Tax Guide – Sydney
Tax in Australia is administered by the Australian Taxation Department (ATO). By law, each individual in Australia must submit a Tax Return to the ATO at the end of each tax year. It is commonplace for many people to use accountants to assist them through this process for a small fee. Foreigners are not exempt and are required to pay tax on income earned in Australia. In fact, in order to work in Australia, you must apply for a Tax File Number (TFN). The amount of tax is determined by the income bracket in which annual taxable income falls, although deductions will reduce the taxable income. This is classed as individual taxation.
There is also company taxation in Australia which operates at different levels and with additional requirements.
Keep in mind:
- If you do not have a TFN you may be over-taxed until you provide one.
- The tax year in Australia runs from 1 July through to 30 June.
- Any tax paid is redeemable in your home country if you should decide to return.
- Australian Tax Office http://www.ato.gov.au