Tax Advice for Individuals

When should I declare my tax file number?

Every time you start a new job with a new employer you need to declare your tax file number.

How long does it take for the ATO to pay refunds?

It can take as short as 1 week from electronic lodgement of your tax return if you provide your bank detail for electronic transfer. Otherwise most refunds are processed by the Taxation Office within 14 working days.

Are students treated as residents for tax purpose?

Yes most of the cases students are treated as resident for tax purpose and taxed as like other Australian residents.

Do I need to lodge a tax return?

If you earn more than $6,000 in a particular year you need to lodge a return. If you receive a government pension as your only income you may not need to lodge a return. It is best to inform the ATO of your situation.

What happens if I don’t lodge a tax return?

Penalties will be issued if a tax lodgement is late or not lodged at all.

Can you prepare multiple years tax returns at the same time?

Certainly you can.

What is the Medicare levy?

ATO calculate Medicare levy at the rate of 1.5% of your taxable income. It may vary in certain circumstances.

What is current individual income tax rate?

Tax rates 2009-10 [Income vs Tax rate]

$1 – $6,000 –   Nil

$6,001 – $35,000 -      15c for each $1 over $6,000

$35,001 – $80,000 -    $4,350 plus 30c for each $1 over $35,000

$80,001 – $180,000 -  $17,850 plus 38c for each $1 over $80,000

$180,001 and over -    $55,850 plus 45c for each $1 over $180,000

Tax rates 2008-09 [Income vs Tax rate]

$1 – $6,000 -   Nil

$6,001 – $34,000 -      15c for each $1 over $6,000

$34,001 – $80,000 -    $4,200 plus 30c for each $1 over $34,000

$80,001 – $180,000 -  $18,000 plus 40c for each $1 over $80,000

$180,001 and over -    $58,000 plus 45c for each $1 over $180,000

The above rates do not include the Medicare levy of 1.5%

Are gifts taxable?

ATO consider whether there is enough nexus between your job and the gift. For example if you get a car as gift from your employer ATO probably consider this as taxable. On the contrary if you get a car from your dad as a birthday present that is not taxable.