Change Non-Resident Tax File Number To Resident Tax File Number.

[JetBlast]

Hello,

Sorry if this is in the wrong forum. It seemed to match the best.

Anyway, I have an Australian Tax File Number from when I was on my working holiday visa. I am now a 489 holder and intend to go to Australia in the next few months. I will be a resident for taxation purposes. What do I need to do to change the status of this existing TFN please? I have been on the Australian Tax Office website and I am just going around in circles and not actually finding the information I need. I know I am not there yet but I want everything I need ready so I am prepared.

Any advise would be great.

Thanks

[NickyNook]

You don't have to do anything. 

Everyone uses the same TFN they were given on their WHV when they came back permanently. Never, ever, in nearly 20 years of reading these forums have I heard that anyone had to change the 'status' of their TFN in advance.  

 

[JetBlast]

Hello,

I know the number doesn't change but the document I have from 2011 refers to it as been a non-resident FTN. From what I understand the tax is different compared to what residents pay. Surely I have to inform the tax office some how?

Thanks

[NickyNook]

On your annual tax return it asks you if you're a Resident for Tax Purposes.

It's your answer to that question that determines the correct level of tax due.  

 

[JetBlast]

I see. 

Would I not have tax deducted from my pay please?

[NickyNook]

Yes. Of course.

You tell your employer your tax status and they deduct the tax accordingly throughout the tax year.

At the end of the year you declare everything on your tax return. The ATO will check that the correct amount of tax has been paid throughout the year (based on the answers you give in your tax return) and will either bill you for any shortfall or refund any overpayment.

There's nothing magic associated with your TFN. People can change their tax residency status from year to year (even applies to citizens) and there's no way they need to inform the ATO in advance each time their status changes.

 

[JetBlast]

Thanks.

I was just curious if I was going to be charged the correct tax throughout the year. Didn't want a big bill at the end of the year. But going of what you said I will be fine.

Thanks again.

[rammygirl]

If you have a savings account in Australia tell the bank when you become resident and they will stop taking the 10% withholding tax from any interest. Anything overpaid can be claimed back anyway. 

[Ken]

On ‎17‎/‎01‎/‎2019 at 06:39, JetBlast said:

I see. 

Would I not have tax deducted from my pay please?

When you take up employment you complete a TFN Declaration form. On that you tick the appropriate box to say you are an Australian resident. Your employer withholds tax based on what you tell them on this form. The tax file number itself doesn't provide any information to the employer as to how much tax to withhold. There is no Australian equivalent of the tax code notification that HMRC send to employers.

[JetBlast]

Thanks Ken. Much appreciated!

[Joebloggs]

As Ken says you tick the box on the declaration,  the Employer then just ticks or unticks the resident box in the payroll software and bobs your uncle.

 

if you use https://www.paycalculator.com.au/

and tick the Non-Resident box you can see the difference, basically the payroll software does the same thing.