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.
On this page you will find the following information:
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. You can start working without TFN and inform your employer that you have applied one, but they may still use the higher tax rate until your TFN comes through. Good news is that you may be able to claim the overpaid tax, you can find more info about tax refunds below.
A TFN will get you in line with the PAYG (pay as you go) earn scheme, which means that your Australian employer will withhold and report tax under your TFN. Same as NZ.
The Australian tax year runs from the 1st of July through to the 30th of June.
You should apply for a Tax File Number Aus as soon as you arrive in Australia. You are not able to apply from New Zealand.
You can apply for a tax file number online if you meet these three conditions:
You can apply through the Australia Taxation Office (ATO) by completing their online form on the ATO website, print the summary and then book an interview at a participating Australia Post retail outlet. You will need to take your printed summary and proof of identity documents to the interview. Or you can save yourself an interview and complete a TFN application for free through Taxback.com.
Taxback.com have recently started offering their TFN application for free, saving you AU$30 and the time it would take you to book and attend an interview at the Post Office.
Taxback.com are licensed international tax agents who have been helping individuals prepare and file their tax returns for over 20 years.
Taxback.com can prepare and submit an application for your TFN completely free and get your TFN in timely manner!
I have been through the process and it is very straight forward:
We get asked how long to get an Australian tax file number regularly. You should receive your TFN within 28-30 days. The ATO will send your TFN to the Australian address you use on your application.
However, Taxback.com usually receive TFN’s in approximately 2-3 weeks time, so it could be faster to use them.
Please note you can start working without a TFN, but you might get taxed a higher amount until it comes through.
If you already have a TFN and don’t remember the number, you can find it online in ATO online services via your myGov account: https://my.gov.au/.
If you don’t have a myGov account, you can usually find your TFN on:
If you use a registered tax agent/accountant, you can ask them for your TFN. If you still can’t find your TFN after checking these options, phone the ATO.
New Zealand citizens are treated as residents for tax purposes once they complete a stay of six consecutive months in Australia (183 days).
Please find below a table containing the Australian individual income tax rates.
|Taxable income||Tax on this income|
|0 – $18,200||Nil|
|$18,201 – $45,000||19c for each $1 over $18,200|
|$45,001 – $120,000||$5,092 plus 32.5 cents for each $1 over $45,000|
|$120,001 – $180,000||$29,467 plus 37 cents for each $1 over $120,000|
|$180,001 and over||$51,667 plus 45 cents for each $1 over $180,000|
The above rates do not include the Medicare levy of 2%. You can work out your Medicare levy using the calculator on the ATO website.
If you do not stay in Australia for six months (183 days) you will be treated as foreign resident for tax purposes. This means that you are not allowed to use the tax-free threshold in your return (earn under $18,200) and you will be charged the starting tax rate of 32.5%. You would be eligible to claim a tax refund only if your Australian employer withholds more than 32.5% in tax and you will get the difference, meaning only the overpaid amount of tax. TaxBack.com can help you with this.
|Taxable income||Tax on this income|
|0 – $120,000||32.5 cents for each $1|
|$120,001 – $180,000||$39,000 plus 37 cents for each $1 over $120,000|
|$180,001 and over||$61,200 plus 45 cents for each $1 over $180,000|
Once you have your TFN you will pay the same tax rate as a Australian resident or citizen.
The standards the ATO use to determine your tax residency are not the same as those used by the Department of Immigration and Border Protection – for example, you could be an Australian resident for tax purposes even if you’re not an Australian citizen or permanent resident.
To understand your tax situation you first need to work out if you are an Australian or foreign resident for tax purposes. You can do that here using the ATO’s ‘Are you a resident?‘ tool.
|If you’ve ever worked Down Under, you probably paid tax and are due an Australian tax refund.|
This calculator is FREE to use and will give you an instant Australian tax refund estimation. The average Australian tax refund with taxback.com is AU$2,600 so it’s well worth checking out the online tax calculator now.
Use taxback’s Australian tax refund estimator now and you are one step closer to getting your Oz tax refund!
Australian tax calculator facts
Taxback.com provides personal & corporate tax solutions. They will help you claim tax refunds and file tax returns. Get your tax back today!
The Australian financial year runs from 1 July until 30 June each year. Individuals have until the 31 October to lodge tax returns on their own. If you use a tax agent, you can secure an extended deadline.
New Zealand citizens are not required to lodge a tax return if you have not commenced paid employment or stayed in Australia for less than six months and the only source of Australian income was bank interest, dividends or royalties (from which non-resident withholding tax has been correctly withheld).
You must lodge a tax return if any of the following apply:
The main reason people submit a tax return is to claim overpaid tax and get a tax refund.
If your finances are straightforward (for example, your only income is from one employer and you have few or no deductions to claim), try doing it yourself online via myTax, which is similar to MyIR with the IRD. Find here instruction to help you complete your tax return using myTax – https://www.ato.gov.au/Individuals/myTax/.
More info, read my post Filing your Australia Tax Return.
Lodging a tax return can be daunting if you are not a professional. To ensure maximum legal refund and compliance with the Australian Authorities you should use an Australian Tax Agent/Accountant. Thus you can guarantee yourself a simple and easy process that will involve as many tax deductions as possible and larger tax refund amount in the end.
You can find accountants in your area by searching online. Make sure you check the tax and BAS agent register before you go ahead with any service.
We recommend Taxback.com services as they can ensure full compliance with the Australian Tax office and provide 24/7 support! Taxback.com are licensed and chartered tax agents with more than 20 years’ experience on the Australian market and more than 300,000 tax returns lodged!
The average Australian tax refund that a Taxback.com customer receives is $2,600!
You can apply for a tax refund even if you have already left Australia before the end of the tax year and they can assist with an early tax refund assessment.
Why use Taxback.com:
Simply register online and their experienced team of tax experts will handle all of the tax paperwork, ensure you are taking advantage of every relief you’re entitled to and will transfer your refund straight to your bank account anywhere in the world.
Taxback.com charge per tax return is 9% of refund + handling fee (minimum fee of $99 + handling fee). Document Retrieval Fee is AU$40 + handling fee services, per document. These are very standard charges. By hiring a capable and more importantly, reliable tax accountant, you’ll be able to see a huge difference in retained funds for personal use.
Top service comes at a certain price, but will make sure that you get everything done hassle-free and get your maximum refund in fastest ways possible!
Find out more information about Taxback.com and their services at www.taxback.com.
More info, read my post Filing your Australia Tax Return.
If you are planning on starting your own business and work as a sole trader or contractor, sub-contractor, you need to apply for Australian Business Number or ABN. Same as you would apply for a New Zealand Business Number (NZBN) in NZ.
ABN is a unique 11 digit number that identifies your business or organisation to the government and community.
To apply for such you must have obtained a Tax File Number first.
You can apply for ABN by registering directly with the Australian Government – https://www.abr.gov.au/business-super-funds-charities/applying-abn.
Taxback.com can also help with this matter to ensure a trouble-free application. Check out more information on their webpage – ABN application. Service fee applicable.
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.
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