Do you get all your tax back?
Mar 3rd 2009, 10:21 am
#1
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Do you get all your tax back?
I've been told that you get back all the tax you paid in your first year in Australia. Does anyone know if this is true? I will contact the tax office tomorrow, but thought i'd ask on here because someone always knows the answer. Thanks.
Mar 3rd 2009, 10:38 am
#2
Proudly Deplorable
Joined: May 2003
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Re: Do you get all your tax back?
No.
Mar 3rd 2009, 11:33 am
#3
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Joined: Apr 2004
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Re: Do you get all your tax back?
It may appear you get a lot back if you've not been here a year when you do the tax return but that's only because they calculate the yearly amount of tax and then take off 12 lots (if monthly). You then get back what you've overpaid but you certainly don't get it all back.
That was written by a 'normal person' not a finance person
That was written by a 'normal person' not a finance person
Mar 3rd 2009, 11:42 am
#4
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Joined: Apr 2008
Location: Shropshire, UK
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Re: Do you get all your tax back?
It may appear you get a lot back if you've not been here a year when you do the tax return but that's only because they calculate the yearly amount of tax and then take off 12 lots (if monthly). You then get back what you've overpaid but you certainly don't get it all back.
That was written by a 'normal person' not a finance person
That was written by a 'normal person' not a finance person
Mar 3rd 2009, 11:50 am
#5
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Posts: n/a
Re: Do you get all your tax back?
Employers deduct tax in a different way to the UK system, and this often gives rise to a tax refund at the end of the year.
The reason for this is that the Australian Tax Office has adopted a simpler system of allowing 1/12 of the annual threshold for every month, (or 1/52 if paid weekly).
This means that if someone does not work every week of the year, they temporarily miss out on that weeks threshold allowance, until the end of the year.
The UK system works on a cumulative basis, and calculates tax pretty accurately every week/month.
An example of the effect of this for someone who only works here for 6 months would be:
Based on a $120,000 annual salary, that would be$10,000 per month...
Gross Tax Calculated at:
First $500 tax free
Next $2,333 at 15% = $350
Next $3,833 at 30% = $1,150
Next $3,334 at 40% = $1,333
Total tax = $2,833 per month or $16,998 for that period of 6 months.
However, at the end of the year, the correct figures for a gross wage of $60,000 would be:
$3,000 tax free
$14,000 at 15% = $2,100
$46,000 at 30% = $13,800
Total Tax Due $15,900
A Tax Refund of the difference, $1,098 would be paid after the tax return is submitted.
This figure would often be higher, after other tax allowances are also taken into effect...
The reason for this is that the Australian Tax Office has adopted a simpler system of allowing 1/12 of the annual threshold for every month, (or 1/52 if paid weekly).
This means that if someone does not work every week of the year, they temporarily miss out on that weeks threshold allowance, until the end of the year.
The UK system works on a cumulative basis, and calculates tax pretty accurately every week/month.
An example of the effect of this for someone who only works here for 6 months would be:
Based on a $120,000 annual salary, that would be$10,000 per month...
Gross Tax Calculated at:
First $500 tax free
Next $2,333 at 15% = $350
Next $3,833 at 30% = $1,150
Next $3,334 at 40% = $1,333
Total tax = $2,833 per month or $16,998 for that period of 6 months.
However, at the end of the year, the correct figures for a gross wage of $60,000 would be:
$3,000 tax free
$14,000 at 15% = $2,100
$46,000 at 30% = $13,800
Total Tax Due $15,900
A Tax Refund of the difference, $1,098 would be paid after the tax return is submitted.
This figure would often be higher, after other tax allowances are also taken into effect...
Mar 4th 2009, 10:54 am
#6
Forum Regular
Thread Starter
Joined: Apr 2008
Location: Shropshire, UK
Posts: 86
Re: Do you get all your tax back?
Employers deduct tax in a different way to the UK system, and this often gives rise to a tax refund at the end of the year.
The reason for this is that the Australian Tax Office has adopted a simpler system of allowing 1/12 of the annual threshold for every month, (or 1/52 if paid weekly).
This means that if someone does not work every week of the year, they temporarily miss out on that weeks threshold allowance, until the end of the year.
The UK system works on a cumulative basis, and calculates tax pretty accurately every week/month.
An example of the effect of this for someone who only works here for 6 months would be:
Based on a $120,000 annual salary, that would be$10,000 per month...
Gross Tax Calculated at:
First $500 tax free
Next $2,333 at 15% = $350
Next $3,833 at 30% = $1,150
Next $3,334 at 40% = $1,333
Total tax = $2,833 per month or $16,998 for that period of 6 months.
However, at the end of the year, the correct figures for a gross wage of $60,000 would be:
$3,000 tax free
$14,000 at 15% = $2,100
$46,000 at 30% = $13,800
Total Tax Due $15,900
A Tax Refund of the difference, $1,098 would be paid after the tax return is submitted.
This figure would often be higher, after other tax allowances are also taken into effect...
The reason for this is that the Australian Tax Office has adopted a simpler system of allowing 1/12 of the annual threshold for every month, (or 1/52 if paid weekly).
This means that if someone does not work every week of the year, they temporarily miss out on that weeks threshold allowance, until the end of the year.
The UK system works on a cumulative basis, and calculates tax pretty accurately every week/month.
An example of the effect of this for someone who only works here for 6 months would be:
Based on a $120,000 annual salary, that would be$10,000 per month...
Gross Tax Calculated at:
First $500 tax free
Next $2,333 at 15% = $350
Next $3,833 at 30% = $1,150
Next $3,334 at 40% = $1,333
Total tax = $2,833 per month or $16,998 for that period of 6 months.
However, at the end of the year, the correct figures for a gross wage of $60,000 would be:
$3,000 tax free
$14,000 at 15% = $2,100
$46,000 at 30% = $13,800
Total Tax Due $15,900
A Tax Refund of the difference, $1,098 would be paid after the tax return is submitted.
This figure would often be higher, after other tax allowances are also taken into effect...
Mar 4th 2009, 10:55 am
#7
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Thread Starter
Joined: Apr 2008
Location: Shropshire, UK
Posts: 86
Re: Do you get all your tax back?
And i've also just noticed that i haven't changed my details yet!
Mar 4th 2009, 5:50 pm
#8
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Re: Do you get all your tax back?
Am I right in thinking that every single person working has to submit a tax return? Not just self-employed people?
Mar 4th 2009, 5:55 pm
#9
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Mar 4th 2009, 6:34 pm
#10
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Re: Do you get all your tax back?
Thanks. I thought so. I guess I will definitely carry on my direct sales stuff in Oz then if I'm having to help my husband with a tax return anyway, might as well do one myself too.
Mar 5th 2009, 8:51 am
#12
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Re: Do you get all your tax back?
Mar 5th 2009, 11:18 am
#13
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Location: Lower Chittering, Perth
Posts: 4,646
Re: Do you get all your tax back?
Employers deduct tax in a different way to the UK system, and this often gives rise to a tax refund at the end of the year.
The reason for this is that the Australian Tax Office has adopted a simpler system of allowing 1/12 of the annual threshold for every month, (or 1/52 if paid weekly).
This means that if someone does not work every week of the year, they temporarily miss out on that weeks threshold allowance, until the end of the year.
The UK system works on a cumulative basis, and calculates tax pretty accurately every week/month.
An example of the effect of this for someone who only works here for 6 months would be:
Based on a $120,000 annual salary, that would be$10,000 per month...
Gross Tax Calculated at:
First $500 tax free
Next $2,333 at 15% = $350
Next $3,833 at 30% = $1,150
Next $3,334 at 40% = $1,333
Total tax = $2,833 per month or $16,998 for that period of 6 months.
However, at the end of the year, the correct figures for a gross wage of $60,000 would be:
$3,000 tax free
$14,000 at 15% = $2,100
$46,000 at 30% = $13,800
Total Tax Due $15,900
A Tax Refund of the difference, $1,098 would be paid after the tax return is submitted.
This figure would often be higher, after other tax allowances are also taken into effect...
The reason for this is that the Australian Tax Office has adopted a simpler system of allowing 1/12 of the annual threshold for every month, (or 1/52 if paid weekly).
This means that if someone does not work every week of the year, they temporarily miss out on that weeks threshold allowance, until the end of the year.
The UK system works on a cumulative basis, and calculates tax pretty accurately every week/month.
An example of the effect of this for someone who only works here for 6 months would be:
Based on a $120,000 annual salary, that would be$10,000 per month...
Gross Tax Calculated at:
First $500 tax free
Next $2,333 at 15% = $350
Next $3,833 at 30% = $1,150
Next $3,334 at 40% = $1,333
Total tax = $2,833 per month or $16,998 for that period of 6 months.
However, at the end of the year, the correct figures for a gross wage of $60,000 would be:
$3,000 tax free
$14,000 at 15% = $2,100
$46,000 at 30% = $13,800
Total Tax Due $15,900
A Tax Refund of the difference, $1,098 would be paid after the tax return is submitted.
This figure would often be higher, after other tax allowances are also taken into effect...
Hey dont fancy doing our accounts for this year do you!!!
Mar 5th 2009, 7:37 pm
#14
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