When employed in Australia you need to obtain a TFN (Tax File Number) to avoid large amounts of tax being deducted from your wages.
You can apply for one online before you leave home as it takes up to 28 days for a TFN to be issued.
Taxes are paid to the Australian Taxation office (ATO) through a Pay As You Go (PAYG) system where any tax that you have to pay on your wages is paid to the ATO by your employer when they pay you your take home pay.
At the end of Financial year you must file a tax return to the ATO, this can be done on line however it is suggested that you fill out one by hand before you put the information in online. If you do not file a tax return you may end up paying an unnecessary tax bill or being fined for non-compliance.
It is very common to use a tax agent as there are many different aspect of taxation that can be wordy and confusing. Using a tax agent is inexpensive and they can help you get the maximum return of your tax.
|
Taxable income |
Tax on this income |
|
$0 – $6,000 |
Nil |
|
$6,001 – $35,000 |
15c for each $1 over $6,000 |
|
$35,001 – $80,000 |
$4,350 plus 30c for each $1 over $35,000 |
|
$80,001 – $180,000 |
$17,850 plus 38c for each $1 over $80,000 |
|
$180,001 and over |
$55,850 plus 45c for each $1 over $180,000 |
Medicare is a Government Agency that assists in the administration of the health system providing rebates for most medical expenses that you may incur.
You pay a Medicare Levy of 1.5% of your gross wages which is added to your PAYG tax that you pay.
Visit the Australian Tax Office for more information - http://www.ato.gov.au
