Tax in Australia

The Australian tax system provided here is as an overview only. For specific details and advice all immigrants are advised to contact a tax advisor or visit the official website of the Australian Taxation Office (ATO).

In Australia, tax is applicable if you have:

• always lived in Australia
• moved to Australia and live here permanently
• been in Australia continuously for six months or more and for most of the time you have been
  in the one job and
  living in the same place, or
• been in Australia for more than half of the financial year, unless
  your usual home is overseas, and
  you do not intend to live in Australia.

Applying for a Tax File Number

Upon arrival in Australia you will need to lodge an application with the Australian Tax Office to obtain a personal Tax File Number (TFN). A tax file number is a unique number issued by the Australian Tax Office to individuals and organisations for identification and record keeping purposes. All Australian residents with income from employment or investments must have a tax file number.

Tax file number applications can be made by phoning the Australian Tax Office or a Centrelink office and requesting an application form. Alternatively all immigrants can apply for a tax file number online.

Income tax

The majority of people who work for an employer in Australia have their wages or salary paid directly into a bank account on a weekly, fortnightly or monthly basis. In most instances employers will deduct income tax from employee wages and send the tax payment to the Australian Taxation Office.

Income tax is paid on all salary and wages in Australia, as well as on any other forms of income. Other forms of income, such as income from investments and interest on bank accounts must be declared on a tax return lodged by 31 October each year for the previous fiscal year (1 July to 30 June).

Tax File Number declaration

Being an immigrant when you begin work with a new employer you must complete a TFN declaration form which will be used to determine how much tax you are required to pay. When starting a new job you have 28 days to provide your tax file number. If you do not provide your tax file number within this period it is likely that you will have tax deducted at the highest rate.