Tax System

Whether you go to Australia to live there permanently or just for temporary work, expats will come upon the Australian Tax office. Tax in Australia is paid with direct and indirect taxes, levies and GST at local and state level.

For expats who are planning to work it is important that you have a tax strategy so that financial rewards can be enjoyed as part of work experience. Expats should ensure they have received the right advice about taxes.

The tax paid in Australia depends on how much someone earns which differs from income tax and if paying tax for Medicare. A tax file number (TFN) will need to be obtained to ensure that tax can be taken from your pay at the right rate. These rules are the same for temporary, permanent or non resident tax purposes. Taking the right amount of tax is the employer’s responsibility which is based on an individual’s pay, income, benefits and other benefits in the salary.

There are many temporary residents who reside in Australia each year as professional who are seeking experience in a work sector. Expats will need to consider salary packaging, share options and other employment related tax requirements.

If permanent residency has been obtained by an expat, the tax position will change considerably. They are subject to tax on their worldwide income, foreign assets may become subject to tax and they will also be issued tax for Medicare levy. Expats will gain access to many other benefits such as accessing the Australian Social Security system and access to Australia’s free health system.
Tax will not need to be paid on investment income earned from investment if an expat is not a permanent resident in Australia.

Getting advice about tax in Australia is very important for both temporary and permanent residents. Expats should plan accordingly before moving to Australia.