Talking about the end of the fiscal year! Tax rebate, are you ready? Is not very worried that the return of the newspaper is not enough, too many reports are afraid of being investigated?
Watch it!
The Australian Revenue Service has introduced new technology specifically for monitoring tax rebate overreporting and abusers!
If your tax rebate returns exceed the tax bureau`s estimate, then you will "win" the tax bureau`s focus!
The IRS has learned that hundreds of thousands of Australians have benefited from sharing services (such as APP and other profit channels) (but have not yet paid taxes)
The Uber, Airbnb platform and its users (service providers) are also taxed! People who make money through similar systems, whether they are businesses or individuals, confess their income to the tax bureau
The person who has forged the income will face a high fine or even in prison
The Australian Inland Revenue Service (ATO) has announced three rules of the Gold Code that must be followed when filing tax returns and applying for tax rebates:
First, make sure that your tax return is your own expense and does not include the cost of debt repayment; second, ensure that the cost of the tax return is related to your work; and thirdly, you have to keep good evidence, including receipt, invoice, etc.
Graham Whyte, ATO`s Administrative Assistant, issued the above reminder.
Every taxpayer wants to get as much money as possible for himself and this year will be particularly difficult because the IRS has introduced the latest state-of-the-art monitoring system.
In recent years, with the growth of mobile e-commerce, many people in Australia have made money through Uber,Airbnb, and these emerging industries have grown so fast that new regulations have yet to catch up, so that some users think these revenues can be excused from taxes.
However, do you think it is easy to run away when the country is going to be a part of it?
This year, Gwangxin has traded more than $500 million in services like this. Goverment certainly can`t stand by.
Therefore, people with relevant income, must submit tax returns, must consult your accountant.
Australia practical personal tax returns, tax rebates, negative tax deduction strategy
To live in Australia, we not only have to follow the customs and abide by Australian laws, but also pay taxes according to the Australian tax system and return taxes. Of course, we can also get the tax rebate due. No matter where you come from, whether you know English or not, tax returns are required. Therefore, it is very necessary to understand the relevant common sense of Australian tax returns.
A brief introduction to Australia`s tax system
Australia is a federal country, after a long period of evolution and development, a sound and scientific tax system has been established in Australia. Australia`s tax system has formed its own characteristics in many aspects. It has not only a reasonable tax system, but also a unique tax management system and a rigorous and effective tax audit mechanism. Thus, the smooth implementation of the tax system is guaranteed. Australia is a high welfare, but also a high tax country.
Practical knowledge of tax rebate in Australia
1. Application for tax numbe
When you arrive in Australia, whether you are working or studying abroad, you should apply for a personal tax (Tax File Number). As soon as possible To remind everyone is that the personal tax number is confidential information, do not reveal to others at will! Only an institution such as a bank can ask you to provide a tax number.
2. What is "Fiscal year Financial Year"?
Chinese newcomers to Australia may not understand: why is it called Financial Year. every year from July 1 to June 30 next year Isn`t a Year from January 1 to December 31?
It turns out that in Australia from July 1 to June 30 of the following year, that is, the calculation cycle of the individual`s annual income. So, how much income you have in Australia, how much tax should be called, not in accordance with the natural year, but in accordance with the fiscal year said here.
3. Annual tax filing time
Each year, July 1 to October 31 is the statutory tax return period, if you entrust accountants to return tax, can be extended to March 31 of the following year. You must file a personal income tax for the previous fiscal year with ATO during this period.
4. Main taxes
Australia is a tax-sharing country, its tax revenue is divided into central tax revenue and local tax revenue. Of which,
Federal taxes include: personal income tax, corporate income tax, sales tax, welfare insurance tax, tariff, consumption tax and other taxes, as well as federal state-owned enterprises to pay profits and so on.
State goverment taxes include: payroll tax, stamp duty, financial institution tax, land tax, debt tax and other taxes.
Australia is different from other tax-sharing countries in that it has different main taxes: Australia`s main taxes are direct taxes, and the personal income tax in direct taxes is the top priority. Personal income tax accounts for about 60% of federal revenue.
5. Personal request for filing tax returns
Australia`s tax code requires any Australian tax resident, whether his income comes from within or outside Australia, to file his income tax with the Australian Revenue Authority, (ATO).
Generally speaking, individuals whose residence is within Australia or stay in Australia for more than 183 days are likely to be considered as Australian tax residents and subject to tax obligations as long as they reside in Australia or stay in Australia for more than 183 days.
An individual who does not have permanent residence or citizenship does not represent an exemption from tax obligations as the Australian Inland Revenue Authority assesses whether an individual is a tax resident, in addition to taking into account the factors of domicile and number of days of residence. Other factors, such as the location of one`s main business, whether or not he intends to live in Australia for a long time, will also be taken into account, and international students are tax residents.
Caution: when applying for a tax number, many foreign student friends have an option to ask if you are "Resident on Tax Purpose" and do not mistakenly think that you are an Australian resident or an PR, but whether you are an Australian tax resident, and if this condition is met, It should be chosen.
6. Preparation of tax filing materials
There are a variety of documents for tax returns, including:
Tax return group certificate or last year`s tax record tax return or assessment notice
[计] payroll
All other income records, such as pensions, benefits, sale of shares, income from rent
All vouchers of expenditure related to work, business, and financial investment (receipts, invoices, tickets, bills, private health care numbers, income and expenditure documents for spouses and children, valid notes, etc.)
A breakdown of the accounts of a company or small business.
If you have some expenses without vouchers, such as train tickets, as long as there is a reasonable calculation method, the Inland Revenue Department is also approved. All tax returns will be kept for five years, as the Inland Revenue Department will conduct random checks every year. In random checks, everything is based on evidence, but occasionally a reasonable "forget" can also be accepted by the tax officer. If a false overstatement is verified, there will be a lot of fines, at least 13% of the annual income. Generally speaking, work-related expenses, less than $300, generally do not require vouchers, can be recorded on their own to obtain a tax rebate.
7, delivery of the etax
One of the easiest ways to file online tax returns is to use the online e-tax (electronic tax filing software). E-tax is a free-of-charge electronic tax filing system on the Australian Inland Revenue Authority`s website, available 24 hours a day.
As long as you search for E tax on the ATO website, you can download E tax. The greatest benefit of using E-tax is that you can immediately see how much tax is refundable or how much you need to make up for it, but only if you have basic tax knowledge, so as not to be unable to get back the amount you deserve because you don`t know how much Claim you can get. Or Claim too much to be censored by the ATO.
Use E-tax to file your own tax returns, and the information you need to prepare includes:
(summary of the annual PAYG Payment Summary (wages provided by the employer),
duty paragraph
Bank account number (if you choose the way directdebit is chosen)
Medicare card number (if any)
Annual bank interest
Dividends on investments (if any) in shares
Rental income and expenses of investment houses (if any)
If this is the first tax return, no Notice of assessment,ATO will ask you to provide information that only you know, such as the full-year pre-tax salary on PAYG summary. If you have a spouse (husband / wife / cohabitation), you may need to fill in each other`s information.
Finally, fill in the bank account, and ATO will automatically transfer money to this account, making sure both BSB and Account Number are right. After completing this, you enter the income and work expenses section, which is filled in depending on your personal circumstances.
Current individual income tax rate in Australia
It is not difficult to find out from the above table that nearly half of the money of the high-income people has to be paid to the Inland Revenue Department, so we should study it well, make good investments, finance management, and tax rebates.
On tax rebate in Australia
There are many ways to reduce taxes reasonably, and it is often heard that most of Australia`s truly rich and large companies pay little tax. So here are some tax rebate tips, let us reasonably avoid taxes.
Reasonable and legal tax avoidance
I have to pay for an accountant. If you have your own business, if you have a house, a car, a family, multiple sources of income and expenses, generally do not file your own taxes, you should find a good accountant. He can not only help you with the accounts, but also on behalf of your interests to respond professionally to the Inland Revenue Department`s inquiries.
2, keep the evidence of reasonable expenditure. A lot of reasonable expenses can be used in tax rebate. Because they are likely to be able to reasonably declare tax rebates. Such as computer upgrade, maintenance, battery, car repair, insurance, gasoline, hospitality, business expenses, etc.;
If there are investment housing, purchase furniture, house wear and tear, Internet access, cleaning, telephone charges and other invoices can also be provided.
3, if the husband and wife have a higher or lower income, the high-income party can purchase a spouse pension for the low-income party, and can receive a maximum tax benefit of $540. Of course, there are other ways, for example, to change the average property owned by both parties to a higher proportion of the income side, or to pay household wages to the lower side (with written vouchers).
4, investment in Australian real estate, is a more popular tax rebate method in recent years. Especially in previous years, you can deduct taxes in depreciation, mortgage interest, maintenance, and so on.
5, if you have a few properties, try to live in the most value-added property. If you need to sell, it is best after at least a year, so you can enjoy a 50% value-added discount. If you later want to sell your investment house, try to pay less VAT if your annual income becomes smaller, such as retirement, resignation, and illness. If you have an investment home and want to get a pension, remember to transfer your assets five years before you retire, otherwise you will still be included in your retirement assets.
6, register a small business, this method can also help you tax rebate. In general, ordinary workers do not have many items to refund, but if involved in the operation, there will be plenty of tax rebate space. For example, part-time stock, trading more than 40 times a year, can make the best money, but if you lose, you can report losses, as a negative number consolidated in your annual income, so that you can pay less tax.
In Australia, there are other ways of avoiding tax. If you are a business operator, you can set up a family fund to share the profits of your business to each family member;
About Australia`s withholding tax
Australia is one of the few countries that practice withholding (negative gearing), and Australia`s withholding policy is very different from that of other countries. But what exactly is a withholding tax? Many friends may have heard of it as "a powerful tool to accumulate wealth quickly", but don`t seem to know more about negative tax deductions. In order to make everyone more happy and rich in Australia, today we will fully analyze the negative tax deduction!
NegativeGearing is a big secret of the tax deduction!
What is a negative tax deduction
Don`t be naive to think that "negative tax" comes with the word "tax" and that it is a tax category. In fact, it is a method of calculation that mainly exists in real estate investment. In a financial year, If the cash and non-cash expenditure on maintaining an investment property exceeds the investment income, (for example, if we need to pay interest on bank loans, water charges, electricity, municipal expenses, etc., plus depreciation of houses, etc., to maintain our business, Negative taxable income that exceeds our rent), we call it withholding tax.
Although tax deduction is not a tax category, but it is also linked to tax oh! This is because negative taxable income can offset positive taxable income from other sources, such as wage earnings (Salary/Wage), capital gains (CapitalGain), and so on, thereby reducing taxable income and ultimately reducing tax payments.
The negative tax deduction policy allows owners to declare all property-related deductions, including mortgage interest-so they just need to make sure that the cost of investing in the property is greater than the rental income.
How to deduct tax?
Before we say how "deductible tax" is "withheld", there are two prerequisites to emphasize again:
The income is from bank lending (including real estate and stock, etc.);
Investment returns are lower than loan rates and other related expenses.
So, let`s simulate what the whole process looks like:
Suppose you borrow five hundred thousand from the bank (an individual has paid a 20% down payment) and buy an investment home.
The annual interest rate for borrowing $500000 is 5%, and the annual interest rate is $25000;
The rent of the property is $500 per week and the annual income is $26000;
Depreciation fee of $15,000 for investment property;
Property management fee of $4,000 / year;
All of the above costs:
Income: $26000 for rental
Expenditure: interest $25000 depreciation $15000 property costs $4,000 / 44,000
Revenue against expenditure, shortfall of $18,000
Let`s say you earn $60,000 a year, and as a result of an investment loss, you`ll be deducting $18,000 from the loss portion in calculating your personal tax payables.
As a result, the amount you need to pay is from $60,000 to $18,000 to $42,000.
According to Australia`s personal income tax rate (which may be updated in the near future), $37001 / 80000 is 32.5 percent.
The amount you should pay from $60,000 to $42,000, or $5,850. If your company has paid all taxes to the tax bureau in the amount of $60,000, the tax bureau will refund you $5,850 to you on the basis of your "loss".
So, in Australia, if an individual suffers a loss as a result of borrowing and investment, the goverment will give "compensation" in accordance with the "negative tax deduction" policy.
From the above simple algorithm it is not difficult to see that most of the beneficiaries are able to borrow to buy investment housing. In particular, high-income people can get more and greater benefits from negative tax deductions! You know. According to statistics, investors earning more than $180000 earn an average tax rebate of up to $23800! It`s more than double the average rebate value of $10950!
So who does Australia benefit from?
According to statistics from the Australian Bureau of Statistics, many Australians have benefited as a result. Of course, a sizeable proportion of those benefiting from negative deductions is the "ordinary working Australians" (average working Australians). According to statistics for the previous two financial years, the wage groups benefiting from negative tax deductions include:
Teachers and early Childhood educators: 61500
Emergency Service personnel: 12315
Nurses and elderly caretakers: 41980
Cleaner: 6940
Junior Office Clerk: 83280
Hotel Service: 21555
Barber: 1645
Salesperson: 46450
Transport workers (buses, trains, vans, couriers): 15525
Craftsmen (carpentry, plumber, electrician, etc.): 34395
The average wage earners have a total of 325,585 and have benefited from negative deductions and 80 per cent of them have an annual income of less than $80,000. 91% of them only have 1 or 2 investment properties.
But one thing worth noting is that 15,264 owners own at least 6 homes, declare investment losses, and 14,555 own 5! As nearly 30, 000 Australians own five or more homes that can benefit from tax deductions, goverment loses as much as $5 billion a year in taxes.
Want to know how many houses are available in Australia?
Look at this picture!
As you can see, 73% of Australians have a flat, 18% have 2 units, 5% have 3 units, 2% have 4 units, and 1% have 5 units! There are still 1% of people who own more than six properties.
* Note: this article is general and does not serve as a reference for any investment. The data mentioned in this article may be updated. Please update the official data.
