cookiestar

Right, I'm not the most financially minded person in the world ever, but if someone could please speak slowly for stupid that would be helpful.

I keep seeing people here talking about filling in their tax returns in Oz. Why do you have to do this? In the UK I PAYE on my income, and have no other income stream, so don't need to do a tax return.

Is the system different in Australia? Are you not taxed at source on income? Or are people filling in tax returns because they have other income sources?

Scotty1

Not there yet, but check out


http://www.ato.gov.au/individuals/co...1/002&st=&cy=1

There is a similar system to PAYE but that doesn't get you out of a tax return

Suspect reasoning is that they want you to positively say what you have earned, or received rather than default of no return.

tax office site has some handy calulators I have used to estimate tax we will pay, and the online filing system looks straightforward too.

Scotty

cookiestar

So you PAYE on your income then also do a tax declaration too - setting out your income? Do you pay tax on the interest on your savings at source or is that done through your tax return too? Honestly, I'm really dim when it comes to things like this, it's a wonder I can look after myself and keep going in a profession career

Ozzidoc

Tax on investment interest is usually done through the tax return.

You'll be entitled to a bunch more tax deductions in Oz compared to the UK.

eg Work in food service? The cost of all tights/pantyhose is a tax deduction.

Use your phone to make three work ph calls a week? tax deduction.

There's also an educational allowance - need to speak Cantonese for your work? Language lessons = tax deduction.

Scotty1

I have had an Oz account for a while now and had tax deducted at source. You would then put the interest and tax already paid in your return. You will need to do this for any interest you get on uk accounts too.
However while I am reasonably comfortable with the uk system and think I understand the oz one, I am going to get some advice to check out my assumptions before I file for the first time in Oz.
Don't want an expensive mistake!!
Am sure some financially savvy expert will be along soon!

Scotty

cookiestar

Right, so I need to be keeping receipts for expenditure that might be deemed as tax deductible? And I really need to find myself an accountant or something to get me through the first year.

Scotty1

not essential but sounds like a plan!

ABCDiamond

Almost everyone is entitled to some tax back every year.

Hence, doing a tax return gets most of us money back...

I could explain it exactly, and have done somewhere, I'll look back.....

Wol

Different country. Get used to it <g>.

The Oz online tax return is a breath of fresh air compared with the UK version (which I never got to work). It leads you through all the stages right up to filing online and you get the refund - or the extra to pay - within days.

cookiestar

Gosh, I'm not being critical of the system in any way. I'm aware that I'm moving to a different country and that there will be differences. I'm just trying to establish if/why I have to fill in a tax return when I don't have to do it in the UK.

ABC, thanks. I'll have search to see if I can find your previous posts, but if you wouldn't mind linking me up just in case that would be brilliant.

ABCDiamond

It might take me a bit of time, I just googled myself for it and got "Results 1 - 10 of about 682 for abcdiamond tax return."

moneypenny20

Gobby sod

You have to do a return and you generally get a refund. The etax (on line tax return) is very simple and straightforward and they lead you through all the way.

ABCDiamond

And I did mine on it today, and it crashed my computer !!!


I think the refund number was too big...

WillBlack

The Law:
Do you need to lodge a tax return?

Your PAYE tax is not adjusted at source for many things which could increase or decrease the amount of tax you must pay, so there is an end of year accounting to determine the difference between what you have paid and what you must pay.