don't know why people think this. If your tax is being deducted correctly during the year there is no reason why you should get a tax refund. I have never had a refund, only had a bill because of overseas income. Expecting the same this year.

 

Same here....I usually get a bill for several thousand dollars due to overseas income.

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I am off to a 'Understanding the Aussie Tax System' meeting tomorrow, some local accountancy firm is having a get together.

 

From what I have researched so far and hopefully I will get confirmed tomorrow night, I may be able to claim the following...

 

$300 for clothing (dry cleaning etc) I think this is the most you can put through without receipts

 

I can claim tax back on stuff I have bought/used for work, I work in IT and work from home 3 - 4 days a week. I should be able to claim money back on a percentage of my broadband, electric and heating bill, office furniture and equipment (hard drives etc)

 

I landed in September so missed out on 2 months of my tax free allowance.

 

Some travel you can claim back, in my case it would be when I went straight to a client instead of the office.

 

Here is the one I really hope is true - I came over here on my own and went back for my wife and kids three months later. I have seen comments made online that if you are send money back to your spouse/family who are listed on your Visa and they have not entered the country yet, you may be able to claim some of that back. I hope this is the case as I wired nearly $10,000 back over a 3 month period.

 

Anyway I will find out what stuff is bull and what stuff is true and post the results in the next 36 hours or so

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I don't know why people think this. If your tax is being deducted correctly during the year there is no reason why you should get a tax refund. I have never had a refund, only had a bill because of overseas income. Expecting the same this year.

 

Because it is often true in the first year! We arrived in March and so DH got thousands back of the tax he had paid as the same was taken out each month as if he was here for the full year and not taking account of his tax free allowance.

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You're always better off getting a professional to do your return, at least for the first year as there are many questons that aren't relevent and ones that are hidden within them.

 

You can claim for laundry, but only if you are washing uniforms - regular clothes don't count (it's a set amount, about $180 from memory); if you live in a regional area you can claim for that; there are 3 different ways of claiming for car use depending on how many km you travel, there are various rebates for families that you may or may not be entitled to, depending on your circumstances. You can claim a portion of computer use, telephone use etc but not the full portion of business use is deductable.

 

An income tax professional will see you through all this, and as they generally get a percentage of the rebate (not a huge amount) they will ferret out everything that they possibly can.

 

I attempted to do it myself once, ended up with a bill for $1300, took it to the tax people and they wrangled a rebate out of stuff I had missed

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I have never used a tax accountant, but everyone I have spoken to who has have said its a flat fee. Most people I know (I work in a dodgy area) use dodgy accountants to claim back things they are not entitled to claim. Of course, every now and again the accountants get audited and they end up having to pay back money.


Has two beautiful Aussie little girls :-)

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I don't know why people think this. If your tax is being deducted correctly during the year there is no reason why you should get a tax refund. I have never had a refund, only had a bill because of overseas income. Expecting the same this year.

 

Simply not true even if you are full time employed and paid via the Aussie equivalent of the UK PAYE system, there are various things you can claim for (the same as back in the UK).

 

I was PAYE in the UK but because I was in a higher tax bracket and received business expenses I had to fill in a self assessment every year, my typical rebate each year was between £1500 - £2000

 

This is my first Aussie tax return so I am going to use an accountant for this one, as there are going to be some one off claims I can only submit this year. Once those have been filtered out I should have an idea of what I can normally claim year on year so probably will file my own return from then on (unless my circumstances change dramatically)

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Guest GeorgeD

I received a higher refund in my first year than in my second...due to not being here for the full tax year. I had teh same job, the same income, and the same level of deductions, just for less of a year...and got more of a refund.

 

I can claim business expenses for use of my car. Going to customer meetings is a large part of my job, so I regularly have to drive to meetings. It's my own car and I receive a Motor Vehicle Allowance which is untaxed....I have to claim for my business use of my car so as not to incur a whopping tax bill. I have one or two other small things I can claim for (small part of internet use at home, stationery, etc)

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If you're a regular employee, you should receive a small refund at the end of the year, so its worth doing a tax return to get the refund back.

The tax deducted from your pay is usually a bit extra so you get a tax refund of a few hundred dollars maybe at the end of the year.

 

I have heard that the ATO will be moving to abolish tax returns for simple tax payers over the next few years. They have most of the information anyway and can work it out for you. They may allow a blanket amount of a few hundred dollars for deductions and then you only fill out a return if you need more deductions ( or something like that).

 

You can imagine they would save millions if the could automate the process for the majority of simple wage earners.


I want it all, and I want it now.

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We got a small refund in the first year, and a whopping great big bill every year since

It just depends when you arrive , at what stage in the tax year, as to whether you will get anything back or not

If you are self employed, the ATO, will get you to pay future tax in instalments quarterly ,after you lodge your first tax return.

Usually the instalments amount to far higher than the tax which will be due, and then you will get any over paid tax back.That really galls me, that they do that, as its very hard to make the payments some quarters.

Always best to use an accountant, theres so much that they can claim back for you, that you just would not know about otherwise

Edited by Sapphire

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We are expecting a chunk back for my OH this year as he's only worked a few months of the year but been taxed as if he was employed all year, so expecting around $4,500 back for him, plus he's also been self funding studying and has worked from home a bit, so we should get some back for that as well.

 

For me I work out I will owe them about $900 - got a share bonus paid in cash but it wasn't taxed at the right rate.

 

First year we were here we got back $4,000 each, but this was because we ticked the 'non-resident' box on our tax forms due to being on WHV's - when in fact we were seen as residents for the whole year.

 

We did it ourselves last year online, but this year we are going down the route of having a tax accountant file for us - we could have claimed more than we did last year (working from home etc) which we didn't, so want to get it right this year.

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Be very careful as well, about claiming back allowances for working from home

As an example, If you deem part of your home to be an office,and claim for that area, you can then be liable for CGT on the sale of your property for the proportion of the home, you have claimed against on your tax

Again always best to speak to a proffessional,they should be able to make sure you do not get yourself in that situation, when they fill out your return.

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Guest GeorgeD

We used an accountant and will probably continue to do so. It focusses the mind, he asks some probing questions...I remember that I bought a case for customer meetings which I can claim for, etc, and all in it took no more than 1 hour,. It got it over and done with. It would've taken me ages and I woould probably have done it in installments, so for use using an accountant was really useful. Plus you can claim for their services in next year's tax return...

 

When I say accountant, i don't meen a tax advisor who pops up in a shopping centre this time of year, I mean a proper company with a proper office you go to. Mine cost $160 (with car allowance stuff) and my wife's was $110. Well worth it for us, owrth cosidering for others.

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If you use a tax accountant please make sure you use one who is familiar with the commencement of tax residency in Australia, overseas sources of income (if you have any), and the impact of your visa status on how you are taxed - particularly if you are in Australia as the holder of a temporary residency visa.

 

Good luck to all at tax time!

 

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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