John Mason +44 (0)151 449 3938 International House 35 Wilson Road Huyton Business Park

Australia

Paying Tax in Australia

Everyone who works in Australia, whether they are citizens, residents or on a working holiday visa, pays tax. Remember, that you not only pay tax on your Australian income, you will also be liable to pay tax on any income you receive worldwide. This could include your pension, rental income or interest on investments.

Taxes in Australia are levied at three levels – federal, state and local. The system is complex with each state having its own rules. The Tax Act has almost 4,000 pages, so it’s advisable to consult a tax expert to get to grips with system.

The first thing you need to do is apply for a Tax File Number (TFN). You can do this online before you arrive in Australia. Your TFN number will remain the same for the whole of your life, just like the UK’s National Insurance Number.

Federal Tax
The Australian tax year runs from 1st July until the 30th June. Federal tax is levied under a two-tier system. The First-Class System is for self-employed people and companies and the Second-Class system (PAYG – Pay As You Go) is for employees.
Self-employed people pay their tax in arrears and employees’ salaries are taxed at source by their employers.

Tax Rates

Annual Taxable Income – Tax on this Income
0 – $18,200 – Nil Tax
$18,201 – $37,000 – 19c for each dollar over $18,200
$37,001 – $80,000 – $3,572 plus 32.5c for each dollar over $37,000
$80,001 – $180,000 – $17,547 plus 37c for each dollar over $80,000
$180,001 and over – $54,547 plus 45c for each dollar over $180,000

On top of this tax payers pay a 2% Medicare levy and those earning over $180,000 per annum, pay a 2% Temporary Budget Repair Levy.

Fringe Benefit Tax (FBT)
Fringe Benefit Tax is paid by employers, not employees. Tax is levied on the following fringe benefits: –
• Car fringe benefits
• Car parking fringe benefits
• Entertainment and fringe benefits
• Expense payment fringe benefits
• Loan fringe benefits
• Debt waiver fringe benefits
• Housing fringe benefits
• Board fringe benefits
• Living away from home allowance fringe benefits

GST – Government Sales Tax
Government Sales Tax stands at 10% in Australia and is levied on a variety of goods and services. From 1st July 2017, there are some changes in GST: –
• All goods imported by consumers will be subject to 10% GST.
• “Netflix” tax – music and digital streaming services bought online will now be subject to GST.

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As one of the leading Movers on a national and international scale, we pride ourselves on providing a professional and friendly service from our highly trained and competent team. We have been recognised by the networks below and we are, therefore, proud of our credentials.

Some of our Customer Reviews

Thank you and everybody involved, you are an excellent team and an absolute pleasure to deal with.

J.D. Liverpool, UK to Toronto, Canada -
July 2017

My whole experience with John Mason's has been very good, from having Tony surveying till today with the container being packed, I will definitely recommend John Mason to provide removal services.

M.H. South Shields, UK to Perth, Australia – July 2017

Thanks Suzanne for all your help – it’s not easy trying to sort things out from such a long distance away and you’ve been superb! Thank you!

C.H. Warrington, UK to Edmonton, Canada - August 2017

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