Tax is especially concerned to immigrants because Australian tax is based on where you live and where your income is generated. When immigrants move in or out of Australia, there are always some tax issues associated with. The tax refund tips for immigrant here are not the exhausted list.
Tax Refund for Immigrant
Tax refund of GST and WET before leaving Australia
You can claim a refund of the goods and services tax (GST) and wine equalisation tax (WET) that you paid on goods in Australia. This refund can be claimed when you are about to leave from Australian airport. Current GST is 10% of the value of the goods, WET is a tax of 29% of the wholesale value of the wine. These tax refund can be claimed by visitors or anyone leaving Australia.
Tax-free threshold for newcomers to Australia
If you are an Australian resident for tax purposes for a full year, you pay no tax on the first $18,200 of your income. Please be advised this is the threshold valid for 2018
If you entered with the intention of residing in Australia during the financial year, your tax-free threshold will be adjusted. Your tax-free threshold will be lower than the full year’s threshold available to most resident taxpayers. Your adjusted tax-free threshold could be lower to $13,464 of your income.
Claim super tax when Leaving Australia
Generally, any super contributions paid by your employer must remain in your super fund account while you are in Australia.
You can claim your super fund after you leave, if you:
- were in Australia on an eligible temporary-resident visa (but not if you were on visa subclasses 405 and 410)
- had super contributions paid by an employer while you were in Australia
- have left Australia and your working visa has either expired or been canceled.
Tax on backpacker
“Backpacker Tax”, which will affect all working holiday visa holders has changed from January 2017.
From 1st January, the tax rate for those on working holidays will be 15% on earnings up to A$37,000. After your earnings are above A$37,000, then ordinary marginal rates will apply, which means all earnings from A$37,001-$80,000 will be taxed at the standard 32.5% rate.
Backpackers will no longer be eligible to be classed as residents for tax purposes, no matter how long you stay in any one location. The tax on working holiday makers’ superannuation when they leave Australia will be fixed at a rate of 65%.
Government grant for business through the tax system
Australian tax is complicated. Australian tax on immigrants also has many implications such as government subsidies. It is always a good practice to get professional advice to confirm your eligibility before taking any actions. If you use the tax on immigrants properly, this could save you a thousand dollars and time of hassle.
