jon_d_h

Hi

I have recently been to Australia and stayed for a few months. I was told, when I leave Australia and come back home to UK, I can claim all my tax back. I looked into this and my "tax on taxable or net income" was around $8000. So I was told I would recieve all of this back. I filled in the forms from Australia Taxation Office and finally recieved a reply. It says:

tax on taxable or net income: $8200

Less Pay as you go (PAYG) credits and other entitlements (PAYG withholding (eg tax deducted by your employer or bank) which is around $6900

Then it says "amount payable" as $1300

I was told I could claim all my tax back but it looks as if I now have to pay $1300 more tax!!!

I may be confused so if anyone knows about this could let me know?

Thanks

Bermudashorts

Non residents and residents pay tax on Australian sourced income. Tax on income is hard to avoid in this life, not really sure why you would not expect to pay tax.

The non resident tax rate is higher than the resident rate and there is no tax free allowance. Had you declared yourself as resident originally and now I expect you have declared yourself non resident hence the increase.

I note you were on a WHV from other posts, I found this handy article which might explain some things.

Looks like you could ask for your super back anyway.

http://www.workstay.com.au/working_holiday_tax.htm

jon_d_h

Hi

Sorry for such a late reply. Only just heard back from ATO about what is going on and I am so confused. I spoke on the phone with them and mentioned I filled in a tax return form to claim tax back, not to pay even more tax to them after leaving the country. They said I needed to change the application and say that I was a resident where as originally I said I was a non-resident. I now have a reply asking me to proove I was a resident with a number of questions.

I have read the link post above but I cant understand whats going on?!

I am not sure what to do now??

Any advice

Cheers

Bermudashorts

Filling in a form isn't going to result in tax back if you are not entitled to tax back. You initially received some bad advice, you are not entitled to tax back just because you only worked here for a few months; death and taxes as they say (can't avoid them).

So what has happened is yoi went to ATO, announced you were a non resident thinking that would get you your tax back because of this incorrect advice you were given but in actual fact the situation is that non residents pay more tax than residents ... quite the opposite to what you were incorrectly told.

So now ATO seem to be saying to you prove you were a resident and then you won't have to pay the higher non resident rate. So I suggest you answer their questions but I think it will be difficult for you to convince them now and you are going to have to pay the tax. Best outcome is you don't, but I think you can forget about getting any kind of refund based on what you have said.

If you are leaving the country and not minded to pay the extra tax just be aware that if you ever decide to return in future, I believe it will come back to bite you.

HelenTD

I had a bizarre experience with the ATO when I returned to the UK after spending about 8 months here when I activated my PR visa. I was told that I could claim the tax paid in Australia when I returned to the UK. I ended up being told by the ATO that I was considered non-resident for tax purposes. Meanwhile the Inland Revenue told me that I was considered non-resident in the UK during the same period, which made sense as I was resident in Australia. I never did get to the bottom of it, didn't get any refund, and have never known exactly where I was for that year.

Bermudashorts

If you were only out of the UK for 8 months in total then you did not establish UK non-residency. One only becomes non resident if at least one complete tax year, april to april is spent outside the country.

HelenTD

Yes, but the ATO decided that I was non-resident in Australia as well, so technically I was not resident anywhere that year, so not entitled to any tax refund, even though I hadn't worked full-time for 12 months in total.

Bermudashorts

I said you *were* tax resident in UK. That is assuming you were only out of UK for 8 months, as you could not have spent at least one complete tax year out of the country.