Before starting any declared jobs, you will need to get a Tax File Number (TFN) from the Australian Taxation Office (ATO), a superannuation account and an Australian bank account. Below is some basic information to help you understand your taxes and daily financial obligations
A Tax File Number is necessary if you are looking for a job in Australia. It helps ensure that taxes are paid correctly. It is issued by the ATO.
You will use your TFN to:
To apply online, you need a valid passport or relevant travel documents and you must be:
▪ authorised to work in Australia.
▪ in Australia when you lodge your application.
If you are a permanent migrant or temporary visitor to Australia and apply for a TFN online, your TFN will be sent to the Australian address you provided on your application. You will generally receive notification within 10 working days; however, it may take up to 28 days to process your application.
Only one TFN will ever be issued to you. Once you have a TFN , you don’t need to re-apply for one if your circumstances change, for example, if you change your name, have investments or claim government benefits.
Logde a TFN application (for permanent migrant and temporary visitor only)
Unlike in France where, if you are earning a regular salary, you calculate your tax yourself at the end of the financial year, Australia uses a Pay As you Go tax system, which means that the tax is automatically deduced from your salary. Furthermore, 1.5% of your salary is also deduced for Medicare (Australian medical care) purposes. If you are working as a contractor, however, PAYG system does not apply and at the end of the financial year you will have to calculate and pay your taxes to the government. Another 9% of your salary will also be directly transfered to your superannuation account. This sum will be refunded once your tax return has been filed and processed.
More information about Tax Return here.
Generally, at the end of the financial year (June/July), you fill in a tax return. If you find this too complicated, as finances can often be, there are many accountants who will complete your tax return for you, for a fee. There are a few things you need to be aware of when filling in your tax return, such as : the deductions you can apply for, the $300 tax return for miscellaneous work-related spending, which you are eligible for without proof, your medical costs if they exceed $1500 a year. You may be eligible for tax deductions for work-related expenses, work related self-education expenses, travel expenses for work and donations to charity.
Make you Tax Refund online thanks to our partner Bilateral Solutions.
The Goods and Services Tax (GST) isthe equivalent of the Value Added Tax or VAT (TVA) in Europe. Introduced in 2000, it is a tax which is applied at a flat rate of 10% on the majority of goods and services.
This retirement fund system, different from the French system, can be recovered when you leave the country permanently. It can be invested in different ways such as property and equity. Generally, if you’re working in Australia, your employer will transfer 9% of your earnings into a superannuation fund if earn more than $450 a week. Claims to retrieve superannuation payments must be made at the Australian Department of Immigration and Multicultural and Indigenous Affairs, to determine whether or not you are eligible for a payment.
It is important to remember that your payment will be taxed by the Australian government, at a rate of roughly 30%.