Aussie Income taxation-how does it work?

[ausHWC]

Hi Folks,

 

Trying to understand how Oz income tax works. Is it like here in the UK?, that it will be taken out automatically from you monthly payslip? or you have to pay it annually lump sum at the end of the tax year?

 

- Does Oz government work your tax out and require your company employer to deduct it from you wages as accordingly?

- Or is it a case that every person in Aus has an accountant to do their tax return forms? how much are accountants for this purpose?

- Do superannuations get taken off automatically too off your wage slip? what if you are only temporary and return to UK after 2 years do we get back this super payment sum?

- What other deductions are likely to be taken of your income? is it just income tax and superannuation?

 

I know I can read in detail all about this on the Oz Gov website, but what I'm really looking for is top line answers from those in this forum with people's true experience to say how it really is. Would really appreciate any info or advice, thanks in advance.

[Marisawright]

- Does Oz government work your tax out and require your company employer to deduct it from you wages as accordingly?

Employers have standard tax tables and they deduct a standard amount of tax based on the $ value of your pay. However, you still have to submit a tax return at the end of the year because (a) you may have other deductions you can claim and (b) the banks don't deduct tax at source, so you have to declare that.

- Or is it a case that every person in Aus has an accountant to do their tax return forms? how much are accountants for this purpose?

Most Australians do use a tax agent - not because they really need to, it's just traditional. A tax agent for a simple return will cost you about $90, but for a simple return I wouldn't even bother - just lodge direct with the tax office online. When I had more complicated tax affairs, I did use an accountant (not an agent) and it cost me about $500 a year (which is tax deductible).

- Do superannuations get taken off automatically too off your wage slip?

Super is usually on top of your quoted salary, not deducted from it (unless you're on a package). And it is paid automatically by your employer.

- What other deductions are likely to be taken of your income? is it just income tax and superannuation?

There's also the Medicare levy.

[fish.01]

[h=2]About departing Australia superannuation payment[/h]If you are a temporary resident working in Australia, your employer has to makesuper guarantee contributions for you if you're eligible.

You can claim super benefits you accumulated while working in Australia if all of the following apply:

 

 

• you visited on a temporary visa (excluding visa subclasses 405 and 410)
  
• your visa has ceased to be in effect
  
• you have left Australia.
  

 

Your claim is generally for a 'departing Australia superannuation payment' (DASP).

Your super fund will be requested to transfer your super money to us if you haven't claimed it from the fund after a minimum period of six months since you left Australia and your visa ceased to be in effect. We will hold your unclaimed super for you until you claim it.

 

Source: https://www.ato.gov.au/Individuals/Super/In-detail/Temporary-residents/Super-information-for-temporary-residents-departing-Australia/

[fish.01]

1 in 3 Australians do their own tax return online using e-Tax and they are expecting that to increase this year as they now provide a new streamlined service for people with simple tax returns named MyTax.

 

MyTax is available on computers, tablets and smartphones.

 

MyTax: https://www.ato.gov.au/Individuals/Lodging-your-tax-return/Lodge-online/MyTax/

 

Tool to work out whether you should use e-Tax or the simpler MyTax: https://www.ato.gov.au/Calculators-and-tools/Whats-right-for-me---myTax-or-e-tax-/

[Ken]

When I had more complicated tax affairs, I did use an accountant (not an agent) and it cost me about $500 a year (which is tax deductible).

 

That would have been before they tightened the rules. Now accountants (like anyone else) can't charge a fee to do a tax return unless they are registered tax agents.

[Echidna66]

That would have been before they tightened the rules. Now accountants (like anyone else) can't charge a fee to do a tax return unless they are registered tax agents.

 

This is how it works..They bleed you dry so they can bomb and destroy imaginary terrorists, that their bosses the USA have created, and they can keep all Australians SAFE from terrorists that are not really there...and they can keep the population safe by destroying our freedoms, by telling us we are under threat..Quite simple and transparent really..

[Echidna66]

Tightened the rules...well bugger their rules..they are lucky Australian taxpayers are so compliant..

[Marisawright]

That would have been before they tightened the rules. Now accountants (like anyone else) can't charge a fee to do a tax return unless they are registered tax agents.

 

I should have been more specific. What I meant was a qualified accountant rather than just one of those tax agents from the likes of H&R Block, whose only qualification is a short course. He is also a registered tax agent.