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Guest qualmberger

Is There A Tax Free Allowance Like in the UK?

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Guest qualmberger

Is there a tax free allowance on your salary like there is in the UK where you have a tax free allowance of around £6k in a tax year?

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Guest webster

If you are talking about income tax rates, then it depends on whether you are an Australian resident for tax purposes. There is a $6000 tax free threshold for australian residents. See australian tax offce link for income tax rates for australians and non residents. http://www.ato.gov.au/content/12333.htm

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This is what I'm looking at.

 

I'm currently looking at a job in Australia so I guess working over there I would be a non resident.

 

What I would like to know if someone can help, apart from the 1.5% medicare charge and the tax, are there any other hidden reductions I need to look at?

 

Like here in Britain we have NI. Is there anything else like that in Western Australia or is it just the tax please?


If it happens then it happens. If it doesn't well it doesn't. Amor Fati !!

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Am I right in thinking that under a sponsored visa, as a non resident working in Australia, up to $80,000 dollars you pay $10,730 tax only?

 

Is that just for one year or every year until you become a resident?


If it happens then it happens. If it doesn't well it doesn't. Amor Fati !!

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Am I right in thinking that under a sponsored visa, as a non resident working in Australia, up to $80,000 dollars you pay $10,730 tax only?

 

Is that just for one year or every year until you become a resident?

 

Nope! Read again - you would be disadvantaged tax-wise if NOT considered a resident for tax purposes - you'd pay $10,730 on the first $37k (instead of $4,650 as a resident), PLUS 15% on income between 37k and 80k. A non-resident doesn't get the tax free threshold and pays a higher tax rate on the first 37k.

 

A resident for tax purposes is in simple terms someone who intends to stay more than 6 months.


She'll be right!

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Nope! Read again - you would be disadvantaged tax-wise if NOT considered a resident for tax purposes - you'd pay $10,730 on the first $37k (instead of $4,650 as a resident), PLUS 15% on income between 37k and 80k. A non-resident doesn't get the tax free threshold and pays a higher tax rate on the first 37k.

 

A resident for tax purposes is in simple terms someone who intends to stay more than 6 months.

 

I should have gone to Specsavers. Sorry, Yes so on up to $80,000 earned it is $23460 in tax. I take it there isn't a hidden NI charge like what we have here in the UK? Is there anything else that would come out of my wages that I need to know about?

 

The 1.5% Medicare charge says not charged for Foreign residents but what if you managed to get work tht was going to be there for years. I take it it all changes again.


If it happens then it happens. If it doesn't well it doesn't. Amor Fati !!

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To understand your tax situation, you must first work out whether you are an Australian resident for tax purposes. Australian residents are generally taxed on their worldwide income and non-residents are generally taxed only on their Australian-sourced income.

The residency tests we use to work out your residency status for tax purposes are not the same as those used by other Australian agencies for other purposes such as immigration.

Generally, you are an Australian resident for tax purposes if any of the following applies:

 

  • you have always lived in Australia
  • you moved to Australia and live here permanently
  • you have been in Australia continuously for six months or more, and for most of the time you have been
    • in the same job, and
    • living in the same place

     

    [*]you have been in Australia for more than half of the financial year, unless

     

    • your usual home is overseas, and
    • you do not intend to live in Australia.

     

     

 


If it happens then it happens. If it doesn't well it doesn't. Amor Fati !!

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There are all sorts of allowances and tax rebates available depending on your personal circumstances. Go to the Australian Tax Office website

 

http://www.ato.gov.au/

 

and search for tax deductions and tax offsets.

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