Australian Tax Return

[JuliePaul]

Hi there

 

Was just wondering if anyone can shed any light on how the tax system works in Australia, i've had a look on the ATO website but keep going round in circles!! :wacko:

 

Does your employer take tax off your weekly/monthly pay..? if so, at what rate?

 

Also, in the majority of cases do you end up having to pay more tax to the ATO at the end of the year or are you more likely to get a refund..? (obviously each individual will be different).

 

Thanx in advance

 

Juls x x

[Guest Silol]

If you are employed your employer deducts tax on your behalf using the tax tables. If you're self-employed, then you (or your accountant) does your tax return after 30 June and you hopefully have saved up to pay your tax bill then.

2010/2011 rates of tax are:

0% first $6000

15% on earnings between $6000 and $37000

30% on earnings between $37000 and $80000

37% on earnings between $80000 and $180000

45% on anything over this.

There is also a medicare levy. I can't remember the exact details, but it's something like 1.5% surcharge if you don't have private cover that includes hospital cover, added to the mandatory 1% medicare levy. You don't pay anything if your earnings are low (cannot remember the figure). Someone correct me on that if I've explained it wrong.

Hope this helps somewhat.

[Guest Boosonic]

Everyone employed in Oz has to file a tax return at the end of the tax year (tax year runs from 01/07 to 30/06), you can do this online yourself or get an accountant to do it (fees are not much for an Accountant approx $150).

 

If your have an employer they deduct tax each week/fornight from your regular pay at the rates previously posted (a bit like PAYE). There is a medical levy but you can claim back on any medical treatment over $1900. You can also claim on other expences such as anything you have bought for work - uniform/equipment etc, school book fees, laptops/internet used for school etc and alot of other stuff too.

 

I can only speak from personal experience but myself and most people I know end up with a nice little tex refund after the tax return has been filed.

[Guest Mark X]

Looks like people have given you some good information about the basics already and the system is set up so the majority of people overpay, rather than underpay (companies/sole traders might be different).

 

Alot of people don't realise the things they are entitled to claim which means they end up not getting as much of 'their money' back as they should. Some of the deductions available are occupation specific and others are available to everyone.

 

Its worth spending a bit of time now working out what personal tax allowances and deductions you might be entitled to so you make sure you keep all relevant receipts and records (for example a car logbook or laundry diary)

 

Think about things like uniforms & protective clothing, laundry, home office, overtime meals, travel, work expenses, self-study expenses and many more.

 

Hope that helps,

cheers Mark

[JuliePaul]

Hi guys

 

Thanx very much for all your replies - starting to make a bit of sense now!!

 

Hubby is a Carpenter - would he be able to claim tax back on a Ute/Van he bought for commuting to work etc and his tools even if he is employed by a company...??

 

I'm thinking we might just keep receipts for everything we buy in the first tax year, take it to an Accountant and get them to sort it for us the first time around so we have some idea of what we are doing!! We have a house over here in the UK still which we are renting out when we move, but wont be liable for tax in the UK because the rent doesnt equal our personal allowances! :wacko:

[moirclan]

there is soft ware you can buy to help you with your tax and claims

you can claim 20% of the cost of any out of pocket medical expenses after the first $ 2000 you have spent your self ,eg after all pharmastical / prescriptions cough medicines ,cold medicines, bandades ,vhiro , physio , dental glasses [ the list goes on]

you generally depreciate your ute over so many years and claim x amount back every year plus insurance , servicing petrol etc

trade member ships trade magazines

office , [ small room in your home ] phone , internet etc

[Guest Mark X]

Hi guys

 

Thanx very much for all your replies - starting to make a bit of sense now!!

 

Hubby is a Carpenter - would he be able to claim tax back on a Ute/Van he bought for commuting to work etc and his tools even if he is employed by a company...??

 

I'm thinking we might just keep receipts for everything we buy in the first tax year, take it to an Accountant and get them to sort it for us the first time around so we have some idea of what we are doing!! We have a house over here in the UK still which we are renting out when we move, but wont be liable for tax in the UK because the rent doesnt equal our personal allowances! :wacko:

 

He would be able to claim back the cost of traveling to work if he needs to bring equipment/tools from home and also the cost of traveling between jobs (there are a number of ways to do this depending on yearly travel, e.g. cents per kilometre, % of costs etc).

 

If he buys tools that are 100% for work use, if he uses them for personal and work use, you can only claim the % used for work.

 

He will also be able claim back for protective clothing used for work and even things like a sunhat, sunglasses and suncream.

 

If he does a course related to his job this can be claimed.

 

Laundry and work clothing repair costs can also be claimed.

 

If he uses a home office for preparing quotes or doing research he can claim back home office use and internet/phone costs.

 

For some of these things (laundry, car use, home office etc) you'd need to keep a diary/logbook for part of the year to demonsrate how you calculated your yearly figures.

 

I'm not allowed to post a link here but there are some occupation profiles on our website, there's one for tradies.

 

Hope that helps

 

Cheers, Mark.

[JuliePaul]

He would be able to claim back the cost of traveling to work if he needs to bring equipment/tools from home and also the cost of traveling between jobs (there are a number of ways to do this depending on yearly travel, e.g. cents per kilometre, % of costs etc).

 

If he buys tools that are 100% for work use, if he uses them for personal and work use, you can only claim the % used for work.

 

He will also be able claim back for protective clothing used for work and even things like a sunhat, sunglasses and suncream.

 

If he does a course related to his job this can be claimed.

 

Laundry and work clothing repair costs can also be claimed.

 

If he uses a home office for preparing quotes or doing research he can claim back home office use and internet/phone costs.

 

For some of these things (laundry, car use, home office etc) you'd need to keep a diary/logbook for part of the year to demonsrate how you calculated your yearly figures.

 

I'm not allowed to post a link here but there are some occupation profiles on our website, there's one for tradies.

 

Hope that helps

 

Cheers, Mark.

 

Cheers for that Mark, I'll check out your website! :biggrin:

 

Does your company actually complete Tax Returns on your clients behalf..?