Tax
 

So I started work in Australia on 28th February, my understanding is that this means I am eligible for 5/12 of the tax free allowance, is that correct?

Does it also mean I will be eligible for 5/12 of the dependent spouse allowance?

Finally do the tax brackets decrease pro rata as well, or do they stay at 37k and 80k?

Re: Tax
 

Best to chat to an accountant or tax agent, you'll probably get lots of different answers otherwise.....:)

Re: Tax
 

I'm just about to, but I don't trust them either :lol:

Re: Tax
 

The tax brackets aren't pro-rata.

And yes 5/12 of the tax free allowance is probably correct, did you also arrive in Feb?

Re: Tax
 

yep also arrived in February. Tax agent was a bit useless, obviously had no idea if being on a 457 made me a resident for tax purposes or not, I soon made her mind up when it came back 5k different :lol:

Still got the feeling I've been stung, wife doesn't work and we have 2 kids, but according to agent I couldn't claim the dependent spouse allowance :thumbdown:

Re: Tax
 

Personally, I'd get another agent to take a look :)

The agent I used the first year was rubbish, and I now know that she didn't claim lots of things that I was entitled to! :sneaky:

Re: Tax
 

If this is your first time working in AUS you will be entitled to the part allowance of the tax free portion but the whole of the tax bracket amounts.

The prorata is also applied to other income etc for your first partial year working.

Check out the ATO website and also get yourself on line for your tax return so you can apply some of the calculations yourself even if an agent does the final sumbmission.

http://calculators.ato.gov.au/scripts/axos/AXOS.asp is a good place to start for an overall idea

Going to a Tax agent does not guarantee they know what they are talking about many are students employeed to make a fast buck this time of year.

Re: Tax
 

So the outstanding question is am I eligible for the dependent spouse allowance, looks like I'm resident for tax purposes but is she since she's not working?

Re: Tax
 

I've got no idea how it works but I was in your exact position last year, got here in Feb, started work 1 March, and once I got round to sending my tax form off I got a tasty rebate :thumbsup:

Re: Tax
 

Like I said the ATO website and the information on Tax returns is very good - we cannot answer your question because we do not have enough information

Try this for starters - they also give you a number at the bottom to call

http://www.ato.gov.au/individuals/co...t/00216533.htm

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Are you an Australian resident?
You must print X in the YES box if you were an Australian resident for tax purposes for all of 2010-11. If you were not an Australian resident for tax purposes for all of 2010-11 print X in the NO box.

Generally, we consider you to be an Australian resident for tax purposes if:

you have always lived in Australia or you have come to Australia and live here permanently
you have been in Australia continuously for six months or more, and for most of that time you worked in the one job and lived at the same place
you have been in Australia for more than six months during 2010-11, unless your usual home is overseas and you do not intend to live in Australia
you go overseas temporarily and you do not set up a permanent home in another country, or
you are an overseas student who has come to Australia to study and are enrolled in a course that is more than six months long.
If you need help in deciding whether or not you are an Australian resident for tax purposes, go to the Are you a resident? tool or phone 13 28 61.

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I would hazard a guess that if she is over here living with you and you are paying they way - then yes she is a dependant / tax resident - but please look up the references given and get an answer from a professional. If you download the on line Tax return it guides you through all the questions with loads of information.
Good luck