Tax in Australia.

Welcome from Australia's first and oldest bank, Westpac. We understand that a new beginning in a new country is a big decision. This is why we are excited and passionate about supporting you every step of the way. This simple video series covers some of the basics of living and banking in Australia. We hope that you find it helpful.

Tax in Australia. If you work within Australia, you will most likely pay a portion of your pay to the government in the form of taxes. Taxes are used to provide public services, such as roads, hospitals, and schools, among other things for the community. To work in Australia, you need a visa that allows you to work in Australia.

You should also have a tax file number (TFN) which you apply for with the Australian Taxation Office (ATO). A TFN is your personal reference number in the ATOs system. It assists them to identify you and the amount of taxes you have paid.

When starting a new job in Australia or opening a bank account that earns interest it's likely you will need to supply your TFN as they may have an obligation to withhold tax from your pay or your interest income and send it to the ATO. Your employer or the bank will need to report your TFN to the ATO to determine the amount of tax you have paid in each income year.

The amount of tax paid by your employer should be shown on your pay slip. Whilst it is not compulsory to have a TFN to work, it can be to your advantage to have one. It helps you to make sure that you pay the right amount of text and that the tax you do pay is attributed to you.

If you do not, you may end up paying more tax and having no entitlement to government benefits that you may otherwise be eligible for. Your TFN should be kept safe and not included on things like your resume. You will only ever need one personal TFN in Australia.

The amount of tax paid Australia depends on a number of factors including how much you earn. The ATO website www.ato.gov.au provides more information on the different tax rates applicable. The income year in Australia runs from July 1 to June 30. Every year you work, or part thereof, you are required to complete a tax return.

You can choose to either complete this yourself or pay for the services of an accountant or tax agent to complete it. Your tax return should include all income you have during the income year from anywhere in the world, and any tax you, or your employer on your behalf, have already paid.

There are some expenses that the ATO allows you to claim as deductions against your taxable income. For example, some work-related expenses or donations you have made to eligible charities. It's important to keep records, such as receipts, for the amounts you claim in your tax return.

There is more information on these on the ATO website or ask your tax agent. The amount of tax you are required to pay is then calculated on your final taxable income. If the amount of tax you have already paid is more than this amount you may be eligible for a refund. If you have not paid enough tax, then you will need to pay the difference to the Tax Office.

Whilst tax in Australia seems complicated and rules are always changing, having a basic understanding will help you ask the right questions of your employer, your tax agent, or the tax office. Taxes are important to help make Australia a great place to live. Contact Westpac today. We would be happy to discuss your needs further.