Tax and Superannuation
| Tax and Superannuation |
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Australian Tax and Superannuation GuideWHAT IS TAX?Taxes that are paid to the Commonwealth Government are used to provide services to the community such as health, education, defence, roads and railways, social security and welfare. Tax is paid on all earnings within a financial year (July 1 – June 30) DO I PAY TAX?All employees must pay tax when working for money, irrespective of their visa status. WHAT IS A TAX FILE NUMBER? DO I NEED ONE?A TAX FILE NUMBER (TFN) is a registration with the Australian Tax Office for identification. If you have any intention to earn money in Australia, you must obtain a TFN. This can be obtained online (www.ato.gov.au) or by completing a form obtainable from this site or the Career Services Office. HOW DO I COMPLETE A TAX FILE DECLARATION FORM IN NEW EMPLOYMENT?All students studying at ICMS for a period of more than 6 months are Australian residents for taxation purposes, and are eligible to claim the tax-free threshold from their employer. However, if you have two jobs, you cannot claim the tax-free threshold from the second position. If in doubt, please refer to the website www.ato.gov.au DO I NEED TO LODGE A TAX RETURN?At the end of every financial year (June 30), and if you have earned money on which you have paid tax (usually recorded on the payslip) at any time during the prior 12 months, you are required to submit a tax return. HOW DO I LODGE A TAX RETURN?On July 1st, past or current employers are obliged to send you a group certificate. This outlines how much money you earned with them and how much tax you paid. The employer will send this to the address you used on the Employment Declaration Form you completed. You must have the form(s) before lodging your tax returns. If you do not receive this by the end of July, you should contact your employer's payroll department. You must complete your tax return between July 1st and October 31st. You then have three options for lodging a tax return:
What happens after submitting my tax return?If you were in the lower income bracket, you will receive a refund from the Tax Office in the form that you nominated (direct deposit or cheque) and this will be sent to your registered address. Tax rates 2008-09
WHAT IS SUPERANNUATION?Superannuation is a way of saving for retirement. Compulsory contributions are made into a superannuation fund by your employer. When you retire this money is paid to you either as a lump sum or as a superannuation pension. The amount of superannuation support your employer pays for you is based on a certain percentage of your earnings. I AM AN INTERNATIONALSTUDENT; CAN I CLAIM BACK MY SUPERANNUATION WHEN I LEAVE AUSTRALIA?Yes. You can claim back the superannuation payments your employer contributed to your super fund when you permanently leave Australia. Please note that your superannuation account is subject to a 30% withholding tax and a DIMIA fee. In order to process your application, you must provide documentation of your superannuation fund and evidence of your old visa and passport stamped by customs as you left the country. The Australian Tax Office (http://www.ato.gov.au/super) details the process for a temporary resident who has already departed Australia under the ‘Superannuation’ section of the website. Alternatively, you can call your superannuation provider and ask them for information on Departing Australia Superannuation Payment (DASP). We suggest referring to the Australian Government Tax Office website (http://www.ato.gov.au) for further information on tax or superannuation. |
