6 basics you should know about the Australian tax system


Are you new to Australia and don’t understand the Australia tax system? The Australian tax system like many other countries around the world has many intricacies. In this post, ImmiAdvisor answers 6 questions frequently asked by visa applicants.

1. What is a Tax File Number and how can I apply for one?

Anybody who earns money in Australia must have a Tax File Number (‘TFN‘). You can apply for a TFN online from the Australian Taxation Office (‘ATO‘), by phone or in person at the ATO office.

2. What should I do when I receive my TFN?

It is important to provide your bank with your TFN when opening an account, this will reduce certain fees and charges.

3. How much tax will I pay?

Personal income tax is levied on a sliding scale. Australian residents are not taxed on the first $18,200 (last updated 10 march 2015) earned in any one year – this is called the tax free threshold. For a full list of the sliding scale click here. However, if you have been living in Australia for less than 6 months you may not be classed as an Australian resident. If this is the case, tax is payable on every dollar earned. The standards used to classify you as a resident for tax purposes is separate from those used for classification for your immigration/visa status.

4. What is GST?

The Goods and Services Tax (‘GST‘) is a tax 10% on most goods and services purchased (known as VAT in some countries). In Australia the GST is included within an item’s price. This means that the price advertised/ on the sticker is the price you will be required to pay at the register. The receipt will show how much GST you paid.

5. What items will you not be required to pay GST for?

GST does not apply to most food, education, health services and eligible childcare.

6. What should I do if I have further questions?

Tax is collected by the ATO you can visit their website by clicking here. If you have in-depth questions and concerns about the tax system, we recommend that you see a specialist tax specialist or accountant.

If you would like ImmiAdvisor to blog about a specific topic please email sapna@immiadvisor.com

IMPORTANT NOTICE: ImmiAdvisor recommends you obtain your own independent immigration, legal, accounting, financial or taxation advice as appropriate. It is solely your responsibility to evaluate the accuracy, completeness and usefulness of all information provided through this blog/website. In no event will ImmiAdvisor Pty Ltd be liable to you or anyone else for any decision made or action taken by you or anyone else in reliance upon any information contained on or omitted from this blog/website.

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