Tax Returns, Tax Status (Resident or Non Resident)
The Australian Tax Year runs from 01 July to 30 June. If you earn income in Australia then you are required to report this to the Australian Tax Office (ATO) by completing a Tax Return.
A Tax Return is the procedure followed to declare your earnings and tax paid in any given Australian Tax Year and needs to be lodged by 31 October.
Each company you have been employed by during the tax year will provide you with a PAYG Payment Summary by 14th of July. This will provide details of your gross earnings, allowances, salary sacrifice superannuation contributions and tax deducted from your salary which is paid to the ATO.
Ways in which you can submit a tax return include:
- Engage with an Accountant to complete and lodge this on your behalf
- Lodge electronically via the ATO Website www.ato.gov.au
- Complete a Tax Pack and lodge electronically at any Australia Post Office
Once you have declared your earnings to the ATO an assessment will be produced which will provide details as to whether further taxes are due to be paid or if you are entitled to receive a refund on excess taxes contributed throughout the year.
If you are unsure if you are a resident or non resident for tax purposes, visit the ATO website link www.ato.gov.au to complete an on line questionnaire which will help you determine your status.
Applying for a Tax File Number (TFN)
In order to earn income in Australia you must first apply for a Tax File Number (TFN), you do this through an application with the ATO; the TFN will be generated and provided to you within 28 days of submitting the application.
You then must provide your TFN to each employer you have during the tax year, this will ensure that when PAYG Tax is deducted from your wages and paid to the ATO it is applied against your account.
An employer is required to deduct 48.5% tax if you have not provided your TFN to them after 28 days of commencing employment.
To apply for a TFN please visit the ATO website www.ato.gov.au