sparkusmarcus

Ok decided to work out what I should get paid in Aus by looking at my take home pay in the UK and trying to get that to be the same in Australia.

Right I've found the new tax thresholds in Aus that come in, in July. I'm right in thinking that as an expat I pay tax straight away so 16% from 0-$21600 then onto the other thresholds.

Ok so think I can work that out.

What I'm wanting to know is the superannunation (9%?) on your gross pay and then income tax gets charged on that amount (gross pay minus superannation, then on that amount minus income tax, medicare, etc).

I'm also trying to find out is what rate is medicare paid at? Also are there any other taxes that come straight out of your pay packet? If so what are they and what are the rates?

Many thanks

Mark

Buzzy--Bee

Being an expat does not by itself affect your tax status. I believe you will get the same tax allowances as Australians whatever your nationality provided you have a Tax File Number and are resident in Australia for tax reasons (different from your immigration status).

See http://www.ato.gov.au/individuals/content.asp? for more details.

Cheers

Buzzy

sparkusmarcus

Thanks for that, so as I'll be taking out private medical care my medicare rate would be 1.5% or my gross income?

The question I'm really not sure is the one about the superannuation. I can't seem to find much on that front.

Thanks

Mark

Buzzy--Bee

Superannuation is not really related to tax. It is a contribution normally paid by your employer into a superannuation fund for your retirement. It seems that 9% of your salary is the amount normally paid, but this is ON TOP OF your salary, not a part of it.

So you need to be clear when accepting a job offer - does the figure quoted include superanuation or will it be on top of the figure quoted.

Cheers

Buzzy

Hafan

Not really sure how it all works, but I know its my employer that pays the 9% super, not me, so no income tax on it. Think you can put extra into your super yourself and the tax rate is 15%

sparkusmarcus

So say if I earned $60,000 and the super was included in that it would be 9% gross ($5400). Would the tax man then take the $60,000 and start taxing on that or would he take the figure of $54,600?

Sorry about being quite so detailed, just need to make sure I understand how it would work.

Thanks

Mark

sparkusmarcus

Ah thanks Hafan, starting to make sense.

Cheers

touchingcloth

I suppose Superannuation would be treated the same way that a work pension scheme is treated here in the UK.

i.e its deducted from your gross pay. Then you are taxed on what's leftover.

TC

ABCDiamond

On the above scenario, your Income would be classed as $55,045.90 and taxed on that. The employer then pays 9% of that figure ($4,954.10) into a super fund for you.

The Compulsory 9% Super contribution is not taxable income, and should be compared to the NI contributions that a UK employer pays on your behalf, but you never see, and may never even know about

thebears

I think it used to be that you could sacrifice part of your gross income to be contributed towards your super. This had the affect of reducing your gross income for taxable purposes ie if your gross was 60K and you contributed 10K to a super fund, for taxable purposes your gross income would be 50K. However for contributions above 81K there is or was a 1% tax/charge on every 1000 upto a maxium of 15% ie 96K and above. This works out alot cheaper than 47% but is a toss up about having the money now, can you better invest/use it than putting it in your super.

Medic Levy was 1.5% last time I checked

You can also salary sacrifice for car purchase/school fees and alot more.

ABCDiamond

You can still do the same with a personal super contribution, which is different to the compulsory employers payment, although it can go into the same fund. ATO Salary Sacrifice for Super

Salary sacrifice for car purchase/school fees etc does depend on the employers FBT status, and needs expert advice.