Learn about Australian Tax
The Australian tax system works pretty similar to New Zealand. The Australian Tax Office/Department is the equivalent of the IRD in New Zealand. Your employer will pay tax to the Australian Tax Department/Office on your behalf. If you are self employed you will need to file your own tax returns, so you will need to get an Australian tax accountant to help you file everything correctly.
A Tax File Number (TFN) is the Australian equivalent of the New Zealand IRD number. You do not need to have a TFN to work and pay Australian tax, however you will be charged at a higher tax rate. The Australian tax year runs from the 1st of July through to the 30th of June.
You should apply for a TFN number as soon as you arrive in Australia. You are not able to apply from New Zealand: https://iar.ato.gov.au/iarweb/default.aspx?pid=4&sid=1&outcome=1
Australian Tax Rates
Please find below a table containing the Australian individual income tax rates. The following rates for 2011-12 apply from 1 July 2011. You can find more about Australian tax rates on the Australian Tax Office/Department website - http://www.ato.gov.au/.
| Taxable income | Tax on this income |
|---|
| $0 – $6,000 |
Nil |
| $6,001 – $37,000 |
15c for each $1 over $6,000 |
| $37,001 – $80,000 |
$4,650 plus 30c for each $1 over $37,000 |
| $80,001 – $180,000 |
$17,550 plus 37c for each $1 over $80,000 |
| $180,001 and over |
$54,550 plus 45c for each $1 over $180,000 |
Comprehensive Australian Tax Calculator
The below links will take you to the Australian tax calculator on the Australian Tax Department/Office website. The calculator will help you estimate your tax refund or debt for the 2008-09 to 2010-11 income years.
It will estimate your tax payable and will also calculate:
- Medicare levy
- Medicare levy surcharge
- Higher Education Loan Program (HELP) repayment
- Student Financial Supplement Scheme (SFSS) repayment, and
- any tax offsets that may apply.
It will take these, along with other tax credits, into account in estimating your tax refund or debt.
Start Comprehensive tax calculator 2011
Start Comprehensive tax calculator 2010
Start Comprehensive tax calculator 2009
Inform the IRD that you are Moving to Australia
New Zealand tax residence questionnaire IR886
The IR886 form tells the IRD you are leaving, or have left New Zealand so they can tell you your tax residence status and if you have any further New Zealand tax obligations. It also includes the IR597 form you can use to elect someone in New Zealand to act on your behalf.
Also inform the IRD of your new address in Australia when you have one. It is easiest to do this online. Click here to register for the IRD's online service, which means you can easily update your address while overseas and continue to be informed about things like student loan repayments or other tax obligations you may have.
If you have any questions, please fill out the below form and we will get back to you asap.
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