mandyp

Hi, I'm assuming that Im on the highest tax band at the moment. Over on a student visa, been working for about 8 weeks.

I work out my tax to be just under 29%. I know I can put in a tax claim in June/July do I have to remain on this tax band till then, will it go to a lower rate after? I can only work 20 hours per week so my gross should stay under 40k.

Any info appreciated, thanx.
Mandy

The Bloke

Tax rates depend on how much you earn over the financial year - July 1 to June 30. BTW, what are you doing, or better yet, what is your hourly rate as working only 20 hours per week to earn $40K is about $39/hr x 20hrs over 52 weeks, more if working less than 52 weeks. I, and alot of others, would like to be on that money, especially if only on a student visa.

micko

I hate to burst that little bubble, but you're no where near the highest tax band. Try 45% for size. Check out the ATO website for any advice you need. Just google ATO. Or if you can spare any of your 40k seek the assistance of a tax adviser/accountant. Good Luck.

St.Georges Girl

Bloody oath!

JackTheLad

Have you got a Tax File Number yet? You'll be on the 'emergency; tax rate until they get your TFN.

JTL

busterboy

I scoff at the thought of 29%.....

JackTheLad

I assume this is my own original thought, though someone may have said it to me many years ago.

Always assume 33% disappears between gross pay and net pay.

I've worked in many different jobs and many different countries, but it always holds true (to within a couple of %).

And its certainly true here. And like the OP, I only work 21 hours per week. That doesn't stop the government taking a third of my wage.

JTL

busterboy

Yes, losing 1/3rd outright is about right.

mandyp

Hi yeah, pretty lucky I guess tho having to work the weekends to make my 20hrs work for me!! Enhanced rate at the weekends means $42ph (time + three quarters).

I have a tax file number which I gave to my employer. So Tax I pay is bout right then?

I aint in any bubble, just must have wrongly assumed that me n hubbie were getting taxed at a higher rate at the moment.

Just more interested in whether or not there was a further 'hoop' to jump on the student visa, as in higher tax deductions!!

Cheers
Mandy

P.s. just checked out the ato site thanx. We'r on the basic non-residents tax at the moment which is 29%. Once we've been working for 6 months I THINK it should reduce a fair bit.

Please do not judge me by my hourly rate, I would gladly swap it for a lower rate and a PR visa!!

quoll

Once you stop paying the non residents rate you will also be slugged the medicare levy so take that into account as well - it will make it less of a difference. But otherwise, yes, on the low levels of tax it looks as if you will be paying about half the amount of tax plus the 1.5% medicare levy

mandyp

Thanx, tho do I really get the medicare levy even tho I'm not entitled to medicare? We have OSHC due to being students.

Cheers
Mandy

The Bloke

Everybody pays, and if you earn above a certain amount, you then pay an additional surcharge on top.
The following is from ...... http://www.ato.gov.au/individuals/co...tent/17482.htm


What is the Medicare levy?

Medicare is the scheme that gives Australian residents access to health care.

To help fund the scheme, resident taxpayers are subject to a Medicare levy.

Normally, we calculate your Medicare levy at the rate of 1.5% of your taxable income. A variation to this calculation may occur in certain circumstances.

Generally, tax offsets do not reduce your Medicare levy. However, if you have excess refundable tax offsets, we use them to reduce your tax, including your Medicare levy. For more information, see Private health insurance rebate.
Who has to pay the Medicare levy?

Most Australians are liable to pay the Medicare levy. The standard Medicare levy is 1.5% of your taxable income. However, this may vary according to your circumstances.

In some cases you may be exempt from the levy or it may be reduced.

To work out if you are eligible for the exemption or the reduction based on family income, read:

* Medicare levy reduction for people on low incomes, and
* Medicare levy exemption.

What is the Medicare levy surcharge?

Individuals and families on incomes above the Medicare levy surcharge thresholds, who do not have private patient hospital cover, may have to pay the Medicare levy surcharge.

This surcharge is in addition to the Medicare levy. We calculate it at the rate of 1% of your taxable income (including your total reportable fringe benefits). You will need to read Medicare levy surcharge to see if you have to pay the surcharge.
Taxable income

Your taxable income is usually the amount you wrote at taxable income or loss on page 3 of your tax return. For Medicare levy purposes, taxable income excludes the amount of any post-June 1983 elements of an eligible termination payment where the maximum tax rate is zero.

Note

If you received any exempt foreign employment income, we use a special formula to work out the amount of tax – including Medicare levy – you have to pay on your taxable income. You will not be able to work out your Medicare levy. We will work it out for you.

Working out your Medicare levy

If you want to work out your Medicare levy before you receive your notice of assessment, you can use the Medicare levy calculator.
What to read/do next

* Medicare levy calculator
* Medicare levy reduction for people on low incomes
* Medicare levy exemption
* Medicare levy surcharge.

mandyp

Thanx for that. It states that if we are not entitled to any medicare benefits (which as students we are not) we can apply for an exemption to the levy.

Thanx
Mandy

GaznEm

Hi Mandy,

It's great to hear that somebody on a student visa is enjoying the life and doing so well. It's really positive and helpful to see your posts. Good for you!!

mandyp

Cheers,

You guys are headed out soon too, yeah?!!

We've been v lucky from the moment we decided to come over, everythings pretty much landed in place for us!! HOPEFULLY it remains that way cause you really never know whats round the corner, we just stay positive and enjoy all that we have at the moment!

Cheers
Mandy