If you’re moving to or you’re planning to work in Australia, taxation is an important matter that you should learn about.
After all, what goes out should come back. If you’re new to the Australian tax system, here are some practical hints and tips you should know to ensure that your tax time will yield a windfall from the Australian Tax Office. These are just 4 tax tips you will find useful especially if you are new to the tax system here.
Look for a registered tax agent.
If you’re unfamiliar with Oz’s tax system, one way to file your taxes correctly is through a registered tax agent. They are lots of tax agents that specialise in expat and backpacker finance so you can be sure to get the assistance that you require. However, make sure that you shop around because fees can vary from one tax agent to another.
Price isn’t everything.
If you’re going to hire a registered tax agent, don’t settle for one that charges the lowest. When it comes to tax, it is also the case of “buyers beware.” If you don’t want to get ripped off, look for an agent or accountant who belongs to a professional organisation such as Certified Practising Accountants or Charter Accountants.
In case you encounter problems with the tax agent or accountant you’ve hired, you have a parent body to complain to. We have used taxback.com in the past and found them very reliable.
Apply for your tax refund well in advance.
If your work contract is set to expire and you have decided to return to Ireland, make sure that you give yourself a lot of time to file your application for a tax refund.
But if you don’t have the time to do that because you’ll still be working up to the last minute, you can still file an application. And if you’re already back home, you can simply phone or email your accountant in Australia with the details so you can get your refund.
Make sure that have an ABN or TFN.
For those who are arriving and working in Australia for the first time, make sure that you have an Australian Business Number (ABN) or Tax File Number (TFN).
Some backpackers prefer ABN over TFN but before you follow their lead, see to it that you weigh your options carefully. If you opt for an ABN, you are declaring yourself to be an Australian business and, therefore, you will have to pay GST and prepare a tax return. If you fail to do this, you may not be able to enter Australia again.
This is only a small number of tips you should know. For more details be sure to check out our working holiday tax back guide or our guide to claiming your super back.