Australia is a country with very good tax laws! Whether you are working in Australia or working officially, it is necessary to apply for an individual tax number. The purpose of having a personal tax file number, also known as a tax file number (TFN), is not only to pay taxes in Australia according to the law, but also to complete the annual personal tax refund. For international students studying in Australia, applying for a personal tax number in time after settling in Australia is also one of the basic requirements for legal part-time work.
1.What is a Tax File Number (TFN)?
A Tax File Number (TFN) is a unique set of personal numbers that are used to help collect taxes in Australia. A person will only have one set of tax numbers in their lifetime, even if you apply for other visas. Therefore, students need to keep this number carefully and do not share it with others to avoid identity theft, tax disputes, etc. Notify the IRS promptly when you change your residential address or name. If you do not have a fixed address and cannot receive a tax identification number, or if you have lost your tax identification number, you can bring your passport to any tax office in Australia to obtain a new tax identification number.
2.Why should I apply for a tax identification number?
According to Australian tax law, all people working in Australia must have their own tax identification number. Often, when looking for a job, employers will also ask for a tax ID number to facilitate payroll and tax processing. When receiving salary, the employer must deduct a certain percentage of the tax from the salary to the Australian Taxation Office in advance, and the employer and the company need to give you corresponding rights and protections, such as insurance, pension, etc. If you don't have a tax number, you may be deducted up to a super high tax rate of close to 50%! If your income is lower than a certain level, you can get a tax refund, and the tax paid by students working can be fully refunded. Therefore, applying for a tax ID number is one of the first things students do before they start working or working.
Who visa holders need to apply for a tax identification number?
A valid permanent residence visa.
There is one of the legal work visas in Australia.
A valid student visa.
A valid visa to stay in Australia.
3.How long does it take to apply?
You can only apply for a tax number after entering Australia, and you can usually receive it in about two weeks. If you have not received the letter after submitting it, you can call the 132861 or go to the local tax office in person to check it.
4.What are the ways to apply for a tax identification number?
There are usually 3 ways to apply for a tax identification number:
1) On-site application.
Go directly to the local tax office with your passport to apply for a tax number, there will be tax offices in major cities in Australia, and students can find the nearest tax office address through Google.
The IRD is usually open from 8:30 am to 4:45 pm, Monday to Friday
2) Letter application.
Go to the official website of the Australian Taxation Office:
*Tax ID number application form, print it out after filling it out, send it to the mailing address in the application form, and wait for a reply.
3) Online application.
Please see below".Tutorial on how to apply for a tax identification number online
In fact, the most convenient of the above 3 application methods is to apply in **. Fill in the basic information and delivery address on the webpage, submit it and after verification, you can receive the tax ID from the tax bureau in about two weeks.
5. Tutorial on applying for a tax ID online
1) Application materials:
To apply online, the Australian Taxation Office (ATO) will need the following information from the applicant:
Passport information, or visa information.
Tax ID number to the address to which it will be delivered.
2) Online application:
If you meet the online application conditions and have all the information required above, you can log in to the above **Click to apply. The whole process will last about 20 minutes. The application page is simple and comes with a reminder function. After the online application is completed, the individual tax number will be sent to the applicant's mailing address within the working days notified by the Inland Revenue Department.
In the future, you can continue to fill in the personal information as required, and you won't take screenshots one by one.
3) About the payment of taxes.
The primary purpose of applying for a personal tax number TFN is to pay taxes in accordance with the law. So how do you turn it in? Before you can legally work or work, you only need to provide your employer with your personal tax ID number, bank account information, and pension account number. Your employer will help you pay your taxes. The final salary received by an individual is the after-tax salary and does not need to be taxed again. When changing jobs, simply re-provide the above information to the new employer.
4) About tax returns.
The prerequisite for a tax refund is to file your taxes correctly. Only by accurately and fully declaring one's income, expenses and other information to the Australian Taxation Office for one year can you get the tax refund you deserve. Australia's prescribed tax filing period lasts for 4 months, i.e. from 7 per year1 to 1031st. For individuals who file through an accountant, the filing period is 71st to 3rd of the following yearNo. 31 for a period of 9 months.
The main information required for tax declaration includes:
a. Individual tax number.
b. Pay stubs (i.e., annual salary summaries provided by the employer), as well as various other information of an income nature, such as pensions, bank interest, real estate investment, **, etc.
c. Vouchers for various expenses arising from work and business, such as various invoices.
d. Bank account information.
Tax filing method: The current mainstream way for individuals to file their tax returns is through the Australian Taxation Office (ATO)'s e-tax software**. Tax preparers can log in to ATO*** e-Tax and use it to file their taxes 24 hours a day. First-time tax filers will be asked to enter some personal information and then be prompted to complete their tax returns.
5) About the tax rate:
Please refer to the following for the Australian personal income tax rate**.
Screenshot from: Australian Individual Income Tax Calculation Network.
The amount of personal tax can also be calculated by the following**:
6) About tax refunds.
After filing your tax return truthfully and without error, your refund is ready. The IRD's system will automatically calculate the amount of tax refund based on various information provided by the individual, such as salary income and property purchase information. **The personal bank account left during the tax filing process will be used for the tax refund, and the tax office system will automatically return the refund amount to the account.
It is worth mentioning here that there are a number of ways to legally reduce your tax payment in Australia. For example:
By appointing an accountant to file your taxes. Accountants are good at making reasonable accounts for more complex personal income and expenses, so as to achieve the effect of legally reducing the amount of tax payment.
Many expenses that are not limited to buying a house or a car, such as travel expenses, ** expenses, and electrical maintenance expenses, can be used to declare tax refunds. The premise is to keep the proof of these expenditures.
*Losses can also be included as one of the tax refund items if they meet certain requirements.
Of course, the feasibility of many legal tax avoidance methods depends on individual circumstances, and filers can refer to the instructions of the Australian Taxation Office.
After reading the above strategies for applying for a tax number, tax declaration and tax refund, you may wish to sort out and calculate the tax refund items you can declare according to your personal situation, and prepare in advance for the upcoming tax filing period.
What happens if you don't get your tax refund on time?
If you choose to file your own tax return but fail to file your return by 1 November, you will be fined $222 for every 28 days overdue, with a maximum penalty of $1,110 cumulatively.
If a taxpayer chooses to file with a registered tax agency, they must "hire" a tax return** by October 31, although they do not have to file their personal income information with the IRS by November 1.
Note: Failure to file on time can result in fines of up to $1,100.
Therefore, I would like to remind international students who are working part-time and office workers who have just started to work that they must not forget to file their taxes!
Disclaimer, the above content is collected from various channels on the Internet for your reference, all kinds of requirements and information may vary with time update, you are subject to the latest official information.