Oz Bank Account and Tax for New Arrivals
May 10th 2005, 11:33 pm
#1
Account Closed
Thread Starter
Joined: Oct 2004
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Oz Bank Account and Tax for New Arrivals
When you arrive ensure you tell your bank immediately you get the TFN from ATO or you will be hit with a 'TFN Withholding tax'. Also, ensure they have you down as PR or you get hit with 'NR withholding tax'.
Nicely explained on HSBC's site http://www.hsbc.com.au/commercial/government/index.html
Ian
Nicely explained on HSBC's site http://www.hsbc.com.au/commercial/government/index.html
Ian
May 11th 2005, 12:28 am
#2
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Joined: Feb 2002
Location: Melbourne
Posts: 121
Re: Oz Bank Account and Tax for New Arrivals
Originally Posted by ebo1608
When you arrive ensure you tell your bank immediately you get the TFN from ATO or you will be hit with a 'TFN Withholding tax'. Also, ensure they have you down as PR or you get hit with 'NR withholding tax'.
Nicely explained on HSBC's site http://www.hsbc.com.au/commercial/government/index.html
Ian
Nicely explained on HSBC's site http://www.hsbc.com.au/commercial/government/index.html
Ian
Colin
May 11th 2005, 12:37 am
#3
Guest
Posts: n/a
Re: Oz Bank Account and Tax for New Arrivals
Originally Posted by colinmorgan
I've just got stung for that. I have never been asked for my TFN and have just been taxed 93% of my earned interest. So much for a high interest account
Colin
Colin
But 93% ?? How did they do that figure ?
May 11th 2005, 12:50 am
#4
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Re: Oz Bank Account and Tax for New Arrivals
Tax rates on Bank Interest:
As a Permanent Resident with a TAX FILE Number, there will be No Tax deducted at source. However, this income will be added to your annual income at Tax Return time, and any tax due, will be collected then, at normal income tax rates.
If you do NOT quote your Tax File number, then Tax WILL be deducted at source at a current rate of 48.5%.
This tax paid will be credited into your Income Tax calculations at Tax time, and any overpayment will then be credited back to you, so that the end result is total tax paid being calculated at the correct tax band rate.
If you are a NON resident, and have notified the bank accordingly, then you will have 10% tax deducted from the interest.
As a Permanent Resident with a TAX FILE Number, there will be No Tax deducted at source. However, this income will be added to your annual income at Tax Return time, and any tax due, will be collected then, at normal income tax rates.
If you do NOT quote your Tax File number, then Tax WILL be deducted at source at a current rate of 48.5%.
This tax paid will be credited into your Income Tax calculations at Tax time, and any overpayment will then be credited back to you, so that the end result is total tax paid being calculated at the correct tax band rate.
If you are a NON resident, and have notified the bank accordingly, then you will have 10% tax deducted from the interest.
May 11th 2005, 3:29 am
#5
Drunken Aussie
Joined: Jun 2003
Location: Brisvegas
Posts: 1,080
Re: Oz Bank Account and Tax for New Arrivals
i purposely haven't told them my TFN so that i get a nice lump sum at the end of the year (or if i owe tax like last year i have less to pay).
May 11th 2005, 4:43 am
#6
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Joined: Feb 2002
Location: Melbourne
Posts: 121
Re: Oz Bank Account and Tax for New Arrivals
Originally Posted by ABCDiamond
Don't panic too much, it will all get sorted out in the annual tax return
But 93% ?? How did they do that figure ?
But 93% ?? How did they do that figure ?
Cheers
Colin
May 12th 2005, 3:05 am
#7
Retired
Joined: Apr 2004
Posts: 34,649
Re: Oz Bank Account and Tax for New Arrivals
Originally Posted by ABCDiamond
Tax rates on Bank Interest:
As a Permanent Resident with a TAX FILE Number, there will be No Tax deducted at source. However, this income will be added to your annual income at Tax Return time, and any tax due, will be collected then, at normal income tax rates.
As a Permanent Resident with a TAX FILE Number, there will be No Tax deducted at source. However, this income will be added to your annual income at Tax Return time, and any tax due, will be collected then, at normal income tax rates.
If you are a NON resident, and have notified the bank accordingly, then you will have 10% tax deducted from the interest.
I understand the 10% NON-RESIDENT witholding tax can be included as a credit on your UK tax return.
Jeremy
May 12th 2005, 3:07 am
#8
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Joined: Apr 2004
Posts: 34,649
Re: Oz Bank Account and Tax for New Arrivals
Originally Posted by colinmorgan
Not sure how they came to that figure, and the bank didn't know either. I could appeal, but I think I'll wait until the tax return.
Cheers
Colin
Cheers
Colin
If tax at more than 48.5% was witheld then it's the bank's problem and you need to sort it out with them. The bank ought to be able to explain exactly how the witholding tax was calculated as they are the ones that do the number crunching - not the ATO.
Jeremy
May 12th 2005, 9:15 am
#9
Forum Regular
Joined: Feb 2002
Location: Melbourne
Posts: 121
Re: Oz Bank Account and Tax for New Arrivals
Originally Posted by JAJ
Who's "they".
If tax at more than 48.5% was witheld then it's the bank's problem and you need to sort it out with them. The bank ought to be able to explain exactly how the witholding tax was calculated as they are the ones that do the number crunching - not the ATO.
Jeremy
If tax at more than 48.5% was witheld then it's the bank's problem and you need to sort it out with them. The bank ought to be able to explain exactly how the witholding tax was calculated as they are the ones that do the number crunching - not the ATO.
Jeremy
Spoke to the bank again, and they found another batch of interest paid into the account that was not showing on the internet. So it would be about right at 48.5%.
Thanks
Colin
