Income tax - from 457 to PR - any difference?
May 13th 2008, 1:37 pm
#1
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Thread Starter
Joined: May 2006
Location: Como, Perth...now, Kinross, Perth
Posts: 182
Income tax - from 457 to PR - any difference?
HI everyone,
Need some advice about income tax - we've recently finally got our PR , after being here for 12 months on a 457, and not too sure whether this will affect how much tax we will have deducted from our pay?
I have a tax booklet ("fortnightly tax table" -great bedtime reading!
) which states deductions on fortnightly pay rates, and we've been paying tax at the highest rates, that is "No tax-free threshold".
It also states amounts with "tax-free threshold"s which are lower rates.
I honestly haven't clue
If anybody has gone from temp visa to PR and knows what its all about I'd be eternally grateful!!!!
Louise
Need some advice about income tax - we've recently finally got our PR , after being here for 12 months on a 457, and not too sure whether this will affect how much tax we will have deducted from our pay?
I have a tax booklet ("fortnightly tax table" -great bedtime reading!
) which states deductions on fortnightly pay rates, and we've been paying tax at the highest rates, that is "No tax-free threshold".It also states amounts with "tax-free threshold"s which are lower rates.
I honestly haven't clue
If anybody has gone from temp visa to PR and knows what its all about I'd be eternally grateful!!!!
Louise
May 13th 2008, 7:12 pm
#2
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Joined: Apr 2005
Location: Melbourne
Posts: 31
Re: Income tax - from 457 to PR - any difference?
I never noticed a difference. When I went fro WHV to BV to PR it seemed to be the same tax throughout. My accountant managed to get me a refund on WHV, but that was because of the 3 month thing and I was paying a years rate for only 3 months.
Honestly I never understand the taxation system here, as you pay monthly tax on your earnings and savings and then pay a further yearly tax on any savings, so it feels like you get taxed twice. I just where my best sunday dress whenever I go to my accountant, as that at least makes me feel good.
As with all things here is my disclaimer. This advice is not professional and should not be regards as correct. Please read the PDS for further information.
Honestly I never understand the taxation system here, as you pay monthly tax on your earnings and savings and then pay a further yearly tax on any savings, so it feels like you get taxed twice. I just where my best sunday dress whenever I go to my accountant, as that at least makes me feel good.
As with all things here is my disclaimer. This advice is not professional and should not be regards as correct. Please read the PDS for further information.
May 13th 2008, 10:33 pm
#3
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Joined: Jun 2007
Location: Peregian Springs, Sunshine Coast
Posts: 1,872
Re: Income tax - from 457 to PR - any difference?
HI everyone,
Need some advice about income tax - we've recently finally got our PR , after being here for 12 months on a 457, and not too sure whether this will affect how much tax we will have deducted from our pay?
I have a tax booklet ("fortnightly tax table" -great bedtime reading!) which states deductions on fortnightly pay rates, and we've been paying tax at the highest rates, that is "No tax-free threshold".
It also states amounts with "tax-free threshold"s which are lower rates.
I honestly haven't clue
If anybody has gone from temp visa to PR and knows what its all about I'd be eternally grateful!!!!
Louise
Need some advice about income tax - we've recently finally got our PR , after being here for 12 months on a 457, and not too sure whether this will affect how much tax we will have deducted from our pay?
I have a tax booklet ("fortnightly tax table" -great bedtime reading!
) which states deductions on fortnightly pay rates, and we've been paying tax at the highest rates, that is "No tax-free threshold".It also states amounts with "tax-free threshold"s which are lower rates.
I honestly haven't clue
If anybody has gone from temp visa to PR and knows what its all about I'd be eternally grateful!!!!
Louise
Think you can't get LAFHA when you go to PR (if you had it in the first place) and actually it should stop as soon as you even apply for PR.
May 13th 2008, 11:32 pm
#4
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Joined: Jun 2003
Location: Sydney beachside
Posts: 3,505
Re: Income tax - from 457 to PR - any difference?
There shouldn't be any difference in the tax you pay on a 457/PR.
On a 457 you are an Australian resident for tax purposes so should get the same tax allowances as anyone else. You shouldn't be paying tax using the no tax-free threshold rates.
An Australian resident (immigration-wise) is not the same as an Australian resident (tax-wise).
I'd check with whoever does your payroll - if you HAVE been paying tax from the wrong table then you'll get a nice refund when you do your tax return.
On a 457 you are an Australian resident for tax purposes so should get the same tax allowances as anyone else. You shouldn't be paying tax using the no tax-free threshold rates.
An Australian resident (immigration-wise) is not the same as an Australian resident (tax-wise).
I'd check with whoever does your payroll - if you HAVE been paying tax from the wrong table then you'll get a nice refund when you do your tax return.
May 14th 2008, 1:41 am
#5
Migration Agent
Joined: May 2002
Location: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)
Posts: 6,459
Re: Income tax - from 457 to PR - any difference?
I agree with Nicky.
Have you lodged your 2007 Tax Return yet? I recommend you see a good tax accountant and ensure you claim the tax free threshold as a tax resident of Australia.
Best regards.
Have you lodged your 2007 Tax Return yet? I recommend you see a good tax accountant and ensure you claim the tax free threshold as a tax resident of Australia.
Best regards.
May 16th 2008, 12:08 pm
#6
Forum Regular
Thread Starter
Joined: May 2006
Location: Como, Perth...now, Kinross, Perth
Posts: 182
Re: Income tax - from 457 to PR - any difference?
There shouldn't be any difference in the tax you pay on a 457/PR.
On a 457 you are an Australian resident for tax purposes so should get the same tax allowances as anyone else. You shouldn't be paying tax using the no tax-free threshold rates.
An Australian resident (immigration-wise) is not the same as an Australian resident (tax-wise).
I'd check with whoever does your payroll - if you HAVE been paying tax from the wrong table then you'll get a nice refund when you do your tax return.
On a 457 you are an Australian resident for tax purposes so should get the same tax allowances as anyone else. You shouldn't be paying tax using the no tax-free threshold rates.
An Australian resident (immigration-wise) is not the same as an Australian resident (tax-wise).
I'd check with whoever does your payroll - if you HAVE been paying tax from the wrong table then you'll get a nice refund when you do your tax return.
Hi,
I've checked with payroll (HCN -
), they have been taking tax from wrong table, roll on tax return time! louise
