"Chinatown" news.china.com.au-Official media of Chinese Australians
Talking about the end of the fiscal year is here! Tax refund, are you ready? Are you worried that there are not enough reports that should be retired? If you report too much, you are afraid of being investigated?
- The Australian Taxation Office has introduced new technology specifically to monitor tax refund overstatements and abusers!
- If your tax refund declaration exceeds the tax bureau's estimate, you will be "received" by the tax bureau's focus!
- The tax bureau has learned that hundreds of thousands of Australians have benefited from shared services (app and other profit channels) (but they have not paid taxes)
- Uber, AirbnbThe platform and its users (service providers),All will be taxed too!People who make money through similar systems, whether businesses or individuals, obediently confess their income to the tax bureau
- People who falsify income will faceHigh fines and even jail
The Australian Taxation Office ATO has announced 3 "golden rules" that must be followed when filing taxes and applying for tax refunds:
First, make sure that the expense of your tax declaration is your own expense, and does not include the cost of debt repayment; second, ensure that the content of the tax declaration is related to your work; third, you must keep good evidence, including receipts and invoices Wait.
ATO administrative assistant Graham Whyte issued the above reminder.
Every taxpayer wants to refund as much money as possible for himself, and this year will become particularly difficult because the tax bureau has introduced the latest advanced monitoring system.
In recent years, with the development of mobile e-commerce, many people in Australia have made money through Uber and Airbnb. However, these emerging industries have developed so fast and the new regulations have not kept up, so that some users think that these incomes can be tax free. outer.
However, do you think you can easily run away if the country wants to divide it?
This year, the transaction volume of this type of service system in Guangxin State exceeded $5 million. Of course the government can't just ignore it.
Therefore, people with relevant income must file tax returns obediently, and must consult your accountant carefully.
AttachedAustralia's practical personal tax return, tax refund, negative tax deduction guide
To live in Australia, not only do you have to live in your hometown and follow the laws of Australia, but you must also consciously pay and file taxes in accordance with the Australian tax system. Of course, you can also get the tax refund you deserve.
No matter where you are from or do not understand English, you need to file taxes according to the regulations. Therefore, it is very necessary for us to understand the common sense of tax filing in Australia.
Introduction to the Australian Taxation System
Practical common sense of taxation and tax refund in Australia
1. Tax number application
When you arrive in Australia, whether you are working or studying abroad, you should apply for a personal tax file number (Tax File Number) as soon as possible. I want to remind everyone that the personal tax number is confidential information, do not disclose it to others at will! Only banks and other institutions can ask you to provide a tax number.
2. What is "Financial Year"
It turns out that in Australia, from July 7st to June 1th of the following year, it is the calculation cycle of personal annual income. Therefore, how much income you have in Australia, and how much tax should be called, is not calculated in natural years, but in the fiscal year period mentioned here.
3. Annual tax filing time
每年的7月1日到10月31日就是法定的报税期，如果你委托会计师报税的话，可以延长到次年的3月31日。您必须在此期间向 ATO 申报上一财年的个人收入税。
4. Main taxes
Australia is a country with a tax-sharing system, and its tax revenue is divided into central tax revenue and local tax revenue. among them,
- Federal taxes include: personal income tax, corporate income tax, sales tax, welfare insurance tax, customs duty, consumption tax and other taxes, as well as the profits paid by federal state-owned enterprises, etc.
- State government taxes include: payroll tax, stamp tax, financial institution tax, land tax, debt tax and other taxes
Australia is different from other tax-sharing countries in that the main tax is different: Australia's main tax is direct tax, and personal income tax in direct tax is the most important. Personal income tax accounts for approximately 60% of the entire federal tax revenue.
5. Personal requirements for submitting tax returns
Australian tax law stipulates that anyAustralian tax residents, Regardless of whether the income is derived from within or outside Australia, you need to declare income tax to the Australian Taxation Office (ATO).
Generally speaking, as long as the individual lives in Australia orThose who have lived in Australia for more than 183 days may be deemed to be an Australian tax resident and be liable for taxation.
Individuals who do not have permanent residency or citizenship status do not mean that they can be exempted from taxation obligations. When the Australian Taxation Office assesses whether an individual is a tax resident, it will consider other factors, such as individuals, in addition to the residence and number of days of residence. International students are also tax residents in terms of where their main business is located and whether they intend to live in Australia for a long time.
remind: Many international students have an option when applying for a tax file number. Ask you if you are “Resident on Tax Purpose”. Don’t mistake it for asking if you are an Australian resident or PR, but if you areAustralian tax residentIf you meet this condition, you should choose Yes.
6. Preparation of tax filing materials
There are many kinds of documents for tax filing, mainly including:
- Tax return or assessment notice
- All other income records, such as pensions, welfare payments, stocks sold, rents received
- All expenditure vouchers related to work, business, financial investment (receipts, invoices, air tickets, bills, private health insurance numbers, income and expenditure documents for spouses and children, valid notes, etc.)
- Company or small business account book details
If you have undocumented expenses, such as train tickets, as long as there is a reasonable calculation method, the tax bureau will also approve it. All tax returns must be kept for 5 years because the tax bureau conducts random checks every year. During the spot check, all vouchers are based on statements, but occasionally reasonable "forgot" may be accepted by tax officials. If it is verified that the wrong report or overreport is not reported, the fine will be a lot, at least 13% of the annual income. Generally speaking, work-related expenses below $300 generally do not need proofs, and you can get a tax refund based on your own records.
7. e-tax submission method
One of the easiest ways to submit online tax returns is to use online e-tax (electronic tax filing software). E-tax is a free electronic tax filing system available on the Australian Taxation Office website, which can be used 7 hours a day, 24 days a week.
As long as you search for E-tax on the ATO official website, you can download E-tax. The biggest advantage of using E-tax is that you can immediately see how much tax can be refunded or how much you need to pay, but the premise is that you must have basic tax knowledge, so as not to get the amount you deserve because you don’t know how much you can claim, or Too many claims were reviewed by ATO.
Use E-tax to file your own tax, the materials to be prepared include:
- PAYG Payment Summary provided by the employer,
- Tax number
- Bank account number (if you choose directdebit)
- Medicare card number (if any)
- Annual bank interest
- Investment (if any) stock dividends
- Rental income and expenses of investment housing (if any)
If it is the first tax filing and there is no Notice of Assessment, ATO will ask you to provide some information that only you know, such as the annual pre-tax salary on the PAYG summary. If you have a spouse (couple/cohabiting), you may need to fill in each other's information.
Finally, fill in the bank account number. ATO will automatically transfer money to this account. Make sure that the BSB and Account Number are correct. After completing these, enter the income and work expenses section, which depends on your personal circumstances.
Current Australian personal income tax rate
From the above table, it is not difficult to find that nearly half of the money of high-income people has to be handed over to the tax bureau, so everyone should study carefully and do a good job in investment, financial management, and tax refunds.
About Australian tax refund
There are many ways to reasonably reduce the amount of tax. It is often heard that most of the truly wealthy and large companies in Australia pay very little tax. So here are some tips for tax refunds, so that everyone can avoid tax reasonably.
Reasonable and legal tax avoidance
1. Are willing to spend money to hire an accountant. If you have your own business, or have a house, car, or family, and you have multiple sources of income and expenses, generally speaking, don’t file your own taxes. You should find a good accountant. He can not only help you with the accounting, but also professionally answer inquiries from the tax bureau on your behalf.
2. Keep the proof of reasonable expenditure. Many reasonable expenses can be used for tax refunds. Because they are likely to be able to declare tax refunds reasonably. For example, computer upgrades, repairs, batteries, car repairs, insurance, gasoline, entertaining customers, travel expenses, etc.;
If there is an invoice for investment housing, purchase of furniture, housing loss, Internet access, cleaning, telephone costs, etc., it can also be provided.
3. If the couple’s income is one high and one low, or one has nothing, the high-income party can purchase a spouse’s pension for the low-income party, up to a tax concession of $540. Of course, there are other ways, such as changing the average property owned by both parties to a higher proportion of the high-income party, or the high-income party paying housework wages to the low-income party (with written proof).
4. Investing in Australian real estate has become a popular tax refund method in recent years. Especially in the past few years, taxes can be deducted on depreciation, mortgage interest, and maintenance.
5. If you have several properties, try to live in the property with the greatest value-added. If you need to sell, it is best to be at least one year later, so you can enjoy a 50% value-added discount. If you want to sell your investment house in the future, try to sell your investment house when your annual income decreases, such as when you retire, quit your job, or get sick (do not want), so that you can pay less VAT. If you have an investment house and want to get a pension, remember to transfer your assets 5 years before you retire, otherwise it will still be included in your retirement assets.
6. Register a small business. This method can also help you get a tax refund. Generally speaking, ordinary migrant workers do not have many items for tax refund, but if they participate in business, there is plenty of room for tax refund. For example, after working in stocks, trading more than 40 times a year is the best way to make money, but if you lose money, you can report the loss and combine it as a negative number in your annual income, so you can pay less tax.
7. In Australia, there are some other tax avoidance methods. If you are a business operator, you can set up a family fund to distribute the profits from the business to each family member;
About negative deductions in Australia
Australia is one of the few countries that implement negative gearing, and Australia's negative gearing policy is very different from other countries! But what exactly is negative gearing? Many of my friends may have heard that it is "a powerful tool that can quickly accumulate wealth", but they don't seem to have a detailed understanding of "negative deduction". In order for everyone to live in Australia more happily and richly, today we will fully analyze the negative deduction!
NegativeGearingThe big secret of negative gearing!
What is negative gearing
Don’t be naive to think that “negative deduction tax” with the word “tax” means that it is a type of tax. In fact, it is a calculation method that mainly exists in real estate investment~ In a fiscal year, if you maintain the cash expenditure of investment properties and Non-cash expenditure exceeds investment income, (for example, if we need to pay bank loan interest, water, electricity, municipal fees, etc. to maintain our business, plus housing depreciation, etc., exceed our rent). To taxable income, we call it negative gearing.
Although negative gearing is not a tax, it is also linked to taxation! This is because negative taxable income can offset other sources of positive taxable income, such as salary income (Salary/Wage), capital gains (Capital Gain), etc., which can reduce taxable income and ultimately reduce tax payment Effect.
The negative tax deduction policy allows owners to declare all tax deductions related to the property, including mortgage interest-so they only need to ensure that the cost of investing in the property is greater than the rental income~
How to deduct negative deductions?
Before we talk about how "negative tax deduction" is "deducted", there are two prerequisites that must be emphasized again:
- The beneficiary is borrowing from the bank to invest (including real estate and stocks, etc.);
- Investment income is lower than loan interest rates and other related expenses.
So, let's simulate what the whole process looks like:
Suppose, you borrowed 50 from the bank (the individual has paid the down payment of 20%) and bought an investment house.
The annual interest rate for borrowing $500,000 is 5%, and the annual interest rate is $25,000;
The rent of the property is $500 per week and the annual income is $26,000;
The depreciation of investment properties is $15,000;
Property management fee $4,000/year;
The above fees:
Income: Rent $26,000
Expenses: interest $25,000 + depreciation costs $15,000 + property costs $4,000 = $44,000
Income and expenses offset, loss of $18,000
Assume that your annual salary is $60,000. Due to investment losses, $18,000 of the loss will be subtracted when calculating the personal tax payable.
therefore,The amount you need to pay taxes drops from $60,000-$18,000 to $42,000.
According to Australia's personal income tax rate (which may be updated in the near future), $37,001–$80,000 is 32.5%.
Your dues have dropped from $60,000 to $42,000, which means you can pay $5,850 less. If your company has paid all taxes to the Inland Revenue Department based on the income of $60,000, the Inland Revenue Department will refund you $5,850 based on your "loss".
Therefore, in Australia, if an individual suffers a loss due to loan investment, the government will provide "compensation" according to the "negative tax deduction" policy~
From the above simple algorithm, it is not difficult to see that most of the beneficiaries are those who can afford loans to purchase investment houses. Especially high-income earners can get more and greater benefits from negative deductions! To know. According to statistics, investors with incomes of more than $180,000 get an average tax rebate of up to $23,800! It is more than double the average rebate value of $10,950!
So who has benefited from this in Australia?
According to data from the Australian Bureau of Statistics, many Australians have benefited from this! Of course, a considerable percentage of those who benefit from negative gearing are "average working Australians". According to statistics from the previous two fiscal years, the salary groups that benefited from negative tax deductions include:
- Teachers and early childhood educators: 61,500
- Emergency service personnel: 12,315
- Nurses and elderly caregivers: 41,980
- Cleaners: 6,940
- Junior Office Clerk: 83,280
- Hotel service staff: 21,555
- Hairdresser: 1,645
- Salesperson: 46,450
- Transport workers (buses, trains, trucks, express delivery): 15,525
- Craftsman (carpenter, hydraulic, electrician, etc.): 34,395
Want to know how many suites do people in Australia have?
Take a look at this picture!
*Note: This article is general content and not for any investment reference. The data involved in the article may be updated, please refer to the latest official data
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