fa kin su pa

I started working 13th April 2009 in Australia Qld. So far I have earned $8500 and paid tax of $1400. I informed centre link of my UK earnings before arriving in Australia (1st July 2008 - 1st April 2009) as being $54,000 (£27,000).

So for the purpose of centre link I have earned between 1st July - 31st June 2009 $62,500.

Ok, so the Tax question and I hope it makes sense.

When I do my tax return will I rreceivethe tax back that I have paid so far ($1400) as I have only earned $8500 while in OZ or do they add my UK money into account and say I have earned the $62,500 and therefore I get no tax return?

Cheers guys

ABCDiamond

The Tax man (ATO) is not interested in your UK earnings prior to becoming tax resident.

It is only Centrelink that use that info for their side of things.

Your Tax due on taxable income is $1,050.00
less
Low income tax offset $1,200.00

= NO tax due, full refund of the amount paid.

dpande

Is that right?
So because I earned a few cents below the medicare levy surcharge threshold last year, I'm exempt because the prior UK earnings (which take me over the threshold) aren't counted?
Wa-hey!!

Now I just have to get my head round doing my first ever UK self-assessment tax return for 08-09.

fa kin su pa

Thanks very much for that. So do you think there is any point in going to a Tax advisor this year to do my return as there should be nothing for them to sort out? Or should I do my own return and save myself another $150

Cheers

micmay3_in_oz

It's straightforward enough to do it yourself if you have download etax. Given that you should get it all back I'd go with etax - then perhaps if things become a little more complicated in this current tax year us an agent. It is straightforward just a matter of personal preference.

Mx

ABCDiamond

Send me $50 and i'll repeat the figures above


I think you may be OK to do your own, although.... I am just trying to think what Tax rebates you may be able to get on top of the full refund......

Do you have school kids, and purchased them a computer, or did they use the internet ? There may be some other things, but my brain doesn't feel like it is on top gear today... You know you sometimes think that you are missing something, but can't figure out why ... Well, that's me just now.

fa kin su pa

Yes we do use internet and have brought school books, pens etc (son just started new school when we arrived) I understand that I can also claim for millage, Uniform washing, however, as I get all the money back I have paid so far would there be any point in adding these. How can I get back more than I have paid? It was suggested to add them to this years and say I forgot last year (can that be done) LOL

ABCDiamond

The education rebate may be claimable on top

The education expenses may be able to be claimed by you aswell.

I suggest you run it through e-tax, claiming the education things, if applicable, and see how it comes up.

Your mileage and washing etc., can't be done, as that is a deduction against income.

fa kin su pa

Thanks mate your a star

carlap

This is mainly to ABC Diamond. Great info on his web site, including tax matters. However, is the $120k annual salary calculation right when working for 6 months. I quote:
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

Surely you would get the full $6000 tax free and $29000 at 15% as these are annual income allowances.

Also (as I have hijacked this thread I will ask one more.
I lost a lot of money on my UK pension last year since we came to Oz in August. Can I declare the loss (don't think so). Next year may see some growth due to recovery. Do I have to claim the growth for the tax year, or can I ignore any growth until it gets back to what it was worth when entering Oz. Otherwise if there is boom and bust every couple of years (where the bust is bigger than the boom) you will pay tax on money you will never see.

ABCDiamond

You are correct, I overstated the tax on that example. It should have been $12,450 + $900 Medicare = $13,350

Accurate comparison examples are:
Actually I totally stuffed that earlier example that you quoted!
I am surprised that no one noticed that 3k + 14k + 46k adds up to more than 60k !!

That was done on Mar 3rd 2009, 9:50 pm. I must have been getting tired. I hate it when I make a mistake as stupid as that..

carlap

I did see the totals didn't add up to $60k but forgot to mention it.

However, my original question was whether the allowance should have been half for the 6 months wage eg $3000 rather than $6000 tax free allowance. But then I read that you only get a pro-rata reduction.

So, you kind of said I was right in that your calculation was wrong, but I think (and could you confirm please) that the allowance you give are half due to the example of working for 6 months BUT this is assuming you are resident for just 6 months. If you worked for 6 months, but were resident for the whole year, you would get the full allowance.

Hope this is clear !!

Bermudashorts

I have no experience specifically of Australia, but I honestly cannot imagine there is a country that taxes on unrealised gains and losses such as you describe. Otheriwse people would be paying tax on rise and falls in things like house prices, whether or not they actually sell the house.

Sorry if I have misunderstood your query, my comment is based on my assuming you have a pension pot probably invested in shares and the value of your shares is going up and down one year to the next.

ABCDiamond

It's only the $6,000 tax free bit that is pro-rata, due to residency only, hence my 'total' stuff up.

scott4526

Can anyone help!

My mother in law in england recieved a letter today saying that i owe the tax office 8000 pounds from two years ago. I was only in business for 10 months before moving to oz on a 457. At the moment iam applying for PR .

1. Will this affect my PR application.

2. What will happen now will they go through ATO.

Any info will be gratefully recieved.

I intend on paying this debt just hoping it doesnt affect my visa.

Thanks

Scott