About
Australia
Income Tax
To work in Australia, you'll need a Tax File Number (TFN) or you will pay tax at the emergency rate of 48%. With our Tax Saver Pack, we start organizing your TFN before you leave home so you'll be able to start work immediately in Australia and pay tax at the normal rate of 29%. Apply for Your TFN Now.
When you start working, your employer will provide you with an Employment Declaration form which helps to calculate the correct amount of tax to deduct from your wages.
Medicare Levy
Most Australians are obligated to pay Medicare levy of 1.5% of their taxable income to help fund the Medicare. Depending on the income and whether you have private health care, you may have to pay the 1% Medicare levy surcharge in addition to the 1.5% Medicare Levy.
Goods and Services Tax (GST)
Australia has a Goods and Services Tax of 10% on most items, and is included in the prices of these items. Some exceptions are your home (though homes built after 1 July 2000 will include a GST component, but relief is available to first home buyers), most supermarket groceries, and most medical services.
Stamp Duty
Stamp duty is payable on certain financial transactions, and rates differ according to the state. It is added on house purchases, new or used vehicles and other transactions such as buying shares, insurance and life insurance.
Superannuation
Superannuation is a long-term savings plan for retirement. It consists of 9% of the salary, and is called the ‘superannuation guarantee' which the employer adds to a super fund. While working, your savings grow into your super account, and can be invested through your super fund.
The superannuation is very convenient for Australians because they get great tax benefits and government incentives for contributing to it. The tax they pay on money entering their super account and on any earnings is 15%.
Taxback.com may assist you with claiming the taxes you have overpaid after your first year of working in Australia. They can consult you on any tax-related issues and help you claim your superannuation back, if you decide to leave Australia.